Seek Returns logo

CIEN vs. NVDA: A Head-to-Head Stock Comparison

Updated on

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

Company Profile

SymbolCIENNVDA
Company NameCiena CorporationNVIDIA Corporation
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentSemiconductors & Semiconductor Equipment
Market Capitalization13.38 billion USD4,428.54 billion USD
ExchangeNYSENasdaqGS
Listing DateFebruary 7, 1997January 22, 1999
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CIEN and NVDA 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.

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

Historical Performance at a Glance

SymbolCIENNVDA
5-Day Price Return-0.55%0.45%
13-Week Price Return19.81%47.63%
26-Week Price Return1.65%41.12%
52-Week Price Return95.18%66.57%
Month-to-Date Return1.96%2.09%
Year-to-Date Return11.61%35.22%
10-Day Avg. Volume1.61M160.72M
3-Month Avg. Volume2.05M217.70M
3-Month Volatility40.51%29.99%
Beta1.072.16

Profitability

Return on Equity (TTM)

CIEN

3.72%

Communications Equipment Industry

Max
32.05%
Q3
19.58%
Median
11.77%
Q1
2.23%
Min
-11.93%

CIEN’s Return on Equity of 3.72% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

NVDA

106.92%

Semiconductors & Semiconductor Equipment Industry

Max
52.74%
Q3
23.49%
Median
11.60%
Q1
3.23%
Min
-20.69%

NVDA’s Return on Equity of 106.92% is exceptionally high, placing it well beyond the typical range for the Semiconductors & Semiconductor Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

CIEN vs. NVDA: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Net Profit Margin (TTM)

CIEN

2.46%

Communications Equipment Industry

Max
23.65%
Q3
14.32%
Median
5.31%
Q1
1.45%
Min
-12.72%

CIEN’s Net Profit Margin of 2.46% is aligned with the median group of its peers in the Communications Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

NVDA

51.69%

Semiconductors & Semiconductor Equipment Industry

Max
44.17%
Q3
22.38%
Median
11.95%
Q1
3.21%
Min
-25.16%

NVDA’s Net Profit Margin of 51.69% is exceptionally high, placing it well beyond the typical range for the Semiconductors & Semiconductor Equipment industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

CIEN vs. NVDA: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Operating Profit Margin (TTM)

CIEN

4.66%

Communications Equipment Industry

Max
42.27%
Q3
18.90%
Median
6.21%
Q1
2.97%
Min
-20.72%

CIEN’s Operating Profit Margin of 4.66% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

NVDA

58.03%

Semiconductors & Semiconductor Equipment Industry

Max
58.03%
Q3
27.84%
Median
12.45%
Q1
5.15%
Min
-28.61%

An Operating Profit Margin of 58.03% places NVDA in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

CIEN vs. NVDA: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Profitability at a Glance

SymbolCIENNVDA
Return on Equity (TTM)3.72%106.92%
Return on Assets (TTM)1.87%73.45%
Net Profit Margin (TTM)2.46%51.69%
Operating Profit Margin (TTM)4.66%58.03%
Gross Profit Margin (TTM)41.94%70.52%

Financial Strength

Current Ratio (MRQ)

CIEN

3.40

Communications Equipment Industry

Max
1.72
Q3
1.72
Median
1.46
Q1
1.18
Min
0.93

CIEN’s Current Ratio of 3.40 is exceptionally high, placing it well outside the typical range for the Communications Equipment industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

NVDA

3.39

Semiconductors & Semiconductor Equipment Industry

Max
8.42
Q3
4.70
Median
2.75
Q1
2.07
Min
1.04

NVDA’s Current Ratio of 3.39 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

CIEN vs. NVDA: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CIEN

0.55

Communications Equipment Industry

Max
1.55
Q3
0.92
Median
0.55
Q1
0.30
Min
0.00

CIEN’s Debt-to-Equity Ratio of 0.55 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.

