Ciena Corporation (CIEN) vs Cisco Systems, Inc. (CSCO)

Ciena Corporation and Cisco Systems, Inc. are both Communication Equipment companies. Cisco Systems, Inc. is the larger, with a market value of $428.1B against $49.6B — 8.6× the size. Cisco Systems, Inc. trades at the lower P/E: 31.2× against 69.3×. Ciena Corporation grew revenue faster over the last twelve months: 32.6% against 11.8%. Cisco Systems, Inc. has the higher net margin (21.0% vs 10.9%) and the higher return on invested capital (17.9% vs 12.6%). Across the 22 metrics below, Cisco Systems, Inc. leads on 18 and Ciena Corporation on 4.

Valuation

Metric CIEN CSCO Communication Equipment median
P/E 69.34 31.21 33.16
P/S 7.56 6.53 2.02
P/B 14.89 8.22 2.02
Price to free cash flow 55.88 32.38 30.03
EV/EBITDA 50.45 23.28 12.47
EV/Sales 7.66 6.58 2.09
Earnings yield 1.44% 3.20% (0.47%)
Free cash flow yield 1.79% 3.09% 1.43%

Profitability

Metric CIEN CSCO Communication Equipment median
Gross margin 44.07% 64.52% 40.03%
Operating margin 12.27% 24.27% 2.43%
Net margin 10.87% 20.95% (0.64%)
Free cash flow margin 13.53% 20.16% 0.95%
Return on equity 22.40% 27.32% (1.27%)
Return on assets 9.52% 10.53% (0.10%)
Return on invested capital 12.63% 17.87% 1.29%

Growth

Metric CIEN CSCO Communication Equipment median
Revenue growth (TTM) 32.57% 11.77% 9.44%
EPS growth (last fiscal year) 46.55% 27.59% 31.29%
Revenue growth, 5-year CAGR 6.19% 4.92% 4.92%
Net income growth, 5-year CAGR (19.34%) 4.61% 0.00%

Health

Metric CIEN CSCO Communication Equipment median
Debt to equity 1.06 0.39 0.05
Current ratio 3.80 0.93 2.07
Net debt to EBITDA 0.67 0.19 0.93

Dividend

Metric CIEN CSCO Communication Equipment median
Dividend yield — 1.60% 1.01%
Payout ratio — 0.50 0.34

Size

Metric CIEN CSCO Communication Equipment median
Market cap 49.55b 428.13b 592.79m

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