Seek Returns logo

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

Updated on

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

Company Profile

SymbolCSCOGRMN
Company NameCisco Systems, Inc.Garmin Ltd.
CountryUnited StatesSwitzerland
GICS SectorInformation TechnologyConsumer Discretionary
GICS IndustryCommunications EquipmentHousehold Durables
Market Capitalization271.78 billion USD49.12 billion USD
ExchangeNasdaqGSNYSE
Listing DateFebruary 16, 1990December 8, 2000
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CSCO and GRMN 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.

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

Historical Performance at a Glance

SymbolCSCOGRMN
5-Day Price Return1.33%4.14%
13-Week Price Return-0.51%17.97%
26-Week Price Return11.97%13.55%
52-Week Price Return29.18%41.51%
Month-to-Date Return0.48%1.82%
Year-to-Date Return16.13%19.37%
10-Day Avg. Volume21.60M0.90M
3-Month Avg. Volume19.74M0.86M
3-Month Volatility18.80%24.61%
Beta0.871.05

Profitability

Return on Equity (TTM)

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.

GRMN

19.82%

Household Durables Industry

Max
27.70%
Q3
17.40%
Median
12.87%
Q1
7.33%
Min
-5.50%

In the upper quartile for the Household Durables industry, GRMN’s Return on Equity of 19.82% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

Net Profit Margin (TTM)

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.

GRMN

23.21%

Household Durables Industry

Max
16.37%
Q3
9.18%
Median
6.63%
Q1
3.85%
Min
-3.29%

GRMN’s Net Profit Margin of 23.21% is exceptionally high, placing it well beyond the typical range for the Household Durables industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

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

Operating Profit Margin (TTM)

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.

GRMN

26.02%

Household Durables Industry

Max
21.32%
Q3
12.25%
Median
9.93%
Q1
5.57%
Min
-1.07%

GRMN’s Operating Profit Margin of 26.02% is exceptionally high, placing it well above the typical range for the Household Durables industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

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

Profitability at a Glance

SymbolCSCOGRMN
Return on Equity (TTM)22.18%19.82%
Return on Assets (TTM)8.37%16.05%
Net Profit Margin (TTM)17.97%23.21%
Operating Profit Margin (TTM)20.76%26.02%
Gross Profit Margin (TTM)64.94%58.94%

Financial Strength

Current Ratio (MRQ)

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.

GRMN

3.01

Household Durables Industry

Max
6.09
Q3
3.79
Median
2.54
Q1
1.23
Min
0.83

GRMN’s Current Ratio of 3.01 aligns with the median group of the Household Durables industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

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.

GRMN

0.00

Household Durables Industry

Max
1.89
Q3
0.87
Median
0.34
Q1
0.19
Min
0.00

Falling into the lower quartile for the Household Durables industry, GRMN’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

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

Interest Coverage Ratio (TTM)

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.

GRMN

73.26

Household Durables Industry

Max
140.40
Q3
77.14
Median
24.53
Q1
5.69
Min
-17.01

GRMN’s Interest Coverage Ratio of 73.26 is positioned comfortably within the norm for the Household Durables industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolCSCOGRMN
Current Ratio (MRQ)1.003.01
Quick Ratio (MRQ)0.911.88
Debt-to-Equity Ratio (MRQ)0.600.00
Interest Coverage Ratio (TTM)22.7673.26

Growth

Revenue Growth

CSCO vs. GRMN: 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

CSCO vs. GRMN: 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)

CSCO

2.37%

Communications Equipment Industry

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

CSCO’s Dividend Yield of 2.37% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.

GRMN

1.24%

Household Durables Industry

Max
9.61%
Q3
3.97%
Median
2.00%
Q1
0.18%
Min
0.00%

GRMN’s Dividend Yield of 1.24% is consistent with its peers in the Household Durables industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

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.

GRMN

38.63%

Household Durables Industry

Max
129.55%
Q3
65.55%
Median
42.15%
Q1
6.45%
Min
0.00%

GRMN’s Dividend Payout Ratio of 38.63% is within the typical range for the Household Durables industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolCSCOGRMN
Dividend Yield (TTM)2.37%1.24%
Dividend Payout Ratio (TTM)63.23%38.63%

Valuation

Price-to-Earnings Ratio (TTM)

CSCO

26.70

Communications Equipment Industry

Max
103.74
Q3
61.65
Median
26.20
Q1
18.12
Min
4.19

CSCO’s P/E Ratio of 26.70 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.

GRMN

31.22

Household Durables Industry

Max
33.67
Q3
19.33
Median
12.58
Q1
9.62
Min
6.48

A P/E Ratio of 31.22 places GRMN in the upper quartile for the Household Durables industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

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

Price-to-Sales Ratio (TTM)

CSCO

4.80

Communications Equipment Industry

Max
6.86
Q3
6.24
Median
2.44
Q1
1.02
Min
0.48

CSCO’s P/S Ratio of 4.80 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.

GRMN

7.25

Household Durables Industry

Max
2.54
Q3
1.39
Median
0.90
Q1
0.54
Min
0.19

With a P/S Ratio of 7.25, GRMN trades at a valuation that eclipses even the highest in the Household Durables industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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

Price-to-Book Ratio (MRQ)

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.

GRMN

4.95

Household Durables Industry

Max
3.26
Q3
2.01
Median
1.38
Q1
1.00
Min
0.58

At 4.95, GRMN’s P/B Ratio is at an extreme premium to the Household Durables 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.

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

Valuation at a Glance

SymbolCSCOGRMN
Price-to-Earnings Ratio (TTM)26.7031.22
Price-to-Sales Ratio (TTM)4.807.25
Price-to-Book Ratio (MRQ)5.744.95
Price-to-Free Cash Flow Ratio (TTM)20.4543.46