Seek Returns logo

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

Updated on

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

Company Profile

SymbolANETNVDA
Company NameArista Networks IncNVIDIA Corporation
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentSemiconductors & Semiconductor Equipment
Market Capitalization165.24 billion USD4,277.59 billion USD
ExchangeNYSENasdaqGS
Listing DateJune 6, 2014January 22, 1999
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolANETNVDA
5-Day Price Return-3.67%-3.64%
13-Week Price Return35.96%29.38%
26-Week Price Return19.79%29.65%
52-Week Price Return49.36%34.92%
Month-to-Date Return6.70%-1.39%
Year-to-Date Return18.95%30.61%
10-Day Avg. Volume8.29M155.77M
3-Month Avg. Volume9.86M197.12M
3-Month Volatility53.44%26.92%
Beta1.482.17

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.

NVDA

106.92%

Semiconductors & Semiconductor Equipment Industry

Max
52.74%
Q3
23.49%
Median
11.60%
Q1
3.23%
Min
-20.69%

NVDA’s Return on Equity of 106.92% is exceptionally high, placing it well beyond the typical range for the Semiconductors & Semiconductor 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. NVDA: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

NVDA

51.69%

Semiconductors & Semiconductor Equipment Industry

Max
44.17%
Q3
22.38%
Median
11.95%
Q1
3.21%
Min
-25.16%

NVDA’s Net Profit Margin of 51.69% is exceptionally high, placing it well beyond the typical range for the Semiconductors & Semiconductor Equipment industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

ANET vs. NVDA: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

NVDA

58.03%

Semiconductors & Semiconductor Equipment Industry

Max
58.03%
Q3
27.84%
Median
12.45%
Q1
5.15%
Min
-28.61%

An Operating Profit Margin of 58.03% places NVDA in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ANET vs. NVDA: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Profitability at a Glance

SymbolANETNVDA
Return on Equity (TTM)32.30%106.92%
Return on Assets (TTM)22.45%73.45%
Net Profit Margin (TTM)40.89%51.69%
Operating Profit Margin (TTM)43.14%58.03%
Gross Profit Margin (TTM)64.24%70.52%

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.

NVDA

3.39

Semiconductors & Semiconductor Equipment Industry

Max
8.42
Q3
4.70
Median
2.75
Q1
2.07
Min
1.04

NVDA’s Current Ratio of 3.39 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

ANET vs. NVDA: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

NVDA

0.10

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.45
Median
0.22
Q1
0.01
Min
0.00

NVDA’s Debt-to-Equity Ratio of 0.10 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ANET vs. NVDA: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

NVDA

75.66

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
81.10
Median
27.22
Q1
7.28
Min
-4.26

NVDA’s Interest Coverage Ratio of 75.66 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

ANET vs. NVDA: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Financial Strength at a Glance

SymbolANETNVDA
Current Ratio (MRQ)3.333.39
Quick Ratio (MRQ)2.582.86
Debt-to-Equity Ratio (MRQ)0.000.10
Interest Coverage Ratio (TTM)171.7875.66

Growth

Revenue Growth

ANET vs. NVDA: 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. NVDA: 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.

NVDA

0.02%

Semiconductors & Semiconductor Equipment Industry

Max
4.16%
Q3
1.78%
Median
0.74%
Q1
0.00%
Min
0.00%

NVDA’s Dividend Yield of 0.02% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.

ANET vs. NVDA: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

NVDA

1.28%

Semiconductors & Semiconductor Equipment Industry

Max
196.12%
Q3
87.72%
Median
26.57%
Q1
0.00%
Min
0.00%

NVDA’s Dividend Payout Ratio of 1.28% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ANET vs. NVDA: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Dividend at a Glance

SymbolANETNVDA
Dividend Yield (TTM)0.00%0.02%
Dividend Payout Ratio (TTM)0.00%1.28%

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.

NVDA

55.11

Semiconductors & Semiconductor Equipment Industry

Max
109.37
Q3
57.11
Median
28.95
Q1
22.13
Min
11.14

NVDA’s P/E Ratio of 55.11 is within the middle range for the Semiconductors & Semiconductor 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. NVDA: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

NVDA

28.49

Semiconductors & Semiconductor Equipment Industry

Max
16.09
Q3
10.10
Median
4.82
Q1
2.60
Min
0.93

With a P/S Ratio of 28.49, NVDA trades at a valuation that eclipses even the highest in the Semiconductors & Semiconductor Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ANET vs. NVDA: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

NVDA

31.64

Semiconductors & Semiconductor Equipment Industry

Max
13.56
Q3
6.75
Median
3.68
Q1
1.89
Min
0.60

At 31.64, NVDA’s P/B Ratio is at an extreme premium to the Semiconductors & Semiconductor 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. NVDA: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Valuation at a Glance

SymbolANETNVDA
Price-to-Earnings Ratio (TTM)51.3355.11
Price-to-Sales Ratio (TTM)20.9928.49
Price-to-Book Ratio (MRQ)11.7931.64
Price-to-Free Cash Flow Ratio (TTM)41.9858.71