Cisco Systems (CSCO) & Gilat Satellite Networks (GILT) Head-To-Head Analysis
Cisco Systems (NASDAQ: CSCO) and Gilat Satellite Networks (NASDAQ:GILT) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitabiliy, institutional ownership and dividends.
Earnings and Valuation
This table compares Cisco Systems and Gilat Satellite Networks’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cisco Systems||$48.51 billion||3.28||$15.05 billion||$1.99||16.00|
|Gilat Satellite Networks||$290.82 million||1.00||$21.11 million||($0.04)||-133.75|
Cisco Systems has higher revenue and earnings than Gilat Satellite Networks. Gilat Satellite Networks is trading at a lower price-to-earnings ratio than Cisco Systems, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Cisco Systems and Gilat Satellite Networks, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gilat Satellite Networks||0||0||0||0||N/A|
Cisco Systems currently has a consensus target price of $35.38, indicating a potential upside of 11.10%. Given Cisco Systems’ higher possible upside, equities analysts clearly believe Cisco Systems is more favorable than Gilat Satellite Networks.
Volatility and Risk
Cisco Systems has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Gilat Satellite Networks has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
Cisco Systems pays an annual dividend of $1.16 per share and has a dividend yield of 3.6%. Gilat Satellite Networks does not pay a dividend. Cisco Systems pays out 58.3% of its earnings in the form of a dividend.
This table compares Cisco Systems and Gilat Satellite Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gilat Satellite Networks||-0.72%||3.44%||1.93%|
Institutional and Insider Ownership
75.4% of Cisco Systems shares are held by institutional investors. Comparatively, 7.9% of Gilat Satellite Networks shares are held by institutional investors. 0.1% of Cisco Systems shares are held by company insiders. Comparatively, 1.1% of Gilat Satellite Networks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Cisco Systems beats Gilat Satellite Networks on 12 of the 15 factors compared between the two stocks.
About Cisco Systems
Cisco Systems, Inc. designs and sells a range of products, provides services and delivers integrated solutions to develop and connect networks around the world. The Company operates through three geographic segments: Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific, Japan and China (APJC). The Company groups its products and technologies into various categories, such as Switching; Next-Generation Network (NGN) Routing; Collaboration; Data Center; Wireless; Service Provider Video; Security, and Other Products. In addition to its product offerings, the Company provides a range of service offerings, including technical support services and advanced services. The Company delivers its technology and services to its customers as solutions for their priorities, including cloud, video, mobility, security, collaboration and analytics. The Company serves customers, including businesses of all sizes, public institutions, governments and service providers.
About Gilat Satellite Networks
Gilat Satellite Networks Ltd. is a provider of satellite-based broadband communications. The Company operates through three segments: Commercial, Mobility and Services divisions. The Company designs and manufactures satellite ground segment and networking communications equipment, which it sells to its customers either as network components (modems, Block Up converters (BUCs), antennas) or as complete network solutions (which include hubs and related terminals and services) or turnkey projects. The equipment that the Company develops includes commercial Very Small Aperture Terminals (VSAT) systems, defense and homeland security satellite communications systems, solid-state power amplifiers (SSPAs), BUCs, low-profile antennas, on-the-Move/on-the-Pause terminals and modems. The Company’s equipment is used by satellite operators, service providers, telecommunications operators, system integrators, government and defense organizations, large corporations and enterprises.
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