NVDA

0.10

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.45
Median
0.22
Q1
0.01
Min
0.00

NVDA’s Debt-to-Equity Ratio of 0.10 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CIEN vs. NVDA: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

CIEN

3.65

Communications Equipment Industry

Max
181.73
Q3
113.63
Median
7.59
Q1
3.82
Min
-5.39

In the lower quartile for the Communications Equipment industry, CIEN’s Interest Coverage Ratio of 3.65 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

NVDA

75.66

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
81.10
Median
27.22
Q1
7.28
Min
-4.26

NVDA’s Interest Coverage Ratio of 75.66 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

CIEN vs. NVDA: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Financial Strength at a Glance

SymbolCIENNVDA
Current Ratio (MRQ)3.403.39
Quick Ratio (MRQ)2.272.86
Debt-to-Equity Ratio (MRQ)0.550.10
Interest Coverage Ratio (TTM)3.6575.66

Growth

Revenue Growth

CIEN vs. NVDA: 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

CIEN vs. NVDA: 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)

CIEN

0.00%

Communications Equipment Industry

Max
3.88%
Q3
2.75%
Median
0.93%
Q1
0.00%
Min
0.00%

CIEN 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.

NVDA

0.02%

Semiconductors & Semiconductor Equipment Industry

Max
4.16%
Q3
1.78%
Median
0.74%
Q1
0.00%
Min
0.00%

NVDA’s Dividend Yield of 0.02% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.

CIEN vs. NVDA: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

CIEN

0.00%

Communications Equipment Industry

Max
111.16%
Q3
55.91%
Median
28.42%
Q1
0.00%
Min
0.00%

CIEN 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.

NVDA

1.28%

Semiconductors & Semiconductor Equipment Industry

Max
196.12%
Q3
87.72%
Median
26.57%
Q1
0.00%
Min
0.00%

NVDA’s Dividend Payout Ratio of 1.28% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CIEN vs. NVDA: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Dividend at a Glance

SymbolCIENNVDA
Dividend Yield (TTM)0.00%0.02%
Dividend Payout Ratio (TTM)0.00%1.28%

Valuation

Price-to-Earnings Ratio (TTM)

CIEN

131.48

Communications Equipment Industry

Max
57.30
Q3
47.92
Median
27.50
Q1
17.89
Min
13.89

At 131.48, CIEN’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Communications Equipment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

NVDA

58.13

Semiconductors & Semiconductor Equipment Industry

Max
109.37
Q3
57.11
Median
28.95
Q1
22.13
Min
11.14

A P/E Ratio of 58.13 places NVDA in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

CIEN vs. NVDA: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

CIEN

3.23

Communications Equipment Industry

Max
11.03
Q3
5.53
Median
2.20
Q1
0.99
Min
0.40

CIEN’s P/S Ratio of 3.23 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.

NVDA

30.05

Semiconductors & Semiconductor Equipment Industry

Max
16.09
Q3
10.10
Median
4.82
Q1
2.60
Min
0.93

With a P/S Ratio of 30.05, NVDA trades at a valuation that eclipses even the highest in the Semiconductors & Semiconductor Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

CIEN vs. NVDA: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

CIEN

3.73

Communications Equipment Industry

Max
9.66
Q3
5.60
Median
3.73
Q1
2.67
Min
0.30

CIEN’s P/B Ratio of 3.73 is within the conventional range for the Communications 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.

NVDA

31.64

Semiconductors & Semiconductor Equipment Industry

Max
13.56
Q3
6.75
Median
3.68
Q1
1.89
Min
0.60

At 31.64, NVDA’s P/B Ratio is at an extreme premium to the Semiconductors & Semiconductor Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

CIEN vs. NVDA: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Valuation at a Glance

SymbolCIENNVDA
Price-to-Earnings Ratio (TTM)131.4858.13
Price-to-Sales Ratio (TTM)3.2330.05
Price-to-Book Ratio (MRQ)3.7331.64
Price-to-Free Cash Flow Ratio (TTM)29.2661.93