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 Profile
| Symbol | ANET | CRM |
|---|---|---|
| Company Name | Arista Networks Inc | Salesforce, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Communications Equipment | Software |
| Market Capitalization | 187.90 billion USD | 233.98 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | June 6, 2014 | June 23, 2004 |
| Security Type | Common Stock | Common Stock |
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.
Historical Performance at a Glance
| Symbol | ANET | CRM |
|---|---|---|
| 5-Day Price Return | 2.60% | 3.70% |
| 13-Week Price Return | 47.33% | -8.90% |
| 26-Week Price Return | 90.47% | -9.04% |
| 52-Week Price Return | 53.29% | -12.51% |
| Month-to-Date Return | 2.60% | 3.70% |
| Year-to-Date Return | 35.26% | -26.49% |
| 10-Day Avg. Volume | 7.02M | 8.51M |
| 3-Month Avg. Volume | 9.48M | 8.62M |
| 3-Month Volatility | 49.38% | 27.31% |
| Beta | 1.40 | 1.25 |
Profitability
Return on Equity (TTM)
ANET
32.30%
Communications Equipment Industry
- Max
- 32.30%
- Q3
- 20.90%
- Median
- 9.10%
- Q1
- 4.29%
- Min
- -13.50%
In the upper quartile for the Communications Equipment industry, ANET’s Return on Equity of 32.30% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
CRM
11.03%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
CRM’s Return on Equity of 11.03% is on par with the norm for the Software 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
- 12.56%
- Median
- 5.62%
- Q1
- 2.50%
- Min
- -3.09%
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.
CRM
16.87%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
CRM’s Net Profit Margin of 16.87% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
ANET
43.14%
Communications Equipment Industry
- Max
- 25.23%
- Q3
- 13.72%
- Median
- 6.44%
- Q1
- 3.00%
- Min
- -10.95%
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.
CRM
18.89%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
CRM’s Operating Profit Margin of 18.89% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ANET | CRM |
|---|---|---|
| Return on Equity (TTM) | 32.30% | 11.03% |
| Return on Assets (TTM) | 22.45% | 6.82% |
| Net Profit Margin (TTM) | 40.89% | 16.87% |
| Operating Profit Margin (TTM) | 43.14% | 18.89% |
| Gross Profit Margin (TTM) | 64.24% | 77.65% |
Financial Strength
Current Ratio (MRQ)
ANET
3.33
Communications Equipment Industry
- Max
- 3.33
- Q3
- 2.13
- Median
- 1.55
- Q1
- 1.15
- Min
- 0.91
ANET’s Current Ratio of 3.33 is in the upper quartile for the Communications Equipment industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
CRM
1.12
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
CRM’s Current Ratio of 1.12 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
ANET
0.00
Communications Equipment Industry
- Max
- 1.44
- Q3
- 0.86
- Median
- 0.53
- Q1
- 0.22
- 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.
CRM
0.14
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
CRM’s Debt-to-Equity Ratio of 0.14 is typical for the Software 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 (TTM)
ANET
171.78
Communications Equipment Industry
- Max
- 55.49
- Q3
- 34.19
- Median
- 7.59
- Q1
- 3.73
- Min
- -9.94
With an Interest Coverage Ratio of 171.78, ANET demonstrates a superior capacity to service its debt, placing it well above the typical range for the Communications Equipment industry. This stems from either robust earnings or a conservative debt load.
CRM
19.86
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
CRM’s Interest Coverage Ratio of 19.86 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ANET | CRM |
|---|---|---|
| Current Ratio (MRQ) | 3.33 | 1.12 |
| Quick Ratio (MRQ) | 2.58 | 1.01 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 0.14 |
| Interest Coverage Ratio (TTM) | 171.78 | 19.86 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ANET
0.00%
Communications Equipment Industry
- Max
- 8.13%
- Q3
- 3.29%
- Median
- 0.94%
- 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
0.70%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CRM’s Dividend Yield of 0.70% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
ANET
0.00%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 70.91%
- Median
- 30.78%
- 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
23.50%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 23.50%, CRM’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | ANET | CRM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.70% |
| Dividend Payout Ratio (TTM) | 0.00% | 23.50% |
Valuation
Price-to-Earnings Ratio (TTM)
ANET
56.24
Communications Equipment Industry
- Max
- 103.74
- Q3
- 61.65
- Median
- 26.20
- Q1
- 18.12
- Min
- 4.19
ANET’s P/E Ratio of 56.24 is within the middle range for the Communications Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
CRM
33.80
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
CRM’s P/E Ratio of 33.80 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
ANET
23.00
Communications Equipment Industry
- Max
- 6.86
- Q3
- 6.24
- Median
- 2.44
- Q1
- 1.02
- Min
- 0.48
With a P/S Ratio of 23.00, 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.
CRM
5.70
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
CRM’s P/S Ratio of 5.70 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
ANET
11.79
Communications Equipment Industry
- Max
- 6.28
- Q3
- 5.73
- Median
- 3.32
- Q1
- 2.02
- Min
- 0.42
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.
CRM
4.03
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
CRM’s P/B Ratio of 4.03 is within the conventional range for the Software 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.
Valuation at a Glance
| Symbol | ANET | CRM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 56.24 | 33.80 |
| Price-to-Sales Ratio (TTM) | 23.00 | 5.70 |
| Price-to-Book Ratio (MRQ) | 11.79 | 4.03 |
| Price-to-Free Cash Flow Ratio (TTM) | 46.00 | 18.02 |