ANET vs. CSCO: A Head-to-Head Stock Comparison
Here’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 Group | Technology Hardware & Equipment | Technology Hardware & Equipment |
| GICS Industry | Communications Equipment | Communications Equipment |
| GICS Sub-Industry | Communications Equipment | Communications Equipment |
| Market Capitalization | 171.79 billion USD | 389.93 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | June 6, 2014 | February 16, 1990 |
| Security Type | Common Stock | Common Stock |
CSCO’s market capitalization (389.93 billion USD) is significantly greater than ANET’s (171.79 billion USD), highlighting its more substantial market valuation.
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 | -19.85% | 4.69% |
| 13-Week Price Return | -0.77% | 16.39% |
| 26-Week Price Return | -13.43% | 32.60% |
| 52-Week Price Return | 57.69% | 65.17% |
| Month-to-Date Return | -21.01% | 7.89% |
| Year-to-Date Return | 4.12% | 28.16% |
| 10-Day Avg. Volume | 14.31M | 19.68M |
| 3-Month Avg. Volume | 8.48M | 22.20M |
| 3-Month Volatility | 60.60% | 36.87% |
| Beta | 1.64 | 0.93 |
ANET’s beta of 1.64 points to significantly higher volatility compared to CSCO (beta: 0.93), suggesting ANET has greater potential for both gains and losses relative to market movements.
Profitability
Return on Equity (TTM)
ANET
30.58%
Communications Equipment Industry
- Max
- 30.68%
- Q3
- 22.70%
- Median
- 5.79%
- Q1
- -4.98%
- Min
- -24.02%
In the upper quartile for the Communications Equipment industry, ANET’s Return on Equity of 30.58% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
CSCO
23.64%
Communications Equipment Industry
- Max
- 30.68%
- Q3
- 22.70%
- Median
- 5.79%
- Q1
- -4.98%
- Min
- -24.02%
In the upper quartile for the Communications Equipment industry, CSCO’s Return on Equity of 23.64% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
ANET
38.32%
Communications Equipment Industry
- Max
- 38.32%
- Q3
- 15.99%
- Median
- 4.19%
- Q1
- -3.33%
- Min
- -8.55%
A Net Profit Margin of 38.32% places ANET in the upper quartile for the Communications Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
CSCO
18.76%
Communications Equipment Industry
- Max
- 38.32%
- Q3
- 15.99%
- Median
- 4.19%
- Q1
- -3.33%
- Min
- -8.55%
A Net Profit Margin of 18.76% 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
42.79%
Communications Equipment Industry
- Max
- 35.09%
- Q3
- 14.28%
- Median
- 4.15%
- Q1
- -0.29%
- Min
- -11.57%
ANET’s Operating Profit Margin of 42.79% 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
22.75%
Communications Equipment Industry
- Max
- 35.09%
- Q3
- 14.28%
- Median
- 4.15%
- Q1
- -0.29%
- Min
- -11.57%
An Operating Profit Margin of 22.75% 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) | 30.58% | 23.64% |
| Return on Assets (TTM) | 19.66% | 9.11% |
| Net Profit Margin (TTM) | 38.32% | 18.76% |
| Operating Profit Margin (TTM) | 42.79% | 22.75% |
| Gross Profit Margin (TTM) | 63.54% | 64.81% |
Financial Strength
Current Ratio (MRQ)
ANET
2.83
Communications Equipment Industry
- Max
- 3.83
- Q3
- 2.79
- Median
- 2.03
- Q1
- 1.47
- Min
- 0.95
ANET’s Current Ratio of 2.83 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.
CSCO
0.96
Communications Equipment Industry
- Max
- 3.83
- Q3
- 2.79
- Median
- 2.03
- Q1
- 1.47
- Min
- 0.95
CSCO’s Current Ratio of 0.96 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
- 1.78
- Q3
- 1.01
- Median
- 0.24
- Q1
- 0.00
- 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
0.63
Communications Equipment Industry
- Max
- 1.78
- Q3
- 1.01
- Median
- 0.24
- Q1
- 0.00
- Min
- 0.00
CSCO’s Debt-to-Equity Ratio of 0.63 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
- 34.73
- Q3
- 19.70
- Median
- 3.57
- Q1
- -0.74
- Min
- -31.15
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.
