Why Jim Cramer Would Buy Cisco (CSCO), Not Walmart (WMT)

NEW YORK (TheStreet) -- TheStreet's Jim Cramer thinks Cisco's  (CSCO) third-quarter results reflected the "old" CEO John Chambers because they showed real growth, particularly in the U.S.

Cramer says the U.S. could lead the world out of its morass, rather than Brazil, Russia or China. He points out the latter three nations are not so strong at the moment but says it does not matter because the U.S. "can be that kind of locomotive."

Cramer recommends Cisco as a buy on any pullback because of its good yield and great buyback plan.

Must Watch: Jim Cramer Says Buy Cisco, Stay Away from Walmart

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team agrees, as it rates Cisco as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CISCO SYSTEMS INC (CSCO) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

As for Walmart (WMT), Cramer wonders how much of its first-quarter earnings report was execution and how much was consumers spending less. The latter is what he refers to as the "new frugality."

Cramer says he does not want to own Walmart yet until the stock reaches the point where yield can support it.

Must Watch: Jim Cramer Says Buy Cisco, Stay Away from Walmart

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team, on the other hand, rates Walmart as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate WAL-MART STORES INC (WMT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, reasonable valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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