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

Updated on August 28, 2025

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

Company Profile

ANET is a standard domestic listing, while NTES trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

Symbol	ANET	NTES
Company Name	Arista Networks Inc	NetEase, Inc.
Country	United States	China
GICS Sector	Information Technology	Communication Services
GICS Industry	Communications Equipment	Entertainment
Market Capitalization	167.21 billion USD	88.15 billion USD
Exchange	NYSE	NasdaqGS
Listing Date	June 6, 2014	June 30, 2000
Security Type	Common Stock	ADR

Historical Performance

This chart compares the performance of ANET and NTES 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. NTES: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	ANET	NTES
5-Day Price Return	0.20%	5.67%
13-Week Price Return	43.73%	13.93%
26-Week Price Return	28.02%	30.17%
52-Week Price Return	51.11%	64.86%
Month-to-Date Return	7.97%	4.07%
Year-to-Date Return	20.37%	52.00%
10-Day Avg. Volume	7.27M	1.08M
3-Month Avg. Volume	9.72M	1.00M
3-Month Volatility	52.78%	25.26%
Beta	1.48	0.66

Profitability

Return on Equity (TTM)

ANET

32.30%

Communications Equipment Industry

Max: 32.05%
Q3: 19.58%
Median: 11.77%
Q1: 2.23%
Min: -11.93%

ANET’s Return on Equity of 32.30% is exceptionally high, placing it well beyond the typical range for the Communications Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

NTES

24.25%

Entertainment Industry

Max: 42.50%
Q3: 22.75%
Median: 12.88%
Q1: 7.15%
Min: -6.84%

In the upper quartile for the Entertainment industry, NTES’s Return on Equity of 24.25% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ANET vs. NTES: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Entertainment industry benchmarks.

Net Profit Margin (TTM)

ANET

40.89%

Communications Equipment Industry

Max: 23.65%
Q3: 14.32%
Median: 5.31%
Q1: 1.45%
Min: -12.72%

ANET’s Net Profit Margin of 40.89% is exceptionally high, placing it well beyond the typical range for the Communications Equipment industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

NTES

31.19%

Entertainment Industry

Max: 45.25%
Q3: 23.93%
Median: 14.60%
Q1: 4.89%
Min: -22.94%

A Net Profit Margin of 31.19% places NTES in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

ANET vs. NTES: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Entertainment industry benchmarks.

Operating Profit Margin (TTM)

ANET

43.14%

Communications Equipment Industry

Max: 42.27%
Q3: 18.90%
Median: 6.21%
Q1: 2.97%
Min: -20.72%

ANET’s Operating Profit Margin of 43.14% is exceptionally high, placing it well above the typical range for the Communications Equipment industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

NTES

31.43%

Entertainment Industry

Max: 46.83%
Q3: 28.87%
Median: 15.26%
Q1: 8.95%
Min: -5.53%

An Operating Profit Margin of 31.43% places NTES in the upper quartile for the Entertainment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ANET vs. NTES: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Entertainment industry benchmarks.

Profitability at a Glance

Symbol	ANET	NTES
Return on Equity (TTM)	32.30%	24.25%
Return on Assets (TTM)	22.45%	17.31%
Net Profit Margin (TTM)	40.89%	31.19%
Operating Profit Margin (TTM)	43.14%	31.43%
Gross Profit Margin (TTM)	64.24%	63.17%

Financial Strength

Current Ratio (MRQ)

ANET

3.33

Communications Equipment Industry

Max: 1.72
Q3: 1.72
Median: 1.46
Q1: 1.18
Min: 0.93

ANET’s Current Ratio of 3.33 is exceptionally high, placing it well outside the typical range for the Communications Equipment industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

NTES

3.23

Entertainment Industry

Max: 6.80
Q3: 3.77
Median: 1.87
Q1: 0.86
Min: 0.39

NTES’s Current Ratio of 3.23 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

ANET vs. NTES: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Entertainment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ANET

0.00

Communications Equipment Industry

Max: 1.55
Q3: 0.92
Median: 0.55
Q1: 0.30
Min: 0.00

Falling into the lower quartile for the Communications Equipment industry, ANET’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

NTES

0.08

Entertainment Industry

Max: 1.65
Q3: 0.71
Median: 0.14
Q1: 0.04
Min: 0.00

NTES’s Debt-to-Equity Ratio of 0.08 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ANET vs. NTES: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Entertainment industry benchmarks.

