LIVE
HPE
Hewlett Packard Enterprise Company · Technology
$47.41
+45.34% this month
VERSUS
⟷
COMPARE
CSCO
Cisco Systems, Inc. · Technology
$119.54
+3.61% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
HPE
4
CSCO
1
Comparison scoreboard
HPE LEADS 4/5AI Score
HPE ✓62.4
CSCO 51.4
1Y Return
HPE ✓+164.86%
CSCO +82.98%
Fwd P/E
HPE ✓12.05
CSCO 25.35
Target Up.
HPE ✓+33.13%
CSCO +4.83%
Op. Margin
HPE 8.70%
CSCO ✓24.99%
Metrics last refreshed: 6/20/2026
Quick take
HPE vs CSCO Stock Comparison: AI Score, Valuation, Performance and Upside
HPE and Cisco compete in enterprise networking (HPE Aruba vs Cisco Catalyst) but are primarily non-overlapping: HPE is an AI server and hybrid cloud infrastructure company, while Cisco is a networking software and security company transitioning to a subscription model. Both have AI tailwinds — HPE from AI server demand, Cisco from AI Ethernet networking — but their business models and risk profiles differ significantly.
HPE vs Cisco is a comparison between an infrastructure hardware company transitioning to as-a-service and a dominant networking company transitioning to software subscriptions — both narratives require execution on business model change, with Cisco's larger installed base and Splunk security franchise providing more diversified transition support.
Live analysis · updated 6/20/2026
HPE holds the edge across 4 of 5 key metrics in this comparison. HPE leads on both 1-year return (+164.86%) and forward P/E (12.05x vs 25.35x for CSCO), a relatively favorable combination of momentum and valuation. On fundamentals, HPE is growing revenue faster (40.00%), while CSCO maintains the higher operating margin (24.99%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for HPE (+33.13%) than for CSCO (+4.83%).
Normalized 1Y performance
HPE
CSCO
Recent returns
HPE
CSCO
Analyst price targets & sentiment
HPE
Price target range
analyst mean$64.13
current price$47.41
+33.1% upside to analyst mean
CSCO · 22 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.0/5.0)
Price target range
analyst low$56.00
analyst mean$126.95
current price$119.54
+4.8% upside to analyst mean
Who should consider this stock?
HPE may suit investors who:
- →prefer a server and HPC infrastructure company with AI workload exposure via GPU systems and Cray
- →value the GreenLake as-a-service model as a differentiated alternative to public cloud for regulated industries
- →want enterprise infrastructure exposure without the networking market concentration of Cisco
- →are comfortable with lower near-term margins from AI server hardware cost pass-through
CSCO may suit investors who:
- →prefer the dominant enterprise networking franchise with an enormous installed base and software attach opportunity
- →value Splunk's security observability platform as a major cross-sell opportunity into Cisco's customer base
- →want a mature, high-free-cash-flow technology company with a growing dividend and buyback program
- →are comfortable with near-term revenue headwinds from inventory digestion and the ratable revenue transition
Performance & AI score
| Metric | HPE | CSCO |
|---|---|---|
| AI score | 62.4 | 51.4 |
| AI rank | #126 | #373 |
| Latest close | $47.41 | $119.54 |
| 1M return | +45.34% | +3.61% |
| 6M return | +97.38% | +57.29% |
| 1Y return | +164.86% | +82.98% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | HPE | CSCO |
|---|---|---|
| 1Y ago | $26.66K (+166.6%) started 2025-06-18 | $18.16K (+81.6%) started 2025-06-18 |
| 5Y ago | $40.61K (+306.1%) started 2021-06-21 | $28.81K (+188.1%) started 2021-06-21 |
| 10Y ago | $71.79K (+617.9%) started 2016-06-20 | $75.67K (+656.7%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | HPE | CSCO |
|---|---|---|
| Market cap | $63.79B | $477.31B |
| Trailing P/E | 45.02 | 40.37 |
| Forward P/E | 12.05 | 25.35 |
| Price/Sales | N/A | 4.70 |
| EV/Revenue | 2.06 | 8.13 |
| Analyst target | $64.13 | $126.95 |
| Target upside | +33.13% | +4.83% |
Growth, profitability & risk
| Metric | HPE | CSCO |
|---|---|---|
| Revenue growth | 40.00% | 12.00% |
| Earnings growth | -30.30% | 37.10% |
| EPS growth | -30.30% | +37.10% |
| FCF margin | +9.89% | +15.29% |
| Operating margin | 8.70% | 24.99% |
| Profit margin | 4.01% | 19.68% |
| ROIC proxy | 6.31% | 25.23% |
| Return on equity | 6.31% | 25.23% |
| Dividend yield | 1.18% | 1.39% |
| Beta | 1.45 | 1.00 |
| Debt/equity | 84.03 | 67.54 |
| Current ratio | 1.09 | 0.93 |
