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

Updated on July 7, 2025

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

Company Overview

ANET’s market capitalization stands at 128.76 billion USD, while ARM’s is 163.93 billion USD, indicating their market valuations are broadly comparable.

ARM carries a higher beta at 4.10, indicating it’s more sensitive to market moves, while ANET (beta: 1.38) exhibits greater stability.

ARM is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ANET, on the other hand, is a domestic entity.

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	Jayshree V. Ullal	Rene Anthony Andrada Haas
Price	102.52 USD	155.09 USD
Market Cap	128.76 billion USD	163.93 billion USD
Beta	1.38	4.10
Exchange	NYSE	NASDAQ
IPO Date	June 6, 2014	September 14, 2023
ADR	No	Yes

Historical Performance

This chart compares the performance of ANET and ARM 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.

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

Profitability

Return on Equity

ANET

32.05%

Computer Hardware Industry

Max: 123.03%
Q3: 15.78%
Median: -13.44%
Q1: -119.16%
Min: -227.95%

In the upper quartile for the Computer Hardware industry, ANET’s Return on Equity of 32.05% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ARM

12.71%

Semiconductors Industry

Max: 41.84%
Q3: 15.81%
Median: 6.31%
Q1: -5.54%
Min: -30.12%

ARM’s Return on Equity of 12.71% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.

ANET vs. ARM: A comparison of their ROE against their respective Computer Hardware and Semiconductors industry benchmarks.

Return on Invested Capital

ANET

23.89%

Computer Hardware Industry

Max: 30.37%
Q3: 20.44%
Median: 7.03%
Q1: -12.47%
Min: -31.70%

In the upper quartile for the Computer Hardware industry, ANET’s Return on Invested Capital of 23.89% signifies a highly effective use of its capital to generate profits when compared to its peers.

ARM

11.37%

Semiconductors Industry

Max: 30.91%
Q3: 11.34%
Median: 4.08%
Q1: -2.17%
Min: -19.59%

In the upper quartile for the Semiconductors industry, ARM’s Return on Invested Capital of 11.37% signifies a highly effective use of its capital to generate profits when compared to its peers.

ANET vs. ARM: A comparison of their ROIC against their respective Computer Hardware and Semiconductors industry benchmarks.

Net Profit Margin

ANET

40.72%

Computer Hardware Industry

Max: 40.72%
Q3: 10.87%
Median: 4.33%
Q1: -378.64%
Min: -753.20%

A Net Profit Margin of 40.72% places ANET in the upper quartile for the Computer Hardware industry, signifying strong profitability and more effective cost management than most of its peers.

ARM

19.77%

Semiconductors Industry

Max: 51.69%
Q3: 19.67%
Median: 8.56%
Q1: -5.44%
Min: -38.60%

A Net Profit Margin of 19.77% places ARM in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.

ANET vs. ARM: A comparison of their Net Profit Margin against their respective Computer Hardware and Semiconductors industry benchmarks.

Operating Profit Margin

ANET

42.27%

Computer Hardware Industry

Max: 42.27%
Q3: 13.53%
Median: 4.56%
Q1: -295.01%
Min: -592.84%

An Operating Profit Margin of 42.27% places ANET in the upper quartile for the Computer Hardware industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ARM

20.74%

Semiconductors Industry

Max: 58.03%
Q3: 22.12%
Median: 8.40%
Q1: -3.73%
Min: -36.14%

ARM’s Operating Profit Margin of 20.74% is around the midpoint for the Semiconductors industry, indicating that its efficiency in managing core business operations is typical for the sector.

ANET vs. ARM: A comparison of their Operating Margin against their respective Computer Hardware and Semiconductors industry benchmarks.

Profitability at a Glance

Symbol	ANET	ARM
Return on Equity (TTM)	32.05%	12.71%
Return on Assets (TTM)	20.86%	8.87%
Return on Invested Capital (TTM)	23.89%	11.37%
Net Profit Margin (TTM)	40.72%	19.77%
Operating Profit Margin (TTM)	42.27%	20.74%
Gross Profit Margin (TTM)	64.09%	95.83%

Financial Strength

Current Ratio

ANET

3.93

Computer Hardware Industry

Max: 20.73
Q3: 11.54
Median: 2.69
Q1: 1.40
Min: 0.73

ANET’s Current Ratio of 3.93 aligns with the median group of the Computer Hardware industry, indicating that its short-term liquidity is in line with its sector peers.

ARM

5.20

Semiconductors Industry

Max: 9.10
Q3: 5.23
Median: 3.09
Q1: 2.49
Min: 1.02

ARM’s Current Ratio of 5.20 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.

ANET vs. ARM: A comparison of their Current Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Debt-to-Equity Ratio

ANET

Computer Hardware Industry

Max: 1.36
Q3: 0.67
Median: 0.04
Q1: 0.03
Min: 0.00

Debt-to-Equity Ratio data for ANET is currently unavailable.

