Seek Returns logo

AFRM vs. ANET: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at AFRM and ANET, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

ANET towers over AFRM with a market cap of 116.08 billion USD, roughly 7.62 times the 15.24 billion USD of its peer.

AFRM rides a wilder wave with a beta of 3.66, hinting at bigger swings than ANET’s steadier 1.39.

SymbolAFRMANET
Company NameAffirm Holdings, Inc.Arista Networks, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - InfrastructureComputer Hardware
CEOMr. Max Roth LevchinMs. Jayshree V. Ullal
Price47.24 USD92.43 USD
Market Cap15.24 billion USD116.08 billion USD
Beta3.6641.387
ExchangeNASDAQNYSE
IPO DateJanuary 13, 2021June 6, 2014
ADRNoNo

Performance Comparison

This chart compares the performance of AFRM and ANET over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of AFRM and ANET based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • AFRM has a negative P/E of -246.14, indicating it’s been unprofitable over the past year with no net earnings to support its stock price. On the other hand, ANET at 38.46 has maintained positive earnings, showing a healthier profit profile.
  • AFRM carries a negative Forward PEG of -1.38, hinting at analyst expectations of losses or shrinking earnings in the coming period—a potential warning for its future performance. On the flip side, ANET at 2.11 sidesteps this concern with a more favorable outlook.
SymbolAFRMANET
Price-to-Earnings Ratio (P/E, TTM)-246.1438.46
Forward PEG Ratio (TTM)-1.382.11
Price-to-Sales Ratio (P/S, TTM)5.0715.61
Price-to-Book Ratio (P/B, TTM)5.3211.51
Price-to-Free Cash Flow Ratio (P/FCF, TTM)25.0430.67
EV-to-EBITDA (TTM)69.8535.66
EV-to-Sales (TTM)7.0715.36
EV-to-Free Cash Flow (TTM)34.9030.18

Dividend Comparison

Neither AFRM nor ANET pays dividends, suggesting both reinvest all profits into growth—likely expansion or innovation—favoring long-term value over immediate income.

SymbolAFRMANET
Dividend Yield (TTM)0.00%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AFRM and ANET, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • AFRM’s -0.24 interest coverage dips below 1.5, with earnings just nudging past interest—tight if pressure hits. Meanwhile, ANET displays “--”, reflecting an interest burden so small it barely registers, likely from minimal debt.
SymbolAFRMANET
Current Ratio (TTM)63.093.93
Quick Ratio (TTM)63.093.31
Debt-to-Equity Ratio (TTM)2.560.00
Debt-to-Assets Ratio (TTM)0.710.00
Interest Coverage Ratio (TTM)-0.24--