| Quick ratio | 0.57 | 0.70 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
HPE max drawdown23.81%
CSCO max drawdown13.57%
HPE max wkly drop17.52%
CSCO max wkly drop11.44%
5Y risk snapshot
HPE max drawdown48.36%
CSCO max drawdown36.68%
HPE max wkly drop20.76%
CSCO max wkly drop13.61%
10Y risk snapshot
HPE max drawdown56.87%
CSCO max drawdown41.95%
HPE max wkly drop28.21%
CSCO max wkly drop16.10%
Performance metrics by period
| Period | Metric | HPE | CSCO |
|---|---|---|---|
| 1Y | Growth | +166.65% | +81.56% |
| CAGR | +167.02% | +81.72% | |
| Sharpe ratio | 2.16 | 1.95 | |
| Max drawdown | 23.81% | 13.57% | |
| Max daily drop | 10.14% | 12.32% | |
| Max wkly drop | 17.52% | 11.44% | |
| 5Y | Growth | +260.51% | +153.51% |
| CAGR | +29.29% | +20.48% | |
| Sharpe ratio | 0.74 | 0.70 | |
| Max drawdown | 48.36% | 36.68% | |
| Max daily drop | 15.14% | 13.73% | |
| Max wkly drop | 20.76% | 13.61% | |
| 10Y | Growth | +440.92% | +448.91% |
| CAGR | +18.40% | +18.57% | |
| Sharpe ratio | 0.52 | 0.62 | |
| Max drawdown | 56.87% | 41.95% | |
| Max daily drop | 15.31% | 13.73% | |
| Max wkly drop | 28.21% | 16.10% |
Business comparison
| Category | HPE | CSCO |
|---|---|---|
| Company | Hewlett Packard Enterprise Company | Cisco Systems, Inc. |
| Sector | Technology | Technology |
| Industry | N/A | Communication Equipment |
| Core business | HPE provides enterprise servers, storage, networking (Aruba), and the GreenLake hybrid cloud platform. AI-focused infrastructure including ProLiant GPU servers and Cray HPC systems are growing drivers. GreenLake delivers infrastructure as a service, building annual recurring revenue from enterprise and government customers who prefer consuming IT as a managed service rather than owning assets. | Cisco Systems is the dominant enterprise networking company, providing routers, switches, firewalls, wireless access points, and software-defined networking across campus, branch, data center, and service provider environments. Cisco is transitioning from hardware-led perpetual license sales to a recurring software and subscription model across Catalyst (campus), Nexus (data center), Webex (collaboration), and Splunk (security observability) platforms. AI infrastructure networking — particularly Ethernet switching for AI GPU clusters — is an emerging growth area. |
| Investor focus | Investors track GreenLake ARR growth, AI/HPC server backlog, operating margin improvement, and the pace of enterprise adoption of hybrid cloud as-a-service. | Investors focus on annualized recurring revenue (ARR) growth as the software/subscription transition progresses, Splunk integration and cross-sell into security observability, AI networking demand for Ethernet-based GPU cluster interconnect, and operating margin sustainability during the hardware-to-software transition. |
HPE strengths
- →Cray HPC systems serve strategic government and research markets with long contract lifecycles
- →GreenLake creates switching costs as customers integrate their IT operations into the platform
- →Aruba networking competes effectively in enterprise WLAN and campus switching with strong software attach rates
CSCO strengths
- →Dominant market share in enterprise routing and switching creates an enormous installed base for software subscription attach
- →Splunk acquisition adds the leading enterprise security observability platform, opening a large upsell opportunity into the security budget
- →AI Ethernet networking (Nexus 9000 series) is positioned to benefit as hyperscalers explore Ethernet alternatives to InfiniBand for AI clusters
Risks to watch — HPE
- →GreenLake ARR has grown slower than initial targets, questioning the pace of enterprise as-a-service adoption
- →AI server margins are compressed by GPU hardware costs, and HPE trails Dell in market share for AI PowerEdge-type systems
- →Cisco and Juniper directly compete with Aruba in enterprise networking
Risks to watch — CSCO
- →Product order digestion from the COVID-era supply chain surge has created a multi-quarter revenue headwind as customers work through inventory
- →The software transition reduces near-term revenue recognition (ratable vs upfront), creating a period of reported revenue weakness that masks underlying health
- →Juniper/HPE Aruba and Arista compete in enterprise switching; InfiniBand and RoCE compete in AI cluster networking
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