ANET vs. ERIC: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ANET and ERIC, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
ANET dwarfs ERIC in market cap, clocking in at 116.08 billion USD—about 3.95 times the 29.42 billion USD of its counterpart.
ANET rides a wilder wave with a beta of 1.39, hinting at bigger swings than ERIC’s steadier 0.44.
Quick note: ERIC sports an ADR tag, marking it as a foreign player on U.S. exchanges, unlike the homegrown ANET.
| Symbol | ANET | ERIC |
|---|---|---|
| Company Name | Arista Networks, Inc. | Telefonaktiebolaget LM Ericsson (publ) |
| Country | US | SE |
| Sector | Technology | Technology |
| Industry | Computer Hardware | Communication Equipment |
| CEO | Ms. Jayshree V. Ullal | Mr. Anthony F. Bartolo |
| Price | 92.43 USD | 8.86 USD |
| Market Cap | 116.08 billion USD | 29.42 billion USD |
| Beta | 1.387 | 0.437 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 6, 2014 | August 24, 1981 |
| ADR | No | Yes |
Performance Comparison
This chart compares the performance of ANET and ERIC over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
The section examines key financial ratios to assess the valuation of ANET and ERIC based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- ERIC has a notably high P/E of 175.68, where its market price commands a steep multiple of its earnings from the past year—indicating investors are pricing in significant future potential. On the flip side, ANET at 38.46 maintains a P/E within a more standard range, tied closer to its current profitability.
- ERIC has a negative Forward PEG of -63.29, suggesting analysts predict either a drop in earnings or no profits at all in the near future—a red flag for its growth trajectory. Meanwhile, ANET at 2.11 avoids such a pessimistic forecast.
| Symbol | ANET | ERIC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 38.46 | 175.68 |
| Forward PEG Ratio (TTM) | 2.11 | -63.29 |
| Price-to-Sales Ratio (P/S, TTM) | 15.61 | 1.13 |
| Price-to-Book Ratio (P/B, TTM) | 11.51 | 3.29 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 30.67 | 6.71 |
| EV-to-EBITDA (TTM) | 35.66 | 6.12 |
| EV-to-Sales (TTM) | 15.36 | 1.12 |
| EV-to-Free Cash Flow (TTM) | 30.18 | 6.66 |
Dividend Comparison
ANET pays no dividends, focusing all profits on growth, appealing to capital-gains investors. Meanwhile, ERIC’s 3.28% yield rewards shareholders, showing financial confidence while supporting objectives—a contrast to ANET’s growth-only approach.
| Symbol | ANET | ERIC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 3.28% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ANET and ERIC, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- ANET posts an interest coverage of “--”, hinting at interest costs so low they’re negligible—often from scant debt or dirt-cheap rates—while ERIC at 6.76 handles interest with solid earnings.
| Symbol | ANET | ERIC |
|---|---|---|
| Current Ratio (TTM) | 3.93 | 1.09 |
| Quick Ratio (TTM) | 3.31 | 0.88 |
| Debt-to-Equity Ratio (TTM) | 0.00 | 0.49 |
| Debt-to-Assets Ratio (TTM) | 0.00 | 0.15 |
| Interest Coverage Ratio (TTM) | -- | 6.76 |