ANET vs. CSCO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ANET and CSCO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ANET | CSCO |
|---|---|---|
| Company Name | Arista Networks Inc | Cisco Systems, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Communications Equipment | Communications Equipment |
| Market Capitalization | 165.24 billion USD | 265.76 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | June 6, 2014 | February 16, 1990 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ANET and CSCO 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 | CSCO |
|---|---|---|
| 5-Day Price Return | -3.67% | -3.16% |
| 13-Week Price Return | 35.96% | 4.99% |
| 26-Week Price Return | 19.79% | 5.12% |
| 52-Week Price Return | 49.36% | 34.27% |
| Month-to-Date Return | 6.70% | -1.42% |
| Year-to-Date Return | 18.95% | 13.36% |
| 10-Day Avg. Volume | 8.29M | 27.80M |
| 3-Month Avg. Volume | 9.86M | 20.51M |
| 3-Month Volatility | 53.44% | 19.17% |
| Beta | 1.48 | 0.98 |
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.
CSCO
22.74%
Communications Equipment Industry
- Max
- 32.05%
- Q3
- 19.58%
- Median
- 11.77%
- Q1
- 2.23%
- Min
- -11.93%
In the upper quartile for the Communications Equipment industry, CSCO’s Return on Equity of 22.74% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
CSCO
18.45%
Communications Equipment Industry
- Max
- 23.65%
- Q3
- 14.32%
- Median
- 5.31%
- Q1
- 1.45%
- Min
- -12.72%
A Net Profit Margin of 18.45% places CSCO in the upper quartile for the Communications 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.
CSCO
21.38%
Communications Equipment Industry
- Max
- 42.27%
- Q3
- 18.90%
- Median
- 6.21%
- Q1
- 2.97%
- Min
- -20.72%
An Operating Profit Margin of 21.38% places CSCO in the upper quartile for the Communications 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 | CSCO |
|---|---|---|
| Return on Equity (TTM) | 32.30% | 22.74% |
| Return on Assets (TTM) | 22.45% | 8.58% |
| Net Profit Margin (TTM) | 40.89% | 18.45% |
| Operating Profit Margin (TTM) | 43.14% | 21.38% |
| Gross Profit Margin (TTM) | 64.24% | 65.56% |
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.
CSCO
1.01
Communications Equipment Industry
- Max
- 1.72
- Q3
- 1.72
- Median
- 1.46
- Q1
- 1.18
- Min
- 0.93
CSCO’s Current Ratio of 1.01 falls into the lower quartile for the Communications 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.
CSCO
0.60
Communications Equipment Industry
- Max
- 1.55
- Q3
- 0.92
- Median
- 0.55
- Q1
- 0.30
- Min
- 0.00
CSCO’s Debt-to-Equity Ratio of 0.60 is typical for the Communications Equipment 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
- 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.
CSCO
20.35
Communications Equipment Industry
- Max
- 181.73
- Q3
- 113.63
- Median
- 7.59
- Q1
- 3.82
- Min
- -5.39
CSCO’s Interest Coverage Ratio of 20.35 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ANET | CSCO |
|---|---|---|
| Current Ratio (MRQ) | 3.33 | 1.01 |
| Quick Ratio (MRQ) | 2.58 | 0.92 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 0.60 |
| Interest Coverage Ratio (TTM) | 171.78 | 20.35 |
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.
CSCO
2.42%
Communications Equipment Industry
- Max
- 3.88%
- Q3
- 2.75%
- Median
- 0.93%
- Q1
- 0.00%
- Min
- 0.00%
CSCO’s Dividend Yield of 2.42% is consistent with its peers in the Communications 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.
CSCO
61.58%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 55.91%
- Median
- 28.42%
- Q1
- 0.00%
- Min
- 0.00%
CSCO’s Dividend Payout Ratio of 61.58% is in the upper quartile for the Communications Equipment 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 | CSCO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.42% |
| Dividend Payout Ratio (TTM) | 0.00% | 61.58% |
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.
CSCO
25.42
Communications Equipment Industry
- Max
- 57.30
- Q3
- 47.92
- Median
- 27.50
- Q1
- 17.89
- Min
- 13.89
CSCO’s P/E Ratio of 25.42 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.
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.
CSCO
4.69
Communications Equipment Industry
- Max
- 11.03
- Q3
- 5.53
- Median
- 2.20
- Q1
- 0.99
- Min
- 0.40
CSCO’s P/S Ratio of 4.69 aligns with the market consensus for the Communications Equipment 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
- 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.
CSCO
5.71
Communications Equipment Industry
- Max
- 9.66
- Q3
- 5.60
- Median
- 3.73
- Q1
- 2.67
- Min
- 0.30
CSCO’s P/B Ratio of 5.71 is in the upper tier for the Communications 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 | CSCO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 51.33 | 25.42 |
| Price-to-Sales Ratio (TTM) | 20.99 | 4.69 |
| Price-to-Book Ratio (MRQ) | 11.79 | 5.71 |
| Price-to-Free Cash Flow Ratio (TTM) | 41.98 | 20.00 |