Cisco Systems (NASDAQ:CSCO – Get Free Report) and Radcom (NASDAQ:RDCM – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Risk and Volatility
Cisco Systems has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Radcom has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
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Profitability
This table compares Cisco Systems and Radcom’s net margins, return on equity and return on assets.
Institutional and Insider Ownership
73.3% of Cisco Systems shares are owned by institutional investors. Comparatively, 48.3% of Radcom shares are owned by institutional investors. 0.0% of Cisco Systems shares are owned by insiders. Comparatively, 69.0% of Radcom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and price targets for Cisco Systems and Radcom, as provided by MarketBeat.
Cisco Systems presently has a consensus target price of $74.53, indicating a potential upside of 10.34%. Radcom has a consensus target price of $18.00, indicating a potential upside of 22.62%. Given Radcom’s stronger consensus rating and higher possible upside, analysts plainly believe Radcom is more favorable than Cisco Systems.
Earnings & Valuation
This table compares Cisco Systems and Radcom”s top-line revenue, earnings per share and valuation.
Cisco Systems has higher revenue and earnings than Radcom. Radcom is trading at a lower price-to-earnings ratio than Cisco Systems, indicating that it is currently the more affordable of the two stocks.
Summary
Cisco Systems beats Radcom on 12 of the 15 factors compared between the two stocks.
About Cisco Systems
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Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization. In addition, it provides Internet for the future product consists of routed optical networking, 5G, silicon, and optics solutions; collaboration products, such as meetings, collaboration devices, calling, contact center, and communication platform as a service; end-to-end security product consists of network security, cloud security, security endpoints, unified threat management, and zero trust; and optimized application experiences products including full stack observability and network assurance. Further, the company offers a range of service and support options for its customers, including technical support and advanced services and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.
About Radcom
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RADCOM Ltd. provides 5G ready cloud-native, network intelligence, and service assurance solutions for telecom operators or communication service providers (CSPs). It offers RADCOM ACE, including RADCOM Service Assurance, a cloud-native, 5G-ready, and virtualized service assurance solutions, which allows telecom operators to gain end-to-end network visibility and customer experience insights across all networks; RADCOM Network Visibility, a cloud-native network packet broker and filtering solution that allows CSPs to manage network traffic at scale across multiple cloud environments, and control the visibility layer to perform analysis of select datasets; and RADCOM Network Insights, a business intelligence solution that offers insights for multiple use cases enabled by data captured and correlated through RADCOM Network Visibility and RADCOM Service Assurance. The company also provides solutions for mobile and fixed networks, such as 5G, long term evolution (LTE), voice over LTE, voice over Wifi, IP multimedia subsystem, voice over IP, and universal mobile telecommunication service. It sells its products directly to customers through executives and sales representatives, as well as through a network of distributors and resellers in North America, Asia Pacific, Latin America, Europe, the Middle East, Africa, and Israel. The company was formerly known as Big Blue Catalogue Ltd. and changed its name to RADCOM Ltd. in 1989. RADCOM Ltd. was incorporated in 1985 and is headquartered in Tel Aviv, Israel.