ARM

0.05

Semiconductors Industry

Max: 0.97
Q3: 0.46
Median: 0.21
Q1: 0.05
Min: 0.00

ARM’s Debt-to-Equity Ratio of 0.05 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ANET vs. ARM: A comparison of their D/E Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Interest Coverage Ratio

ANET

Computer Hardware Industry

Max: 32.50
Q3: 21.85
Median: 4.98
Q1: -7.71
Min: -34.24

Interest Coverage Ratio data for ANET is currently unavailable.

ARM

Semiconductors Industry

Max: 36.25
Q3: 29.12
Median: 7.01
Q1: -1.22
Min: -18.18

Interest Coverage Ratio data for ARM is currently unavailable.

ANET vs. ARM: A comparison of their Interest Coverage against their respective Computer Hardware and Semiconductors industry benchmarks.

Financial Strength at a Glance

Symbol	ANET	ARM
Current Ratio (TTM)	3.93	5.20
Quick Ratio (TTM)	3.31	5.20
Debt-to-Equity Ratio (TTM)	--	0.05
Debt-to-Asset Ratio (TTM)	--	0.04
Net Debt-to-EBITDA Ratio (TTM)	-0.58	-2.31
Interest Coverage Ratio (TTM)	--	--

Growth

The following charts compare key year-over-year (YoY) growth metrics for ANET and ARM. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ANET vs. ARM: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ANET vs. ARM: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ANET vs. ARM: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ANET

0.00%

Computer Hardware Industry

Max: 9.24%
Q3: 1.58%
Median: 0.00%
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.

ARM

0.00%

Semiconductors Industry

Max: 6.48%
Q3: 0.93%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ARM 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 vs. ARM: A comparison of their Dividend Yield against their respective Computer Hardware and Semiconductors industry benchmarks.

Dividend Payout Ratio

ANET

0.00%

Computer Hardware Industry

Max: 193.79%
Q3: 30.72%
Median: 0.00%
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.

ARM

0.00%

Semiconductors Industry

Max: 204.29%
Q3: 31.85%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ARM 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 vs. ARM: A comparison of their Payout Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Dividend at a Glance

Symbol	ANET	ARM
Dividend Yield (TTM)	0.00%	0.00%
Dividend Payout Ratio (TTM)	0.00%	0.00%

Valuation

Price-to-Earnings Ratio

ANET

42.66

Computer Hardware Industry

Max: 24.60
Q3: 24.01
Median: 20.31
Q1: 18.24
Min: 13.38

At 42.66, ANET’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Computer Hardware industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ARM

206.59

Semiconductors Industry

Max: 86.15
Q3: 47.38
Median: 27.87
Q1: 18.89
Min: 4.73

At 206.59, ARM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors 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 vs. ARM: A comparison of their P/E Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Forward P/E to Growth Ratio

ANET

1.80

Computer Hardware Industry

Max: 9.77
Q3: 5.18
Median: 1.77
Q1: 1.17
Min: 0.02

The Forward PEG Ratio is often not a primary valuation metric in the Computer Hardware industry.

ARM

7.75

Semiconductors Industry

Max: 4.73
Q3: 2.80
Median: 1.11
Q1: 0.68
Min: 0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

ANET vs. ARM: A comparison of their Forward PEG Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Price-to-Sales Ratio

ANET

17.31

Computer Hardware Industry

Max: 57.61
Q3: 47.40
Median: 3.37
Q1: 1.56
Min: 0.43

ANET’s P/S Ratio of 17.31 aligns with the market consensus for the Computer Hardware industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ARM

40.91

Semiconductors Industry

Max: 21.96
Q3: 10.21
Median: 4.45
Q1: 2.32
Min: 0.48

With a P/S Ratio of 40.91, ARM trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ANET vs. ARM: A comparison of their P/S Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Price-to-Book Ratio

ANET

12.77

Computer Hardware Industry

Max: 21.21
Q3: 14.71
Median: 9.28
Q1: 3.74
Min: 0.43

ANET’s P/B Ratio of 12.77 is within the conventional range for the Computer Hardware industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ARM

23.92

Semiconductors Industry

Max: 13.12
Q3: 6.49
Median: 3.31
Q1: 1.74
Min: 0.23

At 23.92, ARM’s P/B Ratio is at an extreme premium to the Semiconductors 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.

ANET vs. ARM: A comparison of their P/B Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Valuation at a Glance

Symbol	ANET	ARM
Price-to-Earnings Ratio (P/E, TTM)	42.66	206.59
Forward PEG Ratio (TTM)	1.80	7.75
Price-to-Sales Ratio (P/S, TTM)	17.31	40.91
Price-to-Book Ratio (P/B, TTM)	12.77	23.92
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	34.02	1011.91
EV-to-EBITDA (TTM)	39.62	216.85
EV-to-Sales (TTM)	17.07	40.48