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AMZN vs. CSCO: A Head-to-Head Stock Comparison

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Here’s a clear look at AMZN and CSCO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AMZN’s market capitalization of 2,371.81 billion USD is substantially larger than CSCO’s 274.71 billion USD, indicating a significant difference in their market valuations.

AMZN’s beta of 1.33 points to significantly higher volatility compared to CSCO (beta: 0.88), suggesting AMZN has greater potential for both gains and losses relative to market movements.

SymbolAMZNCSCO
Company NameAmazon.com, Inc.Cisco Systems, Inc.
CountryUSUS
SectorConsumer CyclicalTechnology
IndustrySpecialty RetailCommunication Equipment
CEOAndrew R. JassyCharles H. Robbins
Price223.41 USD69.37 USD
Market Cap2,371.81 billion USD274.71 billion USD
Beta1.330.88
ExchangeNASDAQNASDAQ
IPO DateMay 15, 1997February 16, 1990
ADRNoNo

Historical Performance

This chart compares the performance of AMZN and CSCO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AMZN vs. CSCO: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AMZN

24.26%

Specialty Retail Industry

Max
70.52%
Q3
29.03%
Median
10.90%
Q1
-7.86%
Min
-57.43%

AMZN’s Return on Equity of 24.26% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

CSCO

21.50%

Communication Equipment Industry

Max
30.07%
Q3
8.07%
Median
1.84%
Q1
-11.93%
Min
-31.65%

In the upper quartile for the Communication Equipment industry, CSCO’s Return on Equity of 21.50% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AMZN vs. CSCO: A comparison of their ROE against their respective Specialty Retail and Communication Equipment industry benchmarks.

Return on Invested Capital

AMZN

13.10%

Specialty Retail Industry

Max
29.46%
Q3
13.75%
Median
8.05%
Q1
0.80%
Min
-17.95%

AMZN’s Return on Invested Capital of 13.10% is in line with the norm for the Specialty Retail industry, reflecting a standard level of efficiency in generating profits from its capital base.

CSCO

11.48%

Communication Equipment Industry

Max
11.59%
Q3
6.61%
Median
2.97%
Q1
-2.58%
Min
-13.18%

In the upper quartile for the Communication Equipment industry, CSCO’s Return on Invested Capital of 11.48% signifies a highly effective use of its capital to generate profits when compared to its peers.

AMZN vs. CSCO: A comparison of their ROIC against their respective Specialty Retail and Communication Equipment industry benchmarks.

Net Profit Margin

AMZN

10.14%

Specialty Retail Industry

Max
19.78%
Q3
8.49%
Median
3.43%
Q1
-0.69%
Min
-9.88%

A Net Profit Margin of 10.14% places AMZN in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.

CSCO

17.60%

Communication Equipment Industry

Max
23.65%
Q3
9.21%
Median
2.46%
Q1
-8.56%
Min
-29.87%

A Net Profit Margin of 17.60% places CSCO in the upper quartile for the Communication Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

AMZN vs. CSCO: A comparison of their Net Profit Margin against their respective Specialty Retail and Communication Equipment industry benchmarks.

Operating Profit Margin

AMZN

11.02%

Specialty Retail Industry

Max
24.47%
Q3
11.10%
Median
5.85%
Q1
0.66%
Min
-12.62%

AMZN’s Operating Profit Margin of 11.02% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

CSCO

20.30%

Communication Equipment Industry

Max
30.72%
Q3
11.64%
Median
5.79%
Q1
-2.28%
Min
-18.20%

An Operating Profit Margin of 20.30% places CSCO in the upper quartile for the Communication Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AMZN vs. CSCO: A comparison of their Operating Margin against their respective Specialty Retail and Communication Equipment industry benchmarks.

Profitability at a Glance

SymbolAMZNCSCO
Return on Equity (TTM)24.26%21.50%
Return on Assets (TTM)10.25%8.17%
Return on Invested Capital (TTM)13.10%11.48%
Net Profit Margin (TTM)10.14%17.60%
Operating Profit Margin (TTM)11.02%20.30%
Gross Profit Margin (TTM)49.16%65.24%

Financial Strength

Current Ratio

AMZN

1.05

Specialty Retail Industry

Max
3.24
Q3
1.99
Median
1.42
Q1
1.02
Min
0.54

AMZN’s Current Ratio of 1.05 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.

CSCO

0.95

Communication Equipment Industry

Max
3.40
Q3
2.59
Median
1.62
Q1
1.32
Min
0.86

CSCO’s Current Ratio of 0.95 falls into the lower quartile for the Communication Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AMZN vs. CSCO: A comparison of their Current Ratio against their respective Specialty Retail and Communication Equipment industry benchmarks.

Debt-to-Equity Ratio

AMZN

0.44

Specialty Retail Industry

Max
2.72
Q3
1.42
Median
0.87
Q1
0.35
Min
0.01

AMZN’s Debt-to-Equity Ratio of 0.44 is typical for the Specialty Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CSCO

0.64

Communication Equipment Industry

Max
1.82
Q3
1.00
Median
0.53
Q1
0.20
Min
0.02

CSCO’s Debt-to-Equity Ratio of 0.64 is typical for the Communication Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AMZN vs. CSCO: A comparison of their D/E Ratio against their respective Specialty Retail and Communication Equipment industry benchmarks.

