ANET vs. NET: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ANET and NET, 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 NET’s 66.34 billion USD, indicating a significant difference in their market valuations.
With betas of 1.38 for ANET and 1.83 for NET, both stocks show similar sensitivity to overall market movements.
| Symbol | ANET | NET |
|---|---|---|
| Company Name | Arista Networks, Inc. | Cloudflare, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Computer Hardware | Software - Infrastructure |
| CEO | Jayshree V. Ullal | Matthew Prince |
| Price | 102.52 USD | 191.27 USD |
| Market Cap | 128.76 billion USD | 66.34 billion USD |
| Beta | 1.38 | 1.83 |
| Exchange | NYSE | NYSE |
| IPO Date | June 6, 2014 | September 13, 2019 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ANET and NET 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.
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.
NET
-7.55%
Software - Infrastructure Industry
- Max
- 80.61%
- Q3
- 29.97%
- Median
- 2.84%
- Q1
- -8.35%
- Min
- -56.26%
NET has a negative Return on Equity of -7.55%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
NET
-5.70%
Software - Infrastructure Industry
- Max
- 39.31%
- Q3
- 11.97%
- Median
- 1.67%
- Q1
- -7.10%
- Min
- -34.29%
NET has a negative Return on Invested Capital of -5.70%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
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.
NET
-4.62%
Software - Infrastructure Industry
- Max
- 46.46%
- Q3
- 14.65%
- Median
- 2.66%
- Q1
- -7.70%
- Min
- -35.45%
NET has a negative Net Profit Margin of -4.62%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
NET
-8.66%
Software - Infrastructure Industry
- Max
- 48.51%
- Q3
- 16.56%
- Median
- 4.48%
- Q1
- -6.43%
- Min
- -40.18%
NET has a negative Operating Profit Margin of -8.66%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | ANET | NET |
|---|---|---|
| Return on Equity (TTM) | 32.05% | -7.55% |
| Return on Assets (TTM) | 20.86% | -2.20% |
| Return on Invested Capital (TTM) | 23.89% | -5.70% |
| Net Profit Margin (TTM) | 40.72% | -4.62% |
| Operating Profit Margin (TTM) | 42.27% | -8.66% |
| Gross Profit Margin (TTM) | 64.09% | 76.88% |
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.
NET
3.20
Software - Infrastructure Industry
- Max
- 3.80
- Q3
- 2.25
- Median
- 1.51
- Q1
- 1.10
- Min
- 0.23
NET’s Current Ratio of 3.20 is in the upper quartile for the Software - Infrastructure industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
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.
NET
1.04
Software - Infrastructure Industry
- Max
- 2.56
- Q3
- 1.12
- Median
- 0.33
- Q1
- 0.05
- Min
- 0.00
NET’s Debt-to-Equity Ratio of 1.04 is typical for the Software - Infrastructure 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
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.
NET
-27.68
Software - Infrastructure Industry
- Max
- 32.21
- Q3
- 5.24
- Median
- 0.95
- Q1
- -17.99
- Min
- -50.82
NET has a negative Interest Coverage Ratio of -27.68. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | ANET | NET |
|---|---|---|
| Current Ratio (TTM) | 3.93 | 3.20 |
| Quick Ratio (TTM) | 3.31 | 3.20 |
| Debt-to-Equity Ratio (TTM) | -- | 1.04 |
| Debt-to-Asset Ratio (TTM) | -- | 0.40 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.58 | 14.36 |
| Interest Coverage Ratio (TTM) | -- | -27.68 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ANET and NET. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
NET
0.00%
Software - Infrastructure Industry
- Max
- 4.07%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NET 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.
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.
NET
0.00%
Software - Infrastructure Industry
- Max
- 48.68%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
NET 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.
Dividend at a Glance
| Symbol | ANET | NET |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
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.
NET
-809.27
Software - Infrastructure Industry
- Max
- 107.77
- Q3
- 54.40
- Median
- 28.10
- Q1
- 18.03
- Min
- 5.32
NET has a negative P/E Ratio of -809.27. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
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.
NET
-27.37
Software - Infrastructure Industry
- Max
- 8.12
- Q3
- 3.94
- Median
- 2.13
- Q1
- 0.94
- Min
- 0.01
NET has a negative Forward PEG Ratio of -27.37. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
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.
NET
37.48
Software - Infrastructure Industry
- Max
- 18.25
- Q3
- 9.05
- Median
- 4.77
- Q1
- 2.30
- Min
- 0.11
With a P/S Ratio of 37.48, NET trades at a valuation that eclipses even the highest in the Software - Infrastructure industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
NET
46.38
Software - Infrastructure Industry
- Max
- 19.94
- Q3
- 10.91
- Median
- 6.33
- Q1
- 2.95
- Min
- 0.51
The P/B Ratio is often not a primary valuation metric for the Software - Infrastructure industry.
Valuation at a Glance
| Symbol | ANET | NET |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 42.66 | -809.27 |
| Forward PEG Ratio (TTM) | 1.80 | -27.37 |
| Price-to-Sales Ratio (P/S, TTM) | 17.31 | 37.48 |
| Price-to-Book Ratio (P/B, TTM) | 12.77 | 46.38 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 34.02 | 360.20 |
| EV-to-EBITDA (TTM) | 39.62 | 763.72 |
| EV-to-Sales (TTM) | 17.07 | 38.20 |