CISCO SYSTEMS, INC. vs WESTERN DIGITAL CORPORATION, two Computer Hardware stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
The defining number is 40.7: Western Digital's net margin, a drive maker at cycle peak currently keeping twice as much of each revenue dollar as Cisco's 19.7%. Nearly identical multiples sit on top, 34.5 and 37.7 times earnings, which means the market is charging franchise prices for both the franchise and the cycle. Cisco's answer is repeatability, a 63.6% gross margin, a 1.4% dividend, decades of installed-base economics; WDC's is momentum, returns on assets of 31.9% against 9.5%. Someone is mispriced here only if the storage cycle behaves like previous ones. The identical multiples are a bet that it will not.
Comparison updated 2026-07-10.
| Metric | CSCO | WDC |
|---|---|---|
| Price | $113.45 | $578.52 |
| Market cap | $451.8B | $223.9B |
| Sector | Computer Hardware | Computer Hardware |
| Stage | Mature | Growth |
| P/E | 37.7 | 34.5 |
| P/B | 9.25 | 23.13 |
| P/S | 7.44 | 19.01 |
| EV/EBITDA | 33.8 | 61.5 |
| Revenue growth | +9.2% | +32.0% |
| Gross margin | 63.6% | 50.2% |
| Operating margin | 25.0% | 35.7% |
| Net margin | 19.7% | 40.7% |
| Return on equity | 24.5% | 49.6% |
| Return on assets | 9.5% | 31.9% |
| Return on invested capital | 14.2% | 26.5% |
| FCF yield | 2.6% | 1.3% |
| Dividend yield | 1.4% | 0.0% |
| Debt / equity | 0.71 | 0.33 |
| Current ratio | 0.92 | 1.49 |
| Altman Z (solvency) | 4.10 | 7.86 |
| Piotroski F (quality) | 6 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.