CSCO
22.76
Communications Equipment Industry
- Max
- 34.73
- Q3
- 19.70
- Median
- 3.57
- Q1
- -0.74
- Min
- -31.15
CSCO’s Interest Coverage Ratio of 22.76 is in the upper quartile for the Communications Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ANET | CSCO |
|---|---|---|
| Current Ratio (MRQ) | 2.83 | 0.96 |
| Quick Ratio (MRQ) | 2.18 | 0.85 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 0.63 |
| Interest Coverage Ratio (TTM) | 171.78 | 22.76 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | ANET | CSCO |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 35.13% | 9.71% |
| Revenue Growth (TTM vs Prior YoY) | 30.57% | 9.00% |
| 3-Year Revenue CAGR | 27.15% | 3.19% |
| 5-Year Revenue CAGR | 31.19% | 2.82% |
EPS Growth
EPS Growth at a Glance
| Symbol | ANET | CSCO |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 26.22% | 31.46% |
| EPS Growth (TTM vs Prior YoY) | 23.51% | 21.66% |
| 3-Year EPS CAGR | 37.09% | -3.32% |
| 5-Year EPS CAGR | 40.70% | -0.69% |
Dividend
Dividend Yield (TTM)
ANET
0.00%
Communications Equipment Industry
- Max
- 0.00%
- Q3
- 0.00%
- 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.
CSCO
1.66%
Communications Equipment Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CSCO’s Dividend Yield of 1.66% is exceptionally high, placing it well above the typical range for the Communications Equipment 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
- 0.00%
- Q3
- 0.00%
- 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.
CSCO
58.56%
Communications Equipment Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 58.56%, CSCO’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Communications Equipment 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 | CSCO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.66% |
| Dividend Payout Ratio (TTM) | 0.00% | 58.56% |
Valuation
Price-to-Earnings Ratio (TTM)
ANET
47.30
Communications Equipment Industry
- Max
- 80.44
- Q3
- 79.89
- Median
- 48.80
- Q1
- 30.70
- Min
- 11.75
ANET’s P/E Ratio of 47.30 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.
CSCO
35.21
Communications Equipment Industry
- Max
- 80.44
- Q3
- 79.89
- Median
- 48.80
- Q1
- 30.70
- Min
- 11.75
CSCO’s P/E Ratio of 35.21 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
18.12
Communications Equipment Industry
- Max
- 26.44
- Q3
- 13.77
- Median
- 3.61
- Q1
- 2.58
- Min
- 0.55
ANET’s P/S Ratio of 18.12 is in the upper echelon for the Communications Equipment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
CSCO
6.60
Communications Equipment Industry
- Max
- 26.44
- Q3
- 13.77
- Median
- 3.61
- Q1
- 2.58
- Min
- 0.55
CSCO’s P/S Ratio of 6.60 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
11.44
Communications Equipment Industry
- Max
- 23.21
- Q3
- 10.67
- Median
- 4.66
- Q1
- 1.71
- Min
- 1.02
ANET’s P/B Ratio of 11.44 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.
CSCO
6.38
Communications Equipment Industry
- Max
- 23.21
- Q3
- 10.67
- Median
- 4.66
- Q1
- 1.71
- Min
- 1.02
CSCO’s P/B Ratio of 6.38 is within the conventional range for the Communications Equipment 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 | CSCO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 47.30 | 35.21 |
| Price-to-Sales Ratio (TTM) | 18.12 | 6.60 |
| Price-to-Book Ratio (MRQ) | 11.44 | 6.38 |
| Price-to-Free Cash Flow Ratio (TTM) | 33.34 | 31.85 |