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

Updated on July 7, 2025

Here’s a clear look at ANET and MSI, 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 MSI’s 70.91 billion USD, indicating a significant difference in their market valuations.

With betas of 1.38 for ANET and 0.97 for MSI, both stocks show similar sensitivity to overall market movements.

Symbol	ANET	MSI
Company Name	Arista Networks, Inc.	Motorola Solutions, Inc.
Country	US	US
Sector	Technology	Technology
Industry	Computer Hardware	Communication Equipment
CEO	Jayshree V. Ullal	Gregory Q. Brown
Price	102.52 USD	424.84 USD
Market Cap	128.76 billion USD	70.91 billion USD
Beta	1.38	0.97
Exchange	NYSE	NYSE
IPO Date	June 6, 2014	March 17, 1980
ADR	No	No

Historical Performance

This chart compares the performance of ANET and MSI 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. MSI: 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.

MSI

149.56%

Communication Equipment Industry

Max: 30.07%
Q3: 8.07%
Median: 1.84%
Q1: -11.93%
Min: -31.65%

MSI’s Return on Equity of 149.56% is exceptionally high, placing it well beyond the typical range for the Communication Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ANET vs. MSI: A comparison of their ROE against their respective Computer Hardware and Communication Equipment 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.

MSI

22.82%

Communication Equipment Industry

Max: 11.59%
Q3: 6.61%
Median: 2.97%
Q1: -2.58%
Min: -13.18%

MSI’s Return on Invested Capital of 22.82% is exceptionally high, placing it well beyond the typical range for the Communication Equipment industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

ANET vs. MSI: A comparison of their ROIC against their respective Computer Hardware and Communication Equipment 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.

MSI

18.67%

Communication Equipment Industry

Max: 23.65%
Q3: 9.21%
Median: 2.46%
Q1: -8.56%
Min: -29.87%

A Net Profit Margin of 18.67% places MSI in the upper quartile for the Communication Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

ANET vs. MSI: A comparison of their Net Profit Margin against their respective Computer Hardware and Communication Equipment 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.

MSI

25.20%

Communication Equipment Industry

Max: 30.72%
Q3: 11.64%
Median: 5.79%
Q1: -2.28%
Min: -18.20%

An Operating Profit Margin of 25.20% places MSI in the upper quartile for the Communication Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ANET vs. MSI: A comparison of their Operating Margin against their respective Computer Hardware and Communication Equipment industry benchmarks.

Profitability at a Glance

Symbol	ANET	MSI
Return on Equity (TTM)	32.05%	149.56%
Return on Assets (TTM)	20.86%	14.18%
Return on Invested Capital (TTM)	23.89%	22.82%
Net Profit Margin (TTM)	40.72%	18.67%
Operating Profit Margin (TTM)	42.27%	25.20%
Gross Profit Margin (TTM)	64.09%	50.97%

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.

MSI

1.20

Communication Equipment Industry

Max: 3.40
Q3: 2.59
Median: 1.62
Q1: 1.32
Min: 0.86

MSI’s Current Ratio of 1.20 falls into the lower quartile for the Communication Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ANET vs. MSI: A comparison of their Current Ratio against their respective Computer Hardware and Communication Equipment 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.

MSI

3.98

Communication Equipment Industry

Max: 1.82
Q3: 1.00
Median: 0.53
Q1: 0.20
Min: 0.02

With a Debt-to-Equity Ratio of 3.98, MSI operates with exceptionally high leverage compared to the Communication Equipment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

ANET vs. MSI: A comparison of their D/E Ratio against their respective Computer Hardware and Communication Equipment 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.

MSI

11.80

Communication Equipment Industry

Max: 16.12
Q3: 9.22
Median: 2.52
Q1: -0.75
Min: -12.07

MSI’s Interest Coverage Ratio of 11.80 is in the upper quartile for the Communication Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ANET vs. MSI: A comparison of their Interest Coverage against their respective Computer Hardware and Communication Equipment industry benchmarks.

Financial Strength at a Glance

Symbol	ANET	MSI
Current Ratio (TTM)	3.93	1.20
Quick Ratio (TTM)	3.31	1.03
Debt-to-Equity Ratio (TTM)	--	3.98
Debt-to-Asset Ratio (TTM)	--	0.45
Net Debt-to-EBITDA Ratio (TTM)	-0.58	1.57
Interest Coverage Ratio (TTM)	--	11.80

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ANET vs. MSI: 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.

MSI

1.00%

Communication Equipment Industry

Max: 4.72%
Q3: 0.38%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 1.00%, MSI offers a more attractive income stream than most of its peers in the Communication Equipment industry, signaling a strong commitment to shareholder returns.

ANET vs. MSI: A comparison of their Dividend Yield against their respective Computer Hardware and Communication Equipment 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.

MSI

32.89%

Communication Equipment Industry

Max: 91.96%
Q3: 26.44%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSI’s Dividend Payout Ratio of 32.89% is in the upper quartile for the Communication 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.

ANET vs. MSI: A comparison of their Payout Ratio against their respective Computer Hardware and Communication Equipment industry benchmarks.

Dividend at a Glance

Symbol	ANET	MSI
Dividend Yield (TTM)	0.00%	1.00%
Dividend Payout Ratio (TTM)	0.00%	32.89%

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.

MSI

34.66

Communication Equipment Industry

Max: 44.37
Q3: 41.98
Median: 30.61
Q1: 23.44
Min: 2.14

MSI’s P/E Ratio of 34.66 is within the middle range for the Communication 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.

ANET vs. MSI: A comparison of their P/E Ratio against their respective Computer Hardware and Communication Equipment 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.

MSI

4.11

Communication Equipment Industry

Max: 15.97
Q3: 6.99
Median: 2.78
Q1: 0.66
Min: 0.05

The Forward PEG Ratio is often not a primary valuation metric in the Communication Equipment industry.

ANET vs. MSI: A comparison of their Forward PEG Ratio against their respective Computer Hardware and Communication Equipment 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.

MSI

6.47

Communication Equipment Industry

Max: 6.38
Q3: 3.88
Median: 2.17
Q1: 1.15
Min: 0.37

With a P/S Ratio of 6.47, MSI trades at a valuation that eclipses even the highest in the Communication Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ANET vs. MSI: A comparison of their P/S Ratio against their respective Computer Hardware and Communication Equipment 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.

MSI

43.21

Communication Equipment Industry

Max: 14.42
Q3: 7.01
Median: 3.09
Q1: 1.38
Min: 0.41

At 43.21, MSI’s P/B Ratio is at an extreme premium to the Communication 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.

ANET vs. MSI: A comparison of their P/B Ratio against their respective Computer Hardware and Communication Equipment industry benchmarks.

Valuation at a Glance

Symbol	ANET	MSI
Price-to-Earnings Ratio (P/E, TTM)	42.66	34.66
Forward PEG Ratio (TTM)	1.80	4.11
Price-to-Sales Ratio (P/S, TTM)	17.31	6.47
Price-to-Book Ratio (P/B, TTM)	12.77	43.21
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	34.02	31.23
EV-to-EBITDA (TTM)	39.62	24.03
EV-to-Sales (TTM)	17.07	6.92