Better Buy: Cisco Systems vs. General Electric
Cisco Systems (NASDAQ: CSCO) and General Electric (NYSE: GE) have often been considered stable investments for conservative investors. Cisco is the world's largest manufacturer of networking routers and switches, and GE provides industrial products and services for a wide range of industries.
Yet the two companies' fortunes diverged over the past five years, as Cisco's stock rallied about 70% and GE's stock plunged over 50%. Cisco's revenue rose again as enterprise customers upgraded their networks, it repatriated its overseas cash, and it expanded its higher-growth applications and security businesses through acquisitions.
GE, which never fully recovered from the financial crisis a decade ago, tried to streamline its business by divesting weaker units, cutting jobs, and slashing its dividend. But it failed to generate consistent growth, and operating under three CEOs over the past three years jumbled its strategies. It was also dropped from the Dow Jones Industrial Average last year.
Source Fool.com
