Which Is a Better Investment, Cisco Systems Inc or Ubiquiti Inc Stock?

By AAII Staff
September 09, 2026
Large versus logo comparing two stocks in the same industry
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Sifting through countless of stocks in the Communications Equipment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Cisco Systems, Inc. or Ubiquiti Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Cisco Systems, Inc. and Ubiquiti Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Cisco Systems, Inc. and Ubiquiti Inc.

Cisco Systems, Inc. designs, develops, and sells technologies to power, help, secure, and draw insights from the internet in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company provides data center switching; network security, identity and access management, and secure access service edge; identity and agentic security solutions; interconnects public and private wireline and mobile networks, delivering connectivity to campus, data center, and branch networks; WEBEX suite, collaboration devices, and contact center; communication platform as a service software, including perpetual licenses, subscription arrangements, and hardware solutions; network assurance and observability suite; accelerated issue resolution, software support, and hardware replacement; professional services, such as planning, design, implementation, and high-value consulting; service and support packages, financing, and managed network services; and regional, national, and international wireline carriers, webscale products, internet, and cable. It also provides wireless products, including indoor and outdoor coverage designed for seamless roaming use of voice, video, and data applications; end-to-end collaboration solutions through cloud, on-premise, or within hybrid cloud environments. In addition, it offers technical support services. The company serves businesses, public institutions, governments, and service providers. It sells its products and services directly, through systems integrators, service providers, and other thirdy-party resellers, and distributors. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.

Ubiquiti Inc. engages in the development of networking technology for service providers, enterprises, and consumers in North America, Europe, the Middle East, Africa, Asia Pacific, South America. The company develops technology platforms for high-capacity distributed Internet access and unified information technology. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing and related software; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, door access systems, and other WLAN products. It also provides technology platforms, such as UniFi Cloud Gateway, an Enterprise class internet and security gateway device; UniFi Wi-Fi, an enterprise Wi-Fi system; UniFi Protect, a video surveillance platform; UniFi Switch that deliver performance, switching, and power of ethernet support for enterprise networks; UniFi Access, a door access solution; UniFi Talk, a plug-and-play phone system and VoIP subscription service. In addition, the company offers airMAX, which include proprietary protocols that contain technologies for minimizing signal noise; airFiber, a wireless backhauls point-to-point radio system; UFiber GPON, a plug and play fiber network technology to build high speed fiber internet networks; and Wave, a technology platform. Further, the company provides base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; and antennas. It serves customers through a network of distributors, online retailers, and direct to customers through webstores. The company was formerly known as Ubiquiti Networks, Inc. and changed its name to Ubiquiti Inc. in August 2019. Ubiquiti Inc. was incorporated in 2003 and is headquartered in New York, New York.

Latest Communications Equipment and Cisco Systems, Inc., Ubiquiti Inc. Stock News

As of September 9, 2026, Cisco Systems, Inc. had a $431.4 billion market capitalization, compared to the Communications Equipment median of $352.3 million. Cisco Systems, Inc.’s stock is up 42.1% in 2026, down 0.3% in the previous five trading days and up 63.62% in the past year.

Currently, Cisco Systems, Inc.’s price-earnings ratio is 32.9. Cisco Systems, Inc.’s trailing 12-month revenue is $63.3 billion with a 21.0% net profit margin. Year-over-year quarterly sales growth most recently was 17.6%. Analysts expect adjusted earnings to reach $5.143 per share for the current fiscal year. Cisco Systems, Inc. currently has a 1.5% dividend yield.

As of September 9, 2026, Ubiquiti Inc. had a $31.5 billion market cap, putting it in the 90th percentile of all stocks. Ubiquiti Inc.’s stock is down 5.9% in 2026, down 11.3% in the previous five trading days and down 10.79% in the past year.

Currently, Ubiquiti Inc.’s price-earnings ratio is 32.8. Ubiquiti Inc.’s trailing 12-month revenue is $3.3 billion with a 29.3% net profit margin. Year-over-year quarterly sales growth most recently was 23.5%. Analysts expect adjusted earnings to reach $17.714 per share for the current fiscal year. Ubiquiti Inc. currently has a 0.8% dividend yield.

How We Compare Cisco Systems, Inc. and Ubiquiti Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Cisco Systems, Inc. and Ubiquiti Inc.’s stock grades to see how they measure up against one another.

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Cisco Systems, Inc. and Ubiquiti Inc. Stock Value Grades

Company Ticker Value
Cisco Systems, Inc. CSCO F
Ubiquiti Inc. UI F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Cisco Systems, Inc. has a Value Score of 13, which is Ultra Expensive. Ubiquiti Inc. has a Value Score of 11, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Cisco Systems, Inc. or Ubiquiti Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Cisco Systems, Inc. or Ubiquiti Inc. is the better investment when it comes to value.

Cisco Systems, Inc. and Ubiquiti Inc. Growth Grades

Company Ticker Growth
Cisco Systems, Inc. CSCO B
Ubiquiti Inc. UI D

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Cisco Systems, Inc. has a Growth Score of 73, which is Strong. Ubiquiti Inc. has a Growth Score of 38, which is Weak.

The Growth Grade Winner: Cisco Systems, Inc.

As you can clearly see from the Growth Grade breakdown above, Cisco Systems, Inc. has a more attractive growth grade than Ubiquiti Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Cisco Systems, Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Cisco Systems, Inc. and Ubiquiti Inc.’s Quality Grades

Company Ticker Quality
Cisco Systems, Inc. CSCO A
Ubiquiti Inc. UI A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Cisco Systems, Inc. has a Quality Score of 84, which is Very Strong. Ubiquiti Inc. has a Quality Score of 91, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both Cisco Systems, Inc. and Ubiquiti Inc. have a grade of A. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other Cisco Systems, Inc. and Ubiquiti Inc. Grades

In addition to Value, Quality and Growth, A+ Investor also provides grades for Momentum and Estimate Revisions.

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Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Cisco Systems, Inc. and Ubiquiti Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Cisco Systems, Inc. or Ubiquiti Inc. Stock?

Overall, Cisco Systems, Inc. stock has a Value Score of 13, Growth Score of 73 and Quality Score of 84.

Ubiquiti Inc. stock has a Value Score of 11, Growth Score of 38 and Quality Score of 91.

Comparing Cisco Systems, Inc. and Ubiquiti Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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