Seek Returns logo

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

Updated on

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

Company Profile

SymbolCSCOIONQ
Company NameCisco Systems, Inc.IonQ, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentTechnology Hardware, Storage & Peripherals
Market Capitalization278.78 billion USD12.23 billion USD
ExchangeNasdaqGSNYSE
Listing DateFebruary 16, 1990January 4, 2021
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CSCO and IONQ 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. IONQ: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCSCOIONQ
5-Day Price Return0.72%1.78%
13-Week Price Return14.16%25.30%
26-Week Price Return13.06%-0.15%
52-Week Price Return56.93%513.24%
Month-to-Date Return3.41%3.36%
Year-to-Date Return18.92%-1.34%
10-Day Avg. Volume23.90M22.93M
3-Month Avg. Volume21.37M21.86M
3-Month Volatility19.90%98.83%
Beta0.982.61

Profitability

Return on Equity (TTM)

CSCO

21.50%

Communications Equipment Industry

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

In the upper quartile for the Communications 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.

IONQ

-67.52%

Technology Hardware, Storage & Peripherals Industry

Max
47.24%
Q3
29.40%
Median
9.11%
Q1
6.06%
Min
-0.79%

IONQ has a negative Return on Equity of -67.52%. 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 vs. IONQ: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Net Profit Margin (TTM)

CSCO

17.60%

Communications Equipment Industry

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

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

IONQ

-885.21%

Technology Hardware, Storage & Peripherals Industry

Max
13.86%
Q3
8.17%
Median
4.62%
Q1
3.65%
Min
-0.21%

IONQ has a negative Net Profit Margin of -885.21%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

CSCO vs. IONQ: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Operating Profit Margin (TTM)

CSCO

20.30%

Communications Equipment Industry

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

An Operating Profit Margin of 20.30% 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.

IONQ

-700.61%

Technology Hardware, Storage & Peripherals Industry

Max
17.80%
Q3
10.33%
Median
6.31%
Q1
4.86%
Min
2.53%

IONQ has a negative Operating Profit Margin of -700.61%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

CSCO vs. IONQ: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

SymbolCSCOIONQ
Return on Equity (TTM)21.50%-67.52%
Return on Assets (TTM)8.01%-57.89%
Net Profit Margin (TTM)17.60%-885.21%
Operating Profit Margin (TTM)20.30%-700.61%
Gross Profit Margin (TTM)65.24%54.54%

Financial Strength

Current Ratio (MRQ)

CSCO

0.95

Communications Equipment Industry

Max
1.72
Q3
1.72
Median
1.46
Q1
1.18
Min
0.93

CSCO’s Current Ratio of 0.95 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.

IONQ

7.76

Technology Hardware, Storage & Peripherals Industry

Max
2.47
Q3
1.98
Median
1.40
Q1
1.26
Min
0.70

IONQ’s Current Ratio of 7.76 is exceptionally high, placing it well outside the typical range for the Technology Hardware, Storage & Peripherals 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.

CSCO vs. IONQ: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CSCO

0.64

Communications Equipment Industry

Max
1.55
Q3
0.92
Median
0.55
Q1
0.30
Min
0.00

CSCO’s Debt-to-Equity Ratio of 0.64 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.

IONQ

0.00

Technology Hardware, Storage & Peripherals Industry

Max
1.47
Q3
0.93
Median
0.32
Q1
0.19
Min
0.00

Falling into the lower quartile for the Technology Hardware, Storage & Peripherals industry, IONQ’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. IONQ: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Interest Coverage Ratio (TTM)

CSCO

936.58

Communications Equipment Industry

Max
181.73
Q3
113.63
Median
7.59
Q1
3.82
Min
-5.39

With an Interest Coverage Ratio of 936.58, CSCO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Communications Equipment industry. This stems from either robust earnings or a conservative debt load.

IONQ

-23.93

Technology Hardware, Storage & Peripherals Industry

Max
204.63
Q3
90.22
Median
21.70
Q1
6.79
Min
-23.93

IONQ has a negative Interest Coverage Ratio of -23.93. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

CSCO vs. IONQ: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

SymbolCSCOIONQ
Current Ratio (MRQ)0.957.76
Quick Ratio (MRQ)0.877.26
Debt-to-Equity Ratio (MRQ)0.640.00
Interest Coverage Ratio (TTM)936.58-23.93

Growth

Revenue Growth

CSCO vs. IONQ: 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. IONQ: 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

2.30%

Communications Equipment Industry

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

CSCO’s Dividend Yield of 2.30% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.

IONQ

0.00%

Technology Hardware, Storage & Peripherals Industry

Max
4.50%
Q3
3.66%
Median
1.90%
Q1
0.00%
Min
0.00%

IONQ 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 vs. IONQ: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend Payout Ratio (TTM)

CSCO

65.54%

Communications Equipment Industry

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

CSCO’s Dividend Payout Ratio of 65.54% is in the upper quartile for the Communications 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.

IONQ

0.00%

Technology Hardware, Storage & Peripherals Industry

Max
142.87%
Q3
66.07%
Median
42.79%
Q1
0.00%
Min
0.00%

IONQ 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 vs. IONQ: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

SymbolCSCOIONQ
Dividend Yield (TTM)2.30%0.00%
Dividend Payout Ratio (TTM)65.54%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

CSCO

28.47

Communications Equipment Industry

Max
57.30
Q3
47.92
Median
27.50
Q1
17.89
Min
13.89

CSCO’s P/E Ratio of 28.47 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.

IONQ

--

Technology Hardware, Storage & Peripherals Industry

Max
43.16
Q3
27.56
Median
17.85
Q1
12.48
Min
6.21

P/E Ratio data for IONQ is currently unavailable.

CSCO vs. IONQ: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Price-to-Sales Ratio (TTM)

CSCO

5.01

Communications Equipment Industry

Max
11.03
Q3
5.53
Median
2.20
Q1
0.99
Min
0.40

CSCO’s P/S Ratio of 5.01 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.

IONQ

233.58

Technology Hardware, Storage & Peripherals Industry

Max
4.27
Q3
1.99
Median
0.93
Q1
0.45
Min
0.04

With a P/S Ratio of 233.58, IONQ trades at a valuation that eclipses even the highest in the Technology Hardware, Storage & Peripherals industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

CSCO vs. IONQ: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Price-to-Book Ratio (MRQ)

CSCO

4.92

Communications Equipment Industry

Max
9.66
Q3
5.60
Median
3.73
Q1
2.67
Min
0.30

CSCO’s P/B Ratio of 4.92 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.

IONQ

9.68

Technology Hardware, Storage & Peripherals Industry

Max
12.51
Q3
6.11
Median
1.73
Q1
1.01
Min
0.31

IONQ’s P/B Ratio of 9.68 is in the upper tier for the Technology Hardware, Storage & Peripherals 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 vs. IONQ: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

SymbolCSCOIONQ
Price-to-Earnings Ratio (TTM)28.47--
Price-to-Sales Ratio (TTM)5.01233.58
Price-to-Book Ratio (MRQ)4.929.68
Price-to-Free Cash Flow Ratio (TTM)21.77--