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

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

Company Profile

SymbolCFLTCSCO
Company NameConfluent, Inc.Cisco Systems, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareCommunications Equipment
Market Capitalization7.69 billion USD278.03 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJune 24, 2021February 16, 1990
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CFLT 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.

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

Historical Performance at a Glance

SymbolCFLTCSCO
5-Day Price Return8.67%2.96%
13-Week Price Return-12.75%1.53%
26-Week Price Return5.19%22.72%
52-Week Price Return11.67%33.94%
Month-to-Date Return12.63%2.79%
Year-to-Date Return-20.24%18.80%
10-Day Avg. Volume9.22M18.73M
3-Month Avg. Volume7.73M19.88M
3-Month Volatility77.62%19.20%
Beta0.960.87

Profitability

Return on Equity (TTM)

CFLT

-31.29%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

CFLT has a negative Return on Equity of -31.29%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

CSCO

22.18%

Communications Equipment Industry

Max
32.30%
Q3
20.90%
Median
9.10%
Q1
4.29%
Min
-13.50%

In the upper quartile for the Communications Equipment industry, CSCO’s Return on Equity of 22.18% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

CFLT vs. CSCO: A comparison of their Return on Equity (TTM) against their respective Software and Communications Equipment industry benchmarks.

Net Profit Margin (TTM)

CFLT

-29.27%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

CFLT has a negative Net Profit Margin of -29.27%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

CSCO

17.97%

Communications Equipment Industry

Max
23.65%
Q3
12.56%
Median
5.62%
Q1
2.50%
Min
-3.09%

A Net Profit Margin of 17.97% places CSCO in the upper quartile for the Communications Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

CFLT vs. CSCO: A comparison of their Net Profit Margin (TTM) against their respective Software and Communications Equipment industry benchmarks.

Operating Profit Margin (TTM)

CFLT

-37.29%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

CFLT has a negative Operating Profit Margin of -37.29%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

CSCO

20.76%

Communications Equipment Industry

Max
25.23%
Q3
13.72%
Median
6.44%
Q1
3.00%
Min
-10.95%

An Operating Profit Margin of 20.76% places CSCO in the upper quartile for the Communications Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

CFLT vs. CSCO: A comparison of their Operating Profit Margin (TTM) against their respective Software and Communications Equipment industry benchmarks.

Profitability at a Glance

SymbolCFLTCSCO
Return on Equity (TTM)-31.29%22.18%
Return on Assets (TTM)-11.52%8.37%
Net Profit Margin (TTM)-29.27%17.97%
Operating Profit Margin (TTM)-37.29%20.76%
Gross Profit Margin (TTM)74.22%64.94%

Financial Strength

Current Ratio (MRQ)

CFLT

3.98

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

CFLT’s Current Ratio of 3.98 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

CSCO

1.00

Communications Equipment Industry

Max
3.33
Q3
2.13
Median
1.55
Q1
1.15
Min
0.91

CSCO’s Current Ratio of 1.00 falls into the lower quartile for the Communications Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

CFLT vs. CSCO: A comparison of their Current Ratio (MRQ) against their respective Software and Communications Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CFLT

1.03

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

CFLT’s leverage is in the upper quartile of the Software industry, with a Debt-to-Equity Ratio of 1.03. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

CSCO

0.60

Communications Equipment Industry

Max
1.44
Q3
0.86
Median
0.53
Q1
0.22
Min
0.00

CSCO’s Debt-to-Equity Ratio of 0.60 is typical for the Communications Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CFLT vs. CSCO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Communications Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

CFLT

-87.07

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

CFLT has a negative Interest Coverage Ratio of -87.07. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

CSCO

22.76

Communications Equipment Industry

Max
55.49
Q3
34.19
Median
7.59
Q1
3.73
Min
-9.94

CSCO’s Interest Coverage Ratio of 22.76 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

CFLT vs. CSCO: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Communications Equipment industry benchmarks.

Financial Strength at a Glance

SymbolCFLTCSCO
Current Ratio (MRQ)3.981.00
Quick Ratio (MRQ)3.830.91
Debt-to-Equity Ratio (MRQ)1.030.60
Interest Coverage Ratio (TTM)-87.0722.76

Growth

Revenue Growth

CFLT vs. CSCO: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CFLT vs. CSCO: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

CFLT

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

CFLT 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

2.32%

Communications Equipment Industry

Max
8.13%
Q3
3.29%
Median
0.94%
Q1
0.00%
Min
0.00%

CSCO’s Dividend Yield of 2.32% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.

CFLT vs. CSCO: A comparison of their Dividend Yield (TTM) against their respective Software and Communications Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

CFLT

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

CFLT 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

63.23%

Communications Equipment Industry

Max
111.16%
Q3
70.91%
Median
30.78%
Q1
0.00%
Min
0.00%

CSCO’s Dividend Payout Ratio of 63.23% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CFLT vs. CSCO: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Communications Equipment industry benchmarks.

Dividend at a Glance

SymbolCFLTCSCO
Dividend Yield (TTM)0.00%2.32%
Dividend Payout Ratio (TTM)0.00%63.23%

Valuation

Price-to-Earnings Ratio (TTM)

CFLT

--

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

P/E Ratio data for CFLT is currently unavailable.

CSCO

27.31

Communications Equipment Industry

Max
103.74
Q3
61.65
Median
26.20
Q1
18.12
Min
4.19

CSCO’s P/E Ratio of 27.31 is within the middle range for the Communications 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.

CFLT vs. CSCO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Communications Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

CFLT

7.22

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

CFLT’s P/S Ratio of 7.22 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CSCO

4.91

Communications Equipment Industry

Max
6.86
Q3
6.24
Median
2.44
Q1
1.02
Min
0.48

CSCO’s P/S Ratio of 4.91 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CFLT vs. CSCO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Communications Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

CFLT

7.98

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

CFLT’s P/B Ratio of 7.98 is within the conventional range for the Software 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.

CSCO

5.74

Communications Equipment Industry

Max
6.28
Q3
5.73
Median
3.32
Q1
2.02
Min
0.42

CSCO’s P/B Ratio of 5.74 is in the upper tier for the Communications Equipment 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.

CFLT vs. CSCO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Communications Equipment industry benchmarks.

Valuation at a Glance

SymbolCFLTCSCO
Price-to-Earnings Ratio (TTM)--27.31
Price-to-Sales Ratio (TTM)7.224.91
Price-to-Book Ratio (MRQ)7.985.74
Price-to-Free Cash Flow Ratio (TTM)155.3320.92