Is Ubiquiti a Better Buy Than Cisco Systems?
Cisco Systems surged 23% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Ubiquiti gives you more. Ubiquiti (UI) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Cisco Systems (CSCO) stock, suggesting you may be better off investing in UI
- UI’s quarterly revenue growth was 18.7%, vs. CSCO’s 12.0%.
- In addition, its Last 12 Months revenue growth came in at 33.3%, ahead of CSCO’s 9.2%.
- UI leads on profitability over both periods – LTM margin of 35.8% and 3-year average of 31.0%.
These differences become even clearer when you look at the financials side by side. The table highlights how CSCO’s fundamentals stack up against those of UI on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| CSCO | UI | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 33.4 | 31.8 | UI |
| Revenue Growth | |||
| Last Quarter | 12.0% | 18.7% | UI |
| Last 12 Months | 9.2% | 33.3% | UI |
| Last 3 Year Average | 3.5% | 18.6% | UI |
| Operating Margins | |||
| Last 12 Months | 23.7% | 35.8% | UI |
| Last 3 Year Average | 24.0% | 31.0% | UI |
| Momentum | |||
| Last 3 Year Return | 166.6% | 256.5% | UI |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See detailed fundamentals on Buy or Sell UI Stock and Buy or Sell CSCO Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CSCO Return | 46% | -22% | 9% | 21% | 33% | 56% | 211% | <=== | |
| UI Return | 11% | -10% | -48% | 141% | 68% | 1% | 111% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 6% | 93% | ||
| Monthly Win Rates [3] | |||||||||
| CSCO Win Rate | 75% | 33% | 58% | 67% | 67% | 67% | 61% | ||
| UI Win Rate | 67% | 33% | 42% | 58% | 67% | 50% | 53% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| CSCO Max Drawdown | -10% | -36% | -17% | -13% | -17% | -14% | -18% | ||
| UI Max Drawdown | -32% | -28% | -65% | -24% | -36% | -49% | -39% | ||
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | -13% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 6/11/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read UI Dip Buyer Analyses to see how the stock has fallen and recovered in the past.
Still not sure about CSCO or UI? Consider portfolio approach.
Portfolios Win When Stock Picks Fall Short
Single stocks swing wildly, but staying invested matters. A well-built portfolio helps you stay invested, captures upside, and softens the blows from individual stocks.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.