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

Company Overview

CSCO’s market capitalization of 253.80 billion USD is significantly greater than APP’s 123.32 billion USD, highlighting its more substantial market valuation.

APP’s beta of 2.53 points to significantly higher volatility compared to CSCO (beta: 0.88), suggesting APP has greater potential for both gains and losses relative to market movements.

Performance Comparison

This chart compares the performance of APP and CSCO over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of APP and CSCO. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• APP’s Price-to-Earnings (P/E) ratio of 64.51 is very high. This often means that its current market price reflects high investor confidence in its future earnings potential, but it could also suggest the stock is expensive relative to its current earnings power.
• APP’s Forward PEG ratio of 2.62 and CSCO’s Forward PEG ratio of 3.70 are both considered very high. For APP, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. CSCO’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.

Dividend Comparison

APP currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while CSCO provides a 2.51% dividend yield, offering investors a component of income return.

Financial Strength Metrics Comparison

This section evaluates the financial strength of APP and CSCO. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• CSCO’s current ratio of 0.95 falls into the low category. This can indicate potential stress on the company's ability to address its short-term liabilities, suggesting that its liquid assets may not provide a strong safety margin over its immediate financial commitments, possibly impacting its operational flexibility.
• APP’s Debt-to-Equity (D/E) ratio of 6.45 is very high. This indicates that the company is significantly financed by debt, which can amplify returns but also substantially increases its financial risk profile and vulnerability to earnings fluctuations.
• CSCO’s Interest Coverage Ratio (ICR) of -13.99 is negative. This signals that its current operating earnings are insufficient to meet its interest obligations, a critical red flag for its financial health and capacity to manage its debt.