Interest Coverage Ratio (TTM)

ANET

171.78

Communications Equipment Industry

Max: 181.73
Q3: 113.63
Median: 7.59
Q1: 3.82
Min: -5.39

ANET’s Interest Coverage Ratio of 171.78 is in the upper quartile for the Communications Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

NTES

161.13

Entertainment Industry

Max: 62.11
Q3: 31.19
Median: 7.50
Q1: 2.02
Min: -6.33

With an Interest Coverage Ratio of 161.13, NTES demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

ANET vs. NTES: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Entertainment industry benchmarks.

Financial Strength at a Glance

Symbol	ANET	NTES
Current Ratio (MRQ)	3.33	3.23
Quick Ratio (MRQ)	2.58	3.10
Debt-to-Equity Ratio (MRQ)	0.00	0.08
Interest Coverage Ratio (TTM)	171.78	161.13

Growth

Revenue Growth

ANET vs. NTES: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ANET vs. NTES: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ANET

0.00%

Communications Equipment Industry

Max: 3.88%
Q3: 2.75%
Median: 0.93%
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.

NTES

2.18%

Entertainment Industry

Max: 2.54%
Q3: 1.29%
Median: 0.61%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 2.18%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

ANET vs. NTES: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Entertainment industry benchmarks.

Dividend Payout Ratio (TTM)

ANET

0.00%

Communications Equipment Industry

Max: 111.16%
Q3: 55.91%
Median: 28.42%
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.

NTES

36.90%

Entertainment Industry

Max: 82.30%
Q3: 45.76%
Median: 29.16%
Q1: 0.00%
Min: 0.00%

NTES’s Dividend Payout Ratio of 36.90% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ANET vs. NTES: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Entertainment industry benchmarks.

Dividend at a Glance

Symbol	ANET	NTES
Dividend Yield (TTM)	0.00%	2.18%
Dividend Payout Ratio (TTM)	0.00%	36.90%

Valuation

Price-to-Earnings Ratio (TTM)

ANET

51.33

Communications Equipment Industry

Max: 57.30
Q3: 47.92
Median: 27.50
Q1: 17.89
Min: 13.89

A P/E Ratio of 51.33 places ANET in the upper quartile for the Communications Equipment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

NTES

16.94

Entertainment Industry

Max: 53.51
Q3: 45.31
Median: 33.16
Q1: 18.21
Min: 3.89

In the lower quartile for the Entertainment industry, NTES’s P/E Ratio of 16.94 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ANET vs. NTES: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Entertainment industry benchmarks.

Price-to-Sales Ratio (TTM)

ANET

20.99

Communications Equipment Industry

Max: 11.03
Q3: 5.53
Median: 2.20
Q1: 0.99
Min: 0.40

With a P/S Ratio of 20.99, ANET trades at a valuation that eclipses even the highest in the Communications Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

NTES

5.28

Entertainment Industry

Max: 12.81
Q3: 7.20
Median: 4.68
Q1: 3.32
Min: 0.79

NTES’s P/S Ratio of 5.28 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ANET vs. NTES: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Entertainment industry benchmarks.

Price-to-Book Ratio (MRQ)

ANET

11.79

Communications Equipment Industry

Max: 9.66
Q3: 5.60
Median: 3.73
Q1: 2.67
Min: 0.30

At 11.79, ANET’s P/B Ratio is at an extreme premium to the Communications 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.

NTES

4.09

Entertainment Industry

Max: 17.11
Q3: 8.38
Median: 5.24
Q1: 2.18
Min: 0.67

NTES’s P/B Ratio of 4.09 is within the conventional range for the Entertainment 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.

ANET vs. NTES: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Entertainment industry benchmarks.

Valuation at a Glance

Symbol	ANET	NTES
Price-to-Earnings Ratio (TTM)	51.33	16.94
Price-to-Sales Ratio (TTM)	20.99	5.28
Price-to-Book Ratio (MRQ)	11.79	4.09
Price-to-Free Cash Flow Ratio (TTM)	41.98	13.09