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

Company Overview

ANET’s market capitalization of 117.83 billion USD is substantially larger than MPWR’s 32.93 billion USD, indicating a significant difference in their market valuations.

With betas of 1.39 for ANET and 1.18 for MPWR, both stocks show similar sensitivity to overall market movements.

Performance Comparison

This chart compares the performance of ANET and MPWR over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of ANET and MPWR. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• ANET’s Price-to-Earnings (P/E) ratio of 39.04 is very high. This often means that its current market price reflects high investor confidence in its future earnings potential, but it could also suggest the stock is expensive relative to its current earnings power.
• ANET’s Price-to-Book (P/B) ratio of 11.68 and MPWR’s P/B ratio of 10.07 are both very high. For ANET, this typically means the market assigns a much greater value to the company than its net accounting worth, often due to factors like robust intangible assets or superior growth prospects. MPWR’s high P/B also suggests investors have high expectations for its future performance and are pricing it well above its book value.

Dividend Comparison

ANET currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while MPWR provides a 0.77% dividend yield, offering investors a component of income return.

Financial Strength Metrics Comparison

Explore the financial strength details for ANET and MPWR in the table below.