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

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Here’s a clear look at ALAB and ANET, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolALABANET
Company NameAstera Labs, Inc.Arista Networks Inc
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySemiconductors & Semiconductor EquipmentCommunications Equipment
Market Capitalization28.66 billion USD165.24 billion USD
ExchangeNasdaqGSNYSE
Listing DateMarch 20, 2024June 6, 2014
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ALAB and ANET by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ALAB vs. ANET: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolALABANET
5-Day Price Return-11.66%-3.67%
13-Week Price Return88.89%35.96%
26-Week Price Return95.50%19.79%
52-Week Price Return318.14%49.36%
Month-to-Date Return25.11%6.70%
Year-to-Date Return29.15%18.95%
10-Day Avg. Volume6.85M8.29M
3-Month Avg. Volume4.89M9.86M
3-Month Volatility92.61%53.44%
Beta2.551.48

Profitability

Return on Equity (TTM)

ALAB

9.94%

Semiconductors & Semiconductor Equipment Industry

Max
52.74%
Q3
23.49%
Median
11.60%
Q1
3.23%
Min
-20.69%

ALAB’s Return on Equity of 9.94% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

ANET

32.30%

Communications Equipment Industry

Max
32.05%
Q3
19.58%
Median
11.77%
Q1
2.23%
Min
-11.93%

ANET’s Return on Equity of 32.30% is exceptionally high, placing it well beyond the typical range for the Communications Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ALAB vs. ANET: A comparison of their Return on Equity (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Net Profit Margin (TTM)

ALAB

16.54%

Semiconductors & Semiconductor Equipment Industry

Max
44.17%
Q3
22.38%
Median
11.95%
Q1
3.21%
Min
-25.16%

ALAB’s Net Profit Margin of 16.54% is aligned with the median group of its peers in the Semiconductors & Semiconductor Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

ANET

40.89%

Communications Equipment Industry

Max
23.65%
Q3
14.32%
Median
5.31%
Q1
1.45%
Min
-12.72%

ANET’s Net Profit Margin of 40.89% is exceptionally high, placing it well beyond the typical range for the Communications Equipment industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

ALAB vs. ANET: A comparison of their Net Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Operating Profit Margin (TTM)

ALAB

6.99%

Semiconductors & Semiconductor Equipment Industry

Max
58.03%
Q3
27.84%
Median
12.45%
Q1
5.15%
Min
-28.61%

ALAB’s Operating Profit Margin of 6.99% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

ANET

43.14%

Communications Equipment Industry

Max
42.27%
Q3
18.90%
Median
6.21%
Q1
2.97%
Min
-20.72%

ANET’s Operating Profit Margin of 43.14% is exceptionally high, placing it well above the typical range for the Communications Equipment industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

ALAB vs. ANET: A comparison of their Operating Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Profitability at a Glance

SymbolALABANET
Return on Equity (TTM)9.94%32.30%
Return on Assets (TTM)9.04%22.45%
Net Profit Margin (TTM)16.54%40.89%
Operating Profit Margin (TTM)6.99%43.14%
Gross Profit Margin (TTM)75.52%64.24%

Financial Strength

Current Ratio (MRQ)

ALAB

11.10

Semiconductors & Semiconductor Equipment Industry

Max
8.42
Q3
4.70
Median
2.75
Q1
2.07
Min
1.04

ALAB’s Current Ratio of 11.10 is exceptionally high, placing it well outside the typical range for the Semiconductors & Semiconductor Equipment industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

ANET

3.33

Communications Equipment Industry

Max
1.72
Q3
1.72
Median
1.46
Q1
1.18
Min
0.93

ANET’s Current Ratio of 3.33 is exceptionally high, placing it well outside the typical range for the Communications Equipment industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

ALAB vs. ANET: A comparison of their Current Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ALAB

0.00

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.45
Median
0.22
Q1
0.01
Min
0.00

Falling into the lower quartile for the Semiconductors & Semiconductor Equipment industry, ALAB’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ANET

0.00

Communications Equipment Industry

Max
1.55
Q3
0.92
Median
0.55
Q1
0.30
Min
0.00

Falling into the lower quartile for the Communications Equipment industry, ANET’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ALAB vs. ANET: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

ALAB

--

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
81.10
Median
27.22
Q1
7.28
Min
-4.26

Interest Coverage Ratio data for ALAB is currently unavailable.

