Financial Survey: Electronics For Imaging (EFII) versus Arista Networks (ANET)

Electronics For Imaging (NASDAQ: EFII) and Arista Networks (NYSE:ANET) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares Electronics For Imaging and Arista Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Electronics For Imaging -2.29% 0.50% 0.27%
Arista Networks 28.07% 28.69% 19.66%

Institutional & Insider Ownership

53.5% of Arista Networks shares are held by institutional investors. 1.6% of Electronics For Imaging shares are held by insiders. Comparatively, 25.0% of Arista Networks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Electronics For Imaging and Arista Networks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electronics For Imaging 2 3 7 0 2.42
Arista Networks 1 13 17 0 2.52

Electronics For Imaging presently has a consensus price target of $38.14, indicating a potential upside of 17.83%. Arista Networks has a consensus price target of $272.27, indicating a potential upside of 5.72%. Given Electronics For Imaging’s higher probable upside, equities research analysts plainly believe Electronics For Imaging is more favorable than Arista Networks.

Valuation and Earnings

This table compares Electronics For Imaging and Arista Networks’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Electronics For Imaging $993.26 million 1.46 -$15.34 million $0.27 119.89
Arista Networks $1.65 billion 11.64 $423.20 million $4.65 55.38

Arista Networks has higher revenue and earnings than Electronics For Imaging. Arista Networks is trading at a lower price-to-earnings ratio than Electronics For Imaging, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Electronics For Imaging has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Arista Networks has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Summary

Arista Networks beats Electronics For Imaging on 12 of the 14 factors compared between the two stocks.

Electronics For Imaging Company Profile

Electronics for Imaging, Inc. provides industrial format display graphics, corrugated packaging and display, textile, and ceramic tile decoration digital inkjet printers worldwide. Its Industrial Inkjet segment offers VUTEk format display graphics, Nozomi corrugated packaging and display, Reggiani textile, and Cretaprint ceramic tile decoration and building material industrial digital inkjet printers; digital ultra-violet curable, light emitting diode curable, ceramic, water-based, thermoforming, and specialty inks; various textile inks, including dye sublimation, pigmented, reactive dye, acid dye, pure disperse dye, and water-based dispersed printing inks, as well as coatings; digital inkjet printer parts; and professional services. The company's Productivity Software segment provides software suite that enables end-to-end business and production workflows for the print and packaging industry. This segment offers packaging suite for tag and label, cartons, and flexible packaging businesses; corrugated packaging suite corrugated packaging businesses; enterprise commercial print suite for enterprise print businesses; publication print suite for publication print businesses; midmarket print suite for medium size print businesses; quick print suite for small printers and in-plant; and value added products, as well as Optitex, a fashion computer aided fashion design software. Its Fiery segment provides stand-alone color printing digital front ends (DFEs) connected to digital printers, copiers, and other peripheral devices; embedded DFEs and design-licensed solutions used in digital copiers and multi-functional devices; optional software integrated into its DFEs, such as Fiery Central and Graphics Arts Package; Fiery Self Serve, a self-service and payment solution; and stand-alone software-based solutions, such as proofing, textile, and scanning solutions. Electronics for Imaging, Inc. was founded in 1988 and is headquartered in Fremont, California.

Arista Networks Company Profile

Arista Networks, Inc. provides cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of its extensible operating systems, a set of network applications, as well as gigabit Ethernet switching and routing platforms, including universal leaf, spline, and universal spine products. It also provides post contract customer support services, such as technical support, hardware repair and parts replacement beyond standard warranty, bug fix, patch, and upgrade services. The company serves a range of industries comprising Internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, and others. It markets and sells its products through distributors, value-added resellers, system integrators, and original equipment manufacturer partners, as well as through its direct sales force. The company was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. Arista Networks, Inc. was founded in 2004 and is headquartered in Santa Clara, California.

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