Interest Coverage Ratio

AMZN

31.13

Specialty Retail Industry

Max
37.34
Q3
17.19
Median
4.28
Q1
0.11
Min
-23.60

AMZN’s Interest Coverage Ratio of 31.13 is in the upper quartile for the Specialty Retail industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

CSCO

6.87

Communication Equipment Industry

Max
16.12
Q3
9.22
Median
2.52
Q1
-0.75
Min
-12.07

CSCO’s Interest Coverage Ratio of 6.87 is positioned comfortably within the norm for the Communication Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

AMZN vs. CSCO: A comparison of their Interest Coverage against their respective Specialty Retail and Communication Equipment industry benchmarks.

Financial Strength at a Glance

SymbolAMZNCSCO
Current Ratio (TTM)1.050.95
Quick Ratio (TTM)0.840.87
Debt-to-Equity Ratio (TTM)0.440.64
Debt-to-Asset Ratio (TTM)0.210.24
Net Debt-to-EBITDA Ratio (TTM)0.501.39
Interest Coverage Ratio (TTM)31.136.87

Growth

The following charts compare key year-over-year (YoY) growth metrics for AMZN and CSCO. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AMZN vs. CSCO: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AMZN vs. CSCO: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AMZN vs. CSCO: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AMZN

0.00%

Specialty Retail Industry

Max
5.54%
Q3
1.52%
Median
0.00%
Q1
0.00%
Min
0.00%

AMZN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

CSCO

2.34%

Communication Equipment Industry

Max
4.72%
Q3
0.38%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.34%, CSCO offers a more attractive income stream than most of its peers in the Communication Equipment industry, signaling a strong commitment to shareholder returns.

AMZN vs. CSCO: A comparison of their Dividend Yield against their respective Specialty Retail and Communication Equipment industry benchmarks.

Dividend Payout Ratio

AMZN

0.00%

Specialty Retail Industry

Max
177.64%
Q3
9.49%
Median
0.00%
Q1
0.00%
Min
0.00%

AMZN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

CSCO

65.54%

Communication Equipment Industry

Max
91.96%
Q3
26.44%
Median
0.00%
Q1
0.00%
Min
0.00%

CSCO’s Dividend Payout Ratio of 65.54% is in the upper quartile for the Communication Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

AMZN vs. CSCO: A comparison of their Payout Ratio against their respective Specialty Retail and Communication Equipment industry benchmarks.

Dividend at a Glance

SymbolAMZNCSCO
Dividend Yield (TTM)0.00%2.34%
Dividend Payout Ratio (TTM)0.00%65.54%

Valuation

Price-to-Earnings Ratio

AMZN

35.92

Specialty Retail Industry

Max
81.45
Q3
42.51
Median
25.40
Q1
12.72
Min
1.88

AMZN’s P/E Ratio of 35.92 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CSCO

28.20

Communication Equipment Industry

Max
44.37
Q3
41.98
Median
30.61
Q1
23.44
Min
2.14

CSCO’s P/E Ratio of 28.20 is within the middle range for the Communication Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AMZN vs. CSCO: A comparison of their P/E Ratio against their respective Specialty Retail and Communication Equipment industry benchmarks.

Forward P/E to Growth Ratio

AMZN

1.72

Specialty Retail Industry

Max
5.90
Q3
2.79
Median
1.76
Q1
0.69
Min
0.00

AMZN’s Forward PEG Ratio of 1.72 is within the middle range of its peers in the Specialty Retail industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

CSCO

3.99

Communication Equipment Industry

Max
15.97
Q3
6.99
Median
2.78
Q1
0.66
Min
0.05

The Forward PEG Ratio is often not a primary valuation metric in the Communication Equipment industry.

AMZN vs. CSCO: A comparison of their Forward PEG Ratio against their respective Specialty Retail and Communication Equipment industry benchmarks.

Price-to-Sales Ratio

AMZN

3.65

Specialty Retail Industry

Max
5.26
Q3
2.60
Median
1.29
Q1
0.41
Min
0.06

AMZN’s P/S Ratio of 3.65 is in the upper echelon for the Specialty Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

CSCO

4.94

Communication Equipment Industry

Max
6.38
Q3
3.88
Median
2.17
Q1
1.15
Min
0.37

CSCO’s P/S Ratio of 4.94 is in the upper echelon for the Communication Equipment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

AMZN vs. CSCO: A comparison of their P/S Ratio against their respective Specialty Retail and Communication Equipment industry benchmarks.

Price-to-Book Ratio

AMZN

7.74

Specialty Retail Industry

Max
12.73
Q3
6.96
Median
3.28
Q1
1.42
Min
0.24

AMZN’s P/B Ratio of 7.74 is in the upper tier for the Specialty Retail industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

CSCO

6.01

Communication Equipment Industry

Max
14.42
Q3
7.01
Median
3.09
Q1
1.38
Min
0.41

CSCO’s P/B Ratio of 6.01 is within the conventional range for the Communication Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AMZN vs. CSCO: A comparison of their P/B Ratio against their respective Specialty Retail and Communication Equipment industry benchmarks.

Valuation at a Glance

SymbolAMZNCSCO
Price-to-Earnings Ratio (P/E, TTM)35.9228.20
Forward PEG Ratio (TTM)1.723.99
Price-to-Sales Ratio (P/S, TTM)3.654.94
Price-to-Book Ratio (P/B, TTM)7.746.01
Price-to-Free Cash Flow Ratio (P/FCF, TTM)113.9721.46
EV-to-EBITDA (TTM)18.0719.54
EV-to-Sales (TTM)3.755.32