ANET vs. ARM: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ANET and ARM, 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
With ANET at 116.08 billion USD and ARM at 137.89 billion USD, their market capitalizations sit in the same ballpark.
ARM carries a higher beta at 4.41, indicating it’s more sensitive to market moves, while ANET remains steadier at 1.39.
ARM is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike ANET, which is purely domestic.
| Symbol | ANET | ARM |
|---|---|---|
| Company Name | Arista Networks, Inc. | Arm Holdings plc American Depositary Shares |
| Country | US | GB |
| Sector | Technology | Technology |
| Industry | Computer Hardware | Semiconductors |
| CEO | Ms. Jayshree V. Ullal | Mr. Rene Anthony Andrada Haas |
| Price | 92.43 USD | 130.45 USD |
| Market Cap | 116.08 billion USD | 137.89 billion USD |
| Beta | 1.39 | 4.41 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 6, 2014 | September 14, 2023 |
| ADR | No | Yes |
Performance Comparison
This chart compares the performance of ANET and ARM 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 ANET and ARM based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- ARM features a high P/E of 170.26, indicating strong growth expectations, compared to ANET at 38.46, which trades at a more standard valuation based on its current earnings.
| Symbol | ANET | ARM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 38.46 | 170.26 |
| Forward PEG Ratio (TTM) | 2.11 | 6.09 |
| Price-to-Sales Ratio (P/S, TTM) | 15.61 | 37.33 |
| Price-to-Book Ratio (P/B, TTM) | 11.51 | 21.38 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 30.67 | 220.26 |
| EV-to-EBITDA (TTM) | 35.66 | 221.33 |
| EV-to-Sales (TTM) | 15.36 | 36.85 |
| EV-to-Free Cash Flow (TTM) | 30.18 | 217.45 |
Dividend Comparison
Neither ANET nor ARM currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.
| Symbol | ANET | ARM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ANET and ARM, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- Neither ANET nor ARM records interest coverage (both “--”), indicating virtually no interest expense—usually a sign of negligible debt.
| Symbol | ANET | ARM |
|---|---|---|
| Current Ratio (TTM) | 3.93 | 4.96 |
| Quick Ratio (TTM) | 3.31 | 4.96 |
| Debt-to-Equity Ratio (TTM) | 0.00 | 0.04 |
| Debt-to-Assets Ratio (TTM) | 0.00 | 0.03 |
| Interest Coverage Ratio (TTM) | -- | -- |