Contrasting Cisco Systems (NASDAQ:CSCO) & Inseego (NASDAQ:INSG)

Cisco Systems (NASDAQ:CSCO) and Inseego (NASDAQ:INSG) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Earnings & Valuation

This table compares Cisco Systems and Inseego”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cisco Systems	$63.33 billion	6.82	$13.27 billion	$3.34	32.81
Inseego	$166.19 million	0.40	$840,000.00	$0.13	30.92

Cisco Systems has higher revenue and earnings than Inseego. Inseego is trading at a lower price-to-earnings ratio than Cisco Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cisco Systems and Inseego’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cisco Systems	20.95%	30.16%	11.69%
Inseego	-6.41%	-13.38%	-8.89%

Risk & Volatility

Cisco Systems has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Inseego has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Cisco Systems and Inseego, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cisco Systems	0	7	15	2	2.79
Inseego	2	2	3	1	2.38

Cisco Systems currently has a consensus price target of $129.43, indicating a potential upside of 18.10%. Inseego has a consensus price target of $14.60, indicating a potential upside of 263.18%. Given Inseego’s higher possible upside, analysts clearly believe Inseego is more favorable than Cisco Systems.

Insider and Institutional Ownership

73.3% of Cisco Systems shares are held by institutional investors. Comparatively, 34.2% of Inseego shares are held by institutional investors. 0.0% of Cisco Systems shares are held by insiders. Comparatively, 21.7% of Inseego shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Cisco Systems beats Inseego on 12 of the 15 factors compared between the two stocks.

About Cisco Systems

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 Inseego

Inseego Corp. engages in the design and development of cloud-managed wireless wide area network (WAN) and intelligent edge solutions for businesses, consumers, and governments worldwide. The company provides 5G and 4G mobile broadband solutions, such as mobile hotspots under the MiFi brand; and 4G VoLTE products and 4G USB modems. It also offers fixed wireless access solutions, including indoor, outdoor, and industrial routers and gateways. In addition, the company provides Inseego Connect solution for device management; and 5G SD EDGE solution for secure networking enabling corporate managed mobile remote workforce. Further, it offers SaaS solutions, including telematic and asset tracking solution that provides live maps and data to improve driver safety and performance; Inseego Subscribe, a wireless subscriber management solution for carrier’s management of their government and complex enterprise customer subscriptions. The company was founded in 1996 and is based in San Diego, California.