TDS vs CSCO

For growth investors, Cisco Systems, Inc.

(CSCO) is the stronger pick with 5. 3% revenue growth year-over-year, versus -75. 3% for Telephone and Data Systems, Inc. (TDS). Cisco Systems, Inc. (CSCO) offers the better valuation at 36. 1x trailing P/E (22. 2x forward), making it the more compelling value choice. Analysts rate Telephone and Data Systems, Inc. (TDS) a "Buy" — based on 7 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Telephone and Data Systems, Inc.

(TDS) delivered a total return of +135. 5%, compared to +87. 2% for Cisco Systems, Inc. (CSCO). Over 10 years, the gap is even starker: CSCO returned +301. 7% versus TDS's +122. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Telephone and Data Systems, Inc.

(TDS) is the lower-risk stock at 0. 64β versus Cisco Systems, Inc. 's 0. 92β — meaning CSCO is approximately 44% more volatile than TDS relative to the S&P 500. On balance sheet safety, Telephone and Data Systems, Inc. (TDS) carries a lower debt/equity ratio of 37% versus 63% for Cisco Systems, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Cisco Systems, Inc.

(CSCO) is pulling ahead at 5. 3% versus -75. 3% for Telephone and Data Systems, Inc. (TDS). On earnings-per-share growth, the picture is similar: Telephone and Data Systems, Inc. grew EPS 22. 4% year-over-year, compared to 0. 4% for Cisco Systems, Inc.. Over a 3-year CAGR, CSCO leads at 3. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Cisco Systems, Inc.

(CSCO) is the more profitable company, earning 18. 0% net margin versus -0. 5% for Telephone and Data Systems, Inc. — meaning it keeps 18. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CSCO leads at 20. 8% versus -5. 0% for TDS. At the gross margin level — before operating expenses — CSCO leads at 64. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

Analyst consensus price targets imply the most upside for CSCO: 4.

7% to $96. 50.

All stocks in this comparison pay dividends.

Cisco Systems, Inc. (CSCO) offers the highest yield at 1. 7%, versus 1. 7% for Telephone and Data Systems, Inc. (TDS).

For long-horizon retirement investors, Telephone and Data Systems, Inc.

(TDS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 64), 1. 7% yield, +122. 9% 10Y return). Both have compounded well over 10 years (TDS: +122. 9%, CSCO: +301. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (TDS (Communication Services) and CSCO (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.