Cisco Systems, Inc. (CSCO) vs Ubiquiti Inc. (UI)

Cisco Systems, Inc. and Ubiquiti Inc. are both Communication Equipment companies. Cisco Systems, Inc. is the larger, with a market value of $422.0B against $34.1B — 12.4× the size. Cisco Systems, Inc. trades at the lower P/E: 31.8× against 35.3×. Ubiquiti Inc. grew revenue faster over the last twelve months: 27.2% against 11.8%. Ubiquiti Inc. has the higher net margin (29.3% vs 21.0%) and the higher return on invested capital (89.4% vs 17.9%). Both pay a dividend; Cisco Systems, Inc. yields more (3.15% vs 1.89%). Across the 23 metrics below, Ubiquiti Inc. leads on 13 and Cisco Systems, Inc. on 10.

Valuation

Metric CSCO UI Communication Equipment median
P/E 31.84 35.31 33.61
P/S 6.66 10.36 2.16
P/B 8.39 23.56 2.40
Price to free cash flow 33.03 37.32 25.02
EV/EBITDA 23.74 27.99 13.78
EV/Sales 6.71 10.31 2.27
Earnings yield 3.14% 2.83% (0.65%)
Free cash flow yield 3.03% 2.68% 1.61%

Profitability

Metric CSCO UI Communication Equipment median
Gross margin 64.52% 46.16% 39.47%
Operating margin 24.27% 36.21% 2.39%
Net margin 20.95% 29.33% (0.74%)
Free cash flow margin 20.16% 27.76% 1.39%
Return on equity 27.32% 91.09% (1.91%)
Return on assets 10.53% 52.41% (0.20%)
Return on invested capital 17.87% 89.37% 0.72%

Growth

Metric CSCO UI Communication Equipment median
Revenue growth (TTM) 11.77% 27.22% 11.48%
EPS growth (last fiscal year) 27.59% 34.78% —
Revenue growth, 5-year CAGR 4.92% 11.52% 4.92%
Net income growth, 5-year CAGR 4.61% 9.27% 0.00%

Health

Metric CSCO UI Communication Equipment median
Debt to equity 0.39 0.00 0.06
Current ratio 0.93 2.93 2.01
Net debt to EBITDA 0.19 (0.51) 0.67

Dividend

Metric CSCO UI Communication Equipment median
Dividend yield 3.15% 1.89% 2.63%
Payout ratio 0.50 0.36 0.00

Size

Metric CSCO UI Communication Equipment median
Market cap 422.01b 34.08b 563.45m

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