Investment Thesis
Cisco Systems (NASDAQ:CSCO) and IBM Corp. (NYSE:IBM) are both respectable technology companies. Cisco provides communication equipment, while IBM provides IT hardware, software and services mainly to enterprise. Both companies had glorious days in the past but are facing the pain of revenue decline as they transition their businesses to seek higher-growth opportunities. IBM had a declining revenue for 21 consecutive quarters due to its declining legacy business. Similarly, Cisco saw its revenue declining for 7 straight quarters as the company continues its transition to a software-based networking model based on security, analytics and machine learning.
In this article, we will take a closer look at both companies to evaluate their fundamentals, financial metrics, valuation and future outlook.
