CSCO vs. OKTA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CSCO and OKTA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CSCO | OKTA |
|---|---|---|
| Company Name | Cisco Systems, Inc. | Okta, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Communications Equipment | IT Services |
| Market Capitalization | 278.78 billion USD | 15.93 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | February 16, 1990 | April 7, 2017 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CSCO and OKTA 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.
Historical Performance at a Glance
| Symbol | CSCO | OKTA |
|---|---|---|
| 5-Day Price Return | 0.72% | -2.78% |
| 13-Week Price Return | 14.16% | -26.73% |
| 26-Week Price Return | 13.06% | -6.66% |
| 52-Week Price Return | 56.93% | -1.13% |
| Month-to-Date Return | 3.41% | -6.97% |
| Year-to-Date Return | 18.92% | 15.46% |
| 10-Day Avg. Volume | 23.90M | 2.92M |
| 3-Month Avg. Volume | 21.37M | 3.92M |
| 3-Month Volatility | 19.90% | 43.77% |
| Beta | 0.98 | 0.83 |
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.
OKTA
2.05%
IT Services Industry
- Max
- 29.51%
- Q3
- 16.98%
- Median
- 13.47%
- Q1
- 7.93%
- Min
- -3.97%
OKTA’s Return on Equity of 2.05% is in the lower quartile for the IT Services industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
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.
OKTA
4.85%
IT Services Industry
- Max
- 19.82%
- Q3
- 11.49%
- Median
- 6.67%
- Q1
- 3.61%
- Min
- -4.62%
OKTA’s Net Profit Margin of 4.85% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
OKTA
1.16%
IT Services Industry
- Max
- 21.69%
- Q3
- 14.50%
- Median
- 10.06%
- Q1
- 6.98%
- Min
- 0.06%
OKTA’s Operating Profit Margin of 1.16% is in the lower quartile for the IT Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | CSCO | OKTA |
|---|---|---|
| Return on Equity (TTM) | 21.50% | 2.05% |
| Return on Assets (TTM) | 8.01% | 1.41% |
| Net Profit Margin (TTM) | 17.60% | 4.85% |
| Operating Profit Margin (TTM) | 20.30% | 1.16% |
| Gross Profit Margin (TTM) | 65.24% | 76.69% |
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.
OKTA
1.47
IT Services Industry
- Max
- 2.42
- Q3
- 1.81
- Median
- 1.47
- Q1
- 1.09
- Min
- 0.44
OKTA’s Current Ratio of 1.47 aligns with the median group of the IT Services industry, indicating that its short-term liquidity is in line with its sector peers.
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.
OKTA
0.13
IT Services Industry
- Max
- 2.33
- Q3
- 1.17
- Median
- 0.54
- Q1
- 0.15
- Min
- 0.00
Falling into the lower quartile for the IT Services industry, OKTA’s Debt-to-Equity Ratio of 0.13 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
OKTA
-9.31
IT Services Industry
- Max
- 144.50
- Q3
- 84.49
- Median
- 13.76
- Q1
- 2.59
- Min
- -28.13
OKTA has a negative Interest Coverage Ratio of -9.31. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | CSCO | OKTA |
|---|---|---|
| Current Ratio (MRQ) | 0.95 | 1.47 |
| Quick Ratio (MRQ) | 0.87 | 1.41 |
| Debt-to-Equity Ratio (MRQ) | 0.64 | 0.13 |
| Interest Coverage Ratio (TTM) | 936.58 | -9.31 |
Growth
Revenue Growth
EPS Growth
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.
OKTA
0.00%
IT Services Industry
- Max
- 2.80%
- Q3
- 1.74%
- Median
- 0.62%
- Q1
- 0.00%
- Min
- 0.00%
OKTA 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.
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.
OKTA
0.00%
IT Services Industry
- Max
- 147.75%
- Q3
- 63.58%
- Median
- 24.63%
- Q1
- 0.00%
- Min
- 0.00%
OKTA 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.
Dividend at a Glance
| Symbol | CSCO | OKTA |
|---|---|---|
| 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.
OKTA
122.71
IT Services Industry
- Max
- 41.55
- Q3
- 31.54
- Median
- 23.25
- Q1
- 18.12
- Min
- 6.57
At 122.71, OKTA’s P/E Ratio is exceptionally high, exceeding the typical maximum for the IT Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
OKTA
5.95
IT Services Industry
- Max
- 6.61
- Q3
- 4.37
- Median
- 2.02
- Q1
- 1.20
- Min
- 0.19
OKTA’s P/S Ratio of 5.95 is in the upper echelon for the IT Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
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.
OKTA
2.97
IT Services Industry
- Max
- 11.19
- Q3
- 6.38
- Median
- 3.47
- Q1
- 2.31
- Min
- 0.96
OKTA’s P/B Ratio of 2.97 is within the conventional range for the IT Services 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.
Valuation at a Glance
| Symbol | CSCO | OKTA |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 28.47 | 122.71 |
| Price-to-Sales Ratio (TTM) | 5.01 | 5.95 |
| Price-to-Book Ratio (MRQ) | 4.92 | 2.97 |
| Price-to-Free Cash Flow Ratio (TTM) | 21.77 | 21.16 |