Cisco Systems, Inc. (CSCO) vs International Business Machines Corporation (IBM)
IBM leads on 10 of 17 compared metrics.
A side-by-side comparison of Cisco Systems, Inc. and International Business Machines Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 14, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
CSCO
Cisco Systems, Inc.
$121.10Technology
IBM
International Business Machines Corporation
$272.24Technology
Total return — CSCO vs IBM
growth of $100 · last 30yCSCO +1872.3%IBM +1021.7%CSCO compounded faster
CSCO IBM
CSCO vs IBM: by the numbers
- •CSCO is the larger company ($477.31B vs $255.87B market cap).
- •IBM trades at the lower earnings multiple (24.07 vs 40.37 P/E).
- •CSCO converts more revenue to profit (19.69% vs 15.61% net margin).
- •CSCO grew revenue faster over the past five years (4.58% vs -0.09% CAGR).
- •IBM pays the higher dividend yield (2.47% vs 1.36%).
Which is better, CSCO or IBM?
Metric tally: CSCO 7 · IBM 10It depends on what you're optimizing for:
ValueIBM(lower P/E)
GrowthCSCO(faster 5Y revenue CAGR)
IncomeIBM(higher dividend yield)
QualityCSCO(higher ROIC)
Valuation
| Metric | CSCO | IBM |
|---|---|---|
| P/E ratio | 40.37 | 24.07● |
| Forward P/E | 28.33 | 20.33● |
| P/S ratio | 7.95 | 3.76● |
| P/B ratio | 9.88 | 7.86● |
| PEG ratio | 68.41 | 0.35● |
| EV / EBITDA | 29.07 | 19.49● |
| FCF yield | 2.61% | 5.05%● |
Profitability
| Metric | CSCO | IBM |
|---|---|---|
| Gross margin | 64.33%● | 58.97% |
| Operating margin | 23.36%● | 16.36% |
| Net margin | 19.69%● | 15.61% |
| ROE | 24.47% | 32.61%● |
| ROIC | 11.66%● | 8.57% |
Dividends
| Metric | CSCO | IBM |
|---|---|---|
| Dividend yield | 1.36% | 2.47%● |
| Payout ratio | 64.45% | 59.24% |
Growth (annualized)
| Metric | CSCO | IBM |
|---|---|---|
| Revenue CAGR (5Y) | 4.58%● | -0.09% |
| EPS CAGR (5Y) | -0.69% | 12.59%● |
| FCF CAGR (5Y) | -2.45%● | -3.35% |
| Total return CAGR (5Y) | 20.60%● | 18.04% |
Frequently asked
- Which is better, CSCO or IBM?
- It depends on your goal. value: IBM (lower P/E); growth: CSCO (faster 5Y revenue CAGR); income: IBM (higher dividend yield); quality: CSCO (higher ROIC). Across all compared metrics, IBM leads 10 to 7.
- Is CSCO or IBM cheaper?
- On trailing earnings, IBM is cheaper: CSCO trades at a 40.37 P/E and IBM at 24.07.
- Which has grown faster, CSCO or IBM?
- Over the past five years, CSCO grew revenue faster — CSCO at a 4.58% CAGR versus IBM at -0.09%.
- Does CSCO or IBM pay a bigger dividend?
- CSCO yields 1.36% and IBM yields 2.47% based on trailing dividends and the latest price.
- Is CSCO or IBM more profitable?
- CSCO runs the higher net margin — CSCO at 19.69% versus IBM at 15.61%.
- Which has been the better investment, CSCO or IBM?
- Over the past 10-year, CSCO delivered the higher annualized total return — CSCO at 18.88% versus IBM at 11.01%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Cisco Systems P/E ratioInternational Business Machines P/E ratioCisco Systems dividend yieldInternational Business Machines dividend yieldCisco Systems ROEInternational Business Machines ROECisco Systems operating marginInternational Business Machines operating marginCisco Systems revenue growthInternational Business Machines revenue growthCisco Systems free cash flowInternational Business Machines free cash flow
Cisco Systems & International Business Machines appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 14, 2026.