ANET

171.78

Communications Equipment Industry

Max
181.73
Q3
113.63
Median
7.59
Q1
3.82
Min
-5.39

ANET’s Interest Coverage Ratio of 171.78 is in the upper quartile for the Communications Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ALAB vs. ANET: A comparison of their Interest Coverage Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Financial Strength at a Glance

SymbolALABANET
Current Ratio (MRQ)11.103.33
Quick Ratio (MRQ)10.242.58
Debt-to-Equity Ratio (MRQ)0.000.00
Interest Coverage Ratio (TTM)--171.78

Growth

Revenue Growth

ALAB vs. ANET: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ALAB vs. ANET: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ALAB

0.00%

Semiconductors & Semiconductor Equipment Industry

Max
4.16%
Q3
1.78%
Median
0.74%
Q1
0.00%
Min
0.00%

ALAB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ANET

0.00%

Communications Equipment Industry

Max
3.88%
Q3
2.75%
Median
0.93%
Q1
0.00%
Min
0.00%

ANET currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ALAB vs. ANET: A comparison of their Dividend Yield (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

ALAB

0.00%

Semiconductors & Semiconductor Equipment Industry

Max
196.12%
Q3
87.72%
Median
26.57%
Q1
0.00%
Min
0.00%

ALAB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ANET

0.00%

Communications Equipment Industry

Max
111.16%
Q3
55.91%
Median
28.42%
Q1
0.00%
Min
0.00%

ANET has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ALAB vs. ANET: A comparison of their Dividend Payout Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Dividend at a Glance

SymbolALABANET
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ALAB

286.19

Semiconductors & Semiconductor Equipment Industry

Max
109.37
Q3
57.11
Median
28.95
Q1
22.13
Min
11.14

At 286.19, ALAB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors & Semiconductor Equipment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ANET

51.33

Communications Equipment Industry

Max
57.30
Q3
47.92
Median
27.50
Q1
17.89
Min
13.89

A P/E Ratio of 51.33 places ANET in the upper quartile for the Communications Equipment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ALAB vs. ANET: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

ALAB

47.34

Semiconductors & Semiconductor Equipment Industry

Max
16.09
Q3
10.10
Median
4.82
Q1
2.60
Min
0.93

With a P/S Ratio of 47.34, ALAB trades at a valuation that eclipses even the highest in the Semiconductors & Semiconductor Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ANET

20.99

Communications Equipment Industry

Max
11.03
Q3
5.53
Median
2.20
Q1
0.99
Min
0.40

With a P/S Ratio of 20.99, ANET trades at a valuation that eclipses even the highest in the Communications Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ALAB vs. ANET: A comparison of their Price-to-Sales Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

ALAB

13.13

Semiconductors & Semiconductor Equipment Industry

Max
13.56
Q3
6.75
Median
3.68
Q1
1.89
Min
0.60

ALAB’s P/B Ratio of 13.13 is in the upper tier for the Semiconductors & Semiconductor Equipment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ANET

11.79

Communications Equipment Industry

Max
9.66
Q3
5.60
Median
3.73
Q1
2.67
Min
0.30

At 11.79, ANET’s P/B Ratio is at an extreme premium to the Communications Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ALAB vs. ANET: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Communications Equipment industry benchmarks.

Valuation at a Glance

SymbolALABANET
Price-to-Earnings Ratio (TTM)286.1951.33
Price-to-Sales Ratio (TTM)47.3420.99
Price-to-Book Ratio (MRQ)13.1311.79
Price-to-Free Cash Flow Ratio (TTM)136.2541.98