Is Corning Stock A Better Pick Over This Sector Peer?

We believe that Corning stock (NYSE: GLW) is currently a better pick over its sector peer Cisco stock (NASDAQ
NDAQ
: CSCO), given its better prospects and a relatively lower valuation of 1.9x trailing revenues vs. 3.8x for Cisco. This valuation gap can be attributed to Cisco’s superior profitability and lower financial risk, as discussed below.

Looking at stock returns, GLW, with -14% returns this year, has fared better than CSCO stock, down 25%, and the broader S&P500 index, down 19% over this period. There is more to the comparison, and in the sections below, we discuss why we believe GLW stock will offer better returns than CSCO stock in the next three years. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Corning vs. Cisco: Which Stock Is A Better Bet? Parts of the analysis are summarized below.