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ANET vs. EA: A Head-to-Head Stock Comparison

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Here’s a clear look at ANET and EA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ANET’s market capitalization of 128.76 billion USD is substantially larger than EA’s 38.96 billion USD, indicating a significant difference in their market valuations.

ANET’s beta of 1.38 points to significantly higher volatility compared to EA (beta: 0.71), suggesting ANET has greater potential for both gains and losses relative to market movements.

SymbolANETEA
Company NameArista Networks, Inc.Electronic Arts Inc.
CountryUSUS
SectorTechnologyTechnology
IndustryComputer HardwareElectronic Gaming & Multimedia
CEOJayshree V. UllalAndrew Wilson
Price102.52 USD155.37 USD
Market Cap128.76 billion USD38.96 billion USD
Beta1.380.71
ExchangeNYSENASDAQ
IPO DateJune 6, 2014September 20, 1989
ADRNoNo

Historical Performance

This chart compares the performance of ANET and EA 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.

ANET vs. EA: Growth of a $10,000 investment over the past one year.

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.

EA

15.68%

Electronic Gaming & Multimedia Industry

Max
22.45%
Q3
13.61%
Median
-5.53%
Q1
-70.13%
Min
-121.78%

In the upper quartile for the Electronic Gaming & Multimedia industry, EA’s Return on Equity of 15.68% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ANET vs. EA: A comparison of their ROE against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

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.

EA

11.36%

Electronic Gaming & Multimedia Industry

Max
17.62%
Q3
11.24%
Median
1.98%
Q1
-22.67%
Min
-64.64%

In the upper quartile for the Electronic Gaming & Multimedia industry, EA’s Return on Invested Capital of 11.36% signifies a highly effective use of its capital to generate profits when compared to its peers.

ANET vs. EA: A comparison of their ROIC against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

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.

EA

15.03%

Electronic Gaming & Multimedia Industry

Max
28.20%
Q3
16.08%
Median
10.20%
Q1
-7.35%
Min
-22.94%

EA’s Net Profit Margin of 15.03% is aligned with the median group of its peers in the Electronic Gaming & Multimedia industry. This indicates its ability to convert revenue into profit is typical for the sector.

ANET vs. EA: A comparison of their Net Profit Margin against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

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.

EA

20.45%

Electronic Gaming & Multimedia Industry

Max
28.10%
Q3
17.15%
Median
5.89%
Q1
-19.43%
Min
-26.48%

An Operating Profit Margin of 20.45% places EA in the upper quartile for the Electronic Gaming & Multimedia industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ANET vs. EA: A comparison of their Operating Margin against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

Profitability at a Glance

SymbolANETEA
Return on Equity (TTM)32.05%15.68%
Return on Assets (TTM)20.86%9.06%
Return on Invested Capital (TTM)23.89%11.36%
Net Profit Margin (TTM)40.72%15.03%
Operating Profit Margin (TTM)42.27%20.45%
Gross Profit Margin (TTM)64.09%79.08%

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.

EA

0.95

Electronic Gaming & Multimedia Industry

Max
3.22
Q3
2.77
Median
1.19
Q1
0.82
Min
0.01

EA’s Current Ratio of 0.95 aligns with the median group of the Electronic Gaming & Multimedia industry, indicating that its short-term liquidity is in line with its sector peers.

ANET vs. EA: A comparison of their Current Ratio against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

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.

EA

0.31

Electronic Gaming & Multimedia Industry

Max
1.92
Q3
1.14
Median
0.31
Q1
0.17
Min
0.09

EA’s Debt-to-Equity Ratio of 0.31 is typical for the Electronic Gaming & Multimedia industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ANET vs. EA: A comparison of their D/E Ratio against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

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.

EA

20.61

Electronic Gaming & Multimedia Industry

Max
20.61
Q3
4.69
Median
-1.31
Q1
-20.23
Min
-25.09

EA’s Interest Coverage Ratio of 20.61 is in the upper quartile for the Electronic Gaming & Multimedia industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ANET vs. EA: A comparison of their Interest Coverage against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

Financial Strength at a Glance

SymbolANETEA
Current Ratio (TTM)3.930.95
Quick Ratio (TTM)3.310.95
Debt-to-Equity Ratio (TTM)--0.31
Debt-to-Asset Ratio (TTM)--0.16
Net Debt-to-EBITDA Ratio (TTM)-0.58-0.10
Interest Coverage Ratio (TTM)--20.61

Growth

The following charts compare key year-over-year (YoY) growth metrics for ANET and EA. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ANET vs. EA: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ANET vs. EA: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ANET vs. EA: A comparison of their annual year-over-year 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.

EA

0.49%

Electronic Gaming & Multimedia Industry

Max
8.44%
Q3
0.36%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 0.49%, EA offers a more attractive income stream than most of its peers in the Electronic Gaming & Multimedia industry, signaling a strong commitment to shareholder returns.

ANET vs. EA: A comparison of their Dividend Yield against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

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.

EA

17.75%

Electronic Gaming & Multimedia Industry

Max
106.44%
Q3
13.31%
Median
0.00%
Q1
0.00%
Min
0.00%

EA’s Dividend Payout Ratio of 17.75% is in the upper quartile for the Electronic Gaming & Multimedia 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.

ANET vs. EA: A comparison of their Payout Ratio against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

Dividend at a Glance

SymbolANETEA
Dividend Yield (TTM)0.00%0.49%
Dividend Payout Ratio (TTM)0.00%17.75%

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.

EA

36.31

Electronic Gaming & Multimedia Industry

Max
36.87
Q3
20.95
Median
12.73
Q1
7.31
Min
3.67

A P/E Ratio of 36.31 places EA in the upper quartile for the Electronic Gaming & Multimedia industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ANET vs. EA: A comparison of their P/E Ratio against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

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.

EA

1.95

Electronic Gaming & Multimedia Industry

Max
2.97
Q3
2.24
Median
1.87
Q1
1.76
Min
1.76

EA’s Forward PEG Ratio of 1.95 is within the middle range of its peers in the Electronic Gaming & Multimedia industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ANET vs. EA: A comparison of their Forward PEG Ratio against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

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.

EA

5.23

Electronic Gaming & Multimedia Industry

Max
7.60
Q3
6.29
Median
3.76
Q1
1.02
Min
0.66

EA’s P/S Ratio of 5.23 aligns with the market consensus for the Electronic Gaming & Multimedia industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ANET vs. EA: A comparison of their P/S Ratio against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

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.

EA

6.37

Electronic Gaming & Multimedia Industry

Max
6.47
Q3
6.47
Median
4.48
Q1
1.29
Min
0.36

The P/B Ratio is often not a primary valuation metric for the Electronic Gaming & Multimedia industry.

ANET vs. EA: A comparison of their P/B Ratio against their respective Computer Hardware and Electronic Gaming & Multimedia industry benchmarks.

Valuation at a Glance

SymbolANETEA
Price-to-Earnings Ratio (P/E, TTM)42.6636.31
Forward PEG Ratio (TTM)1.801.95
Price-to-Sales Ratio (P/S, TTM)17.315.23
Price-to-Book Ratio (P/B, TTM)12.776.37
Price-to-Free Cash Flow Ratio (P/FCF, TTM)34.0220.97
EV-to-EBITDA (TTM)39.6220.86
EV-to-Sales (TTM)17.075.20