Cisco Systems (NASDAQ:CSCO) vs. NETGEAR (NASDAQ:NTGR) Head to Head Contrast

Cisco Systems (NASDAQ:CSCO) and NETGEAR (NASDAQ:NTGR) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Earnings & Valuation

This table compares Cisco Systems and NETGEAR”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cisco Systems	$53.80 billion	4.99	$10.32 billion	$2.45	27.68
NETGEAR	$673.76 million	1.28	$12.36 million	$0.82	36.59

Cisco Systems has higher revenue and earnings than NETGEAR. Cisco Systems is trading at a lower price-to-earnings ratio than NETGEAR, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Cisco Systems has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, NETGEAR has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Profitability

This table compares Cisco Systems and NETGEAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cisco Systems	17.60%	26.48%	9.87%
NETGEAR	3.72%	-7.63%	-4.85%

Insider & Institutional Ownership

73.3% of Cisco Systems shares are held by institutional investors. Comparatively, 83.0% of NETGEAR shares are held by institutional investors. 0.0% of Cisco Systems shares are held by company insiders. Comparatively, 2.3% of NETGEAR shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cisco Systems and NETGEAR, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cisco Systems	0	8	15	2	2.76
NETGEAR	0	0	1	0	3.00

Cisco Systems currently has a consensus target price of $69.95, suggesting a potential upside of 3.14%. NETGEAR has a consensus target price of $29.00, suggesting a potential downside of 3.33%. Given Cisco Systems’ higher probable upside, research analysts plainly believe Cisco Systems is more favorable than NETGEAR.

Summary

Cisco Systems beats NETGEAR on 10 of the 15 factors compared between the two stocks.

About Cisco Systems

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization. In addition, it provides Internet for the future product consists of routed optical networking, 5G, silicon, and optics solutions; collaboration products, such as meetings, collaboration devices, calling, contact center, and communication platform as a service; end-to-end security product consists of network security, cloud security, security endpoints, unified threat management, and zero trust; and optimized application experiences products including full stack observability and network assurance. Further, the company offers a range of service and support options for its customers, including technical support and advanced services and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.

About NETGEAR

NETGEAR, Inc. provides connectivity solutions the Americas; Europe, the Middle East, Africa; and the Asia Pacific. The company operates in two segments, Connected Home, and NETGEAR for Business. The Connected Home segment offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, digital displays, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, and Wi-Fi network adapters; and provides value-added service offerings, including security and privacy, technical support, and parental controls. The NETGEAR for Business segment provides pro AV Solutions; pro routers; enterprise grade cloud managed or standalone access points; general purpose ethernet switches; NETGEAR Insight remote management software; and NETGEAR engage controller. It markets and sells its products through wholesale distributors, traditional and online retailers, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store. The company was incorporated in 1996 and is headquartered in San Jose, California.