ANET vs. AVGO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ANET and AVGO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ANET | AVGO |
|---|---|---|
| Company Name | Arista Networks Inc | Broadcom Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Communications Equipment | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 165.24 billion USD | 1,369.51 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | June 6, 2014 | August 6, 2009 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ANET and AVGO 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.
Historical Performance at a Glance
| Symbol | ANET | AVGO |
|---|---|---|
| 5-Day Price Return | -3.67% | -6.45% |
| 13-Week Price Return | 35.96% | 26.25% |
| 26-Week Price Return | 19.79% | 23.48% |
| 52-Week Price Return | 49.36% | 73.62% |
| Month-to-Date Return | 6.70% | -0.86% |
| Year-to-Date Return | 18.95% | 25.59% |
| 10-Day Avg. Volume | 8.29M | 17.32M |
| 3-Month Avg. Volume | 9.86M | 20.79M |
| 3-Month Volatility | 53.44% | 30.30% |
| Beta | 1.48 | 1.20 |
Profitability
Return on Equity (TTM)
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.
AVGO
18.95%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.74%
- Q3
- 23.49%
- Median
- 11.60%
- Q1
- 3.23%
- Min
- -20.69%
AVGO’s Return on Equity of 18.95% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
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.
AVGO
22.64%
Semiconductors & Semiconductor Equipment Industry
- Max
- 44.17%
- Q3
- 22.38%
- Median
- 11.95%
- Q1
- 3.21%
- Min
- -25.16%
A Net Profit Margin of 22.64% places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
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.
AVGO
35.94%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.03%
- Q3
- 27.84%
- Median
- 12.45%
- Q1
- 5.15%
- Min
- -28.61%
An Operating Profit Margin of 35.94% places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ANET | AVGO |
|---|---|---|
| Return on Equity (TTM) | 32.30% | 18.95% |
| Return on Assets (TTM) | 22.45% | 7.79% |
| Net Profit Margin (TTM) | 40.89% | 22.64% |
| Operating Profit Margin (TTM) | 43.14% | 35.94% |
| Gross Profit Margin (TTM) | 64.24% | 66.35% |
Financial Strength
Current Ratio (MRQ)
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.
AVGO
1.08
Semiconductors & Semiconductor Equipment Industry
- Max
- 8.42
- Q3
- 4.70
- Median
- 2.75
- Q1
- 2.07
- Min
- 1.04
AVGO’s Current Ratio of 1.08 falls into the lower quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
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.
AVGO
0.97
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.45
- Median
- 0.22
- Q1
- 0.01
- Min
- 0.00
AVGO’s leverage is in the upper quartile of the Semiconductors & Semiconductor Equipment industry, with a Debt-to-Equity Ratio of 0.97. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
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.
AVGO
3.83
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.10
- Median
- 27.22
- Q1
- 7.28
- Min
- -4.26
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, AVGO’s Interest Coverage Ratio of 3.83 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | ANET | AVGO |
|---|---|---|
| Current Ratio (MRQ) | 3.33 | 1.08 |
| Quick Ratio (MRQ) | 2.58 | 0.93 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 0.97 |
| Interest Coverage Ratio (TTM) | 171.78 | 3.83 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
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.
AVGO
0.77%
Semiconductors & Semiconductor Equipment Industry
- Max
- 4.16%
- Q3
- 1.78%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
AVGO’s Dividend Yield of 0.77% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
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.
AVGO
54.37%
Semiconductors & Semiconductor Equipment Industry
- Max
- 196.12%
- Q3
- 87.72%
- Median
- 26.57%
- Q1
- 0.00%
- Min
- 0.00%
AVGO’s Dividend Payout Ratio of 54.37% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ANET | AVGO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.77% |
| Dividend Payout Ratio (TTM) | 0.00% | 54.37% |
Valuation
Price-to-Earnings Ratio (TTM)
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.
AVGO
105.02
Semiconductors & Semiconductor Equipment Industry
- Max
- 109.37
- Q3
- 57.11
- Median
- 28.95
- Q1
- 22.13
- Min
- 11.14
A P/E Ratio of 105.02 places AVGO in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
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.
AVGO
23.78
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 23.78, AVGO 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.
Price-to-Book Ratio (MRQ)
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.
AVGO
13.56
Semiconductors & Semiconductor Equipment Industry
- Max
- 13.56
- Q3
- 6.75
- Median
- 3.68
- Q1
- 1.89
- Min
- 0.60
AVGO’s P/B Ratio of 13.56 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.
Valuation at a Glance
| Symbol | ANET | AVGO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 51.33 | 105.02 |
| Price-to-Sales Ratio (TTM) | 20.99 | 23.78 |
| Price-to-Book Ratio (MRQ) | 11.79 | 13.56 |
| Price-to-Free Cash Flow Ratio (TTM) | 41.98 | 59.76 |