Arista Networks (NYSE: ANET) is one of 70 public companies in the “Communications & Networking” industry, but how does it contrast to its rivals? We will compare Arista Networks to related companies based on the strength of its earnings, risk, valuation, institutional ownership, dividends, profitability and analyst recommendations.
This table compares Arista Networks and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Arista Networks Competitors||-2.33%||-5.94%||0.30%|
Risk and Volatility
Arista Networks has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Arista Networks’ rivals have a beta of 1.17, suggesting that their average stock price is 17% more volatile than the S&P 500.
Insider & Institutional Ownership
59.4% of Arista Networks shares are owned by institutional investors. Comparatively, 62.9% of shares of all “Communications & Networking” companies are owned by institutional investors. 28.1% of Arista Networks shares are owned by company insiders. Comparatively, 13.2% of shares of all “Communications & Networking” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and recommmendations for Arista Networks and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Arista Networks Competitors||383||2512||4041||161||2.56|
Arista Networks presently has a consensus target price of $182.33, indicating a potential downside of 9.51%. As a group, “Communications & Networking” companies have a potential upside of 28.86%. Given Arista Networks’ rivals higher probable upside, analysts clearly believe Arista Networks has less favorable growth aspects than its rivals.
Earnings and Valuation
This table compares Arista Networks and its rivals revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Arista Networks||$1.13 billion||$184.18 million||41.63|
|Arista Networks Competitors||$3.30 billion||$420.04 million||-2.12|
Arista Networks’ rivals have higher revenue and earnings than Arista Networks. Arista Networks is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Arista Networks beats its rivals on 8 of the 13 factors compared.
Arista Networks Company Profile
Arista Networks, Inc. is a supplier of cloud networking solutions that use software innovations to address the needs of Internet companies, cloud service providers and data centers for enterprise support. It develops, markets and sells cloud networking solutions, which consist of its Gigabit Ethernet switches and related software. The Company’s cloud networking solutions consist of its Extensible Operating System (EOS), a set of network applications and its Ethernet switching and routing platforms. The programmability of EOS has allowed it to create a set of software applications that address the requirements of cloud networking, including workflow automation, network visibility and analytics, and has also allowed it to integrate with a range of third-party applications for virtualization, management, automation, orchestration and network services. EOS supports cloud and virtualization solutions, including VMware NSX, Microsoft System Center and other cloud management frameworks.
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