ANET vs. PAYC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ANET and PAYC, 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 PAYC’s 13.48 billion USD, indicating a significant difference in their market valuations.
ANET’s beta of 1.38 points to significantly higher volatility compared to PAYC (beta: 0.82), suggesting ANET has greater potential for both gains and losses relative to market movements.
| Symbol | ANET | PAYC |
|---|---|---|
| Company Name | Arista Networks, Inc. | Paycom Software, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Computer Hardware | Software - Application |
| CEO | Jayshree V. Ullal | Chad R. Richison |
| Price | 102.52 USD | 233.07 USD |
| Market Cap | 128.76 billion USD | 13.48 billion USD |
| Beta | 1.38 | 0.82 |
| Exchange | NYSE | NYSE |
| IPO Date | June 6, 2014 | April 15, 2014 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ANET and PAYC 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.
PAYC
25.50%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
In the upper quartile for the Software - Application industry, PAYC’s Return on Equity of 25.50% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
PAYC
18.14%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
In the upper quartile for the Software - Application industry, PAYC’s Return on Invested Capital of 18.14% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
PAYC
20.60%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 20.60% places PAYC in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.
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.
PAYC
27.88%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 27.88% places PAYC in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ANET | PAYC |
|---|---|---|
| Return on Equity (TTM) | 32.05% | 25.50% |
| Return on Assets (TTM) | 20.86% | 8.62% |
| Return on Invested Capital (TTM) | 23.89% | 18.14% |
| Net Profit Margin (TTM) | 40.72% | 20.60% |
| Operating Profit Margin (TTM) | 42.27% | 27.88% |
| Gross Profit Margin (TTM) | 64.09% | 80.38% |
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.
PAYC
1.20
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
PAYC’s Current Ratio of 1.20 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector 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.
PAYC
0.05
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
Falling into the lower quartile for the Software - Application industry, PAYC’s Debt-to-Equity Ratio of 0.05 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
PAYC
156.12
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