ANET vs. CRM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ANET and CRM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
CRM’s market capitalization of 260.18 billion USD is significantly greater than ANET’s 128.76 billion USD, highlighting its more substantial market valuation.
With betas of 1.38 for ANET and 1.38 for CRM, both stocks show similar sensitivity to overall market movements.
| Symbol | ANET | CRM |
|---|---|---|
| Company Name | Arista Networks, Inc. | Salesforce, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Computer Hardware | Software - Application |
| CEO | Jayshree V. Ullal | Marc R. Benioff |
| Price | 102.52 USD | 272.15 USD |
| Market Cap | 128.76 billion USD | 260.18 billion USD |
| Beta | 1.38 | 1.38 |
| Exchange | NYSE | NYSE |
| IPO Date | June 6, 2014 | June 23, 2004 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ANET and CRM 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.
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.
CRM
10.43%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
CRM’s Return on Equity of 10.43% is on par with the norm for the Software - Application industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
CRM
8.16%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
CRM’s Return on Invested Capital of 8.16% is in line with the norm for the Software - Application industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
CRM
16.08%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 16.08% places CRM in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.
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.
CRM
19.27%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 19.27% places CRM in the upper quartile for the Software - Application 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 | CRM |
|---|---|---|
| Return on Equity (TTM) | 32.05% | 10.43% |
| Return on Assets (TTM) | 20.86% | 6.29% |
| Return on Invested Capital (TTM) | 23.89% | 8.16% |
| Net Profit Margin (TTM) | 40.72% | 16.08% |
| Operating Profit Margin (TTM) | 42.27% | 19.27% |
| Gross Profit Margin (TTM) | 64.09% | 77.34% |
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.
CRM
1.07
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
CRM’s Current Ratio of 1.07 falls into the lower quartile for the Software - Application 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
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.
CRM
0.19
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
CRM’s Debt-to-Equity Ratio of 0.19 is typical for the Software - Application industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
CRM
--
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
Interest Coverage Ratio data for CRM is currently unavailable.
Financial Strength at a Glance
| Symbol | ANET | CRM |
|---|---|---|
| Current Ratio (TTM) | 3.93 | 1.07 |
| Quick Ratio (TTM) | 3.31 | 1.07 |
| Debt-to-Equity Ratio (TTM) | -- | 0.19 |
| Debt-to-Asset Ratio (TTM) | -- | 0.12 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.58 | 0.04 |
| Interest Coverage Ratio (TTM) | -- | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ANET and CRM. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
CRM
0.60%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.60%, CRM offers a more attractive income stream than most of its peers in the Software - Application industry, signaling a strong commitment to shareholder returns.
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.
CRM
25.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CRM’s Dividend Payout Ratio of 25.00% is in the upper quartile for the Software - Application industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ANET | CRM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.60% |
| Dividend Payout Ratio (TTM) | 0.00% | 25.00% |
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.
CRM
42.51
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
CRM’s P/E Ratio of 42.51 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
CRM
3.28
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
CRM’s Forward PEG Ratio of 3.28 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
CRM
6.74
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
CRM’s P/S Ratio of 6.74 aligns with the market consensus for the Software - Application industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
CRM
4.35
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
Valuation at a Glance
| Symbol | ANET | CRM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 42.66 | 42.51 |
| Forward PEG Ratio (TTM) | 1.80 | 3.28 |
| Price-to-Sales Ratio (P/S, TTM) | 17.31 | 6.74 |
| Price-to-Book Ratio (P/B, TTM) | 12.77 | 4.35 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 34.02 | 20.57 |
| EV-to-EBITDA (TTM) | 39.62 | 23.07 |
| EV-to-Sales (TTM) | 17.07 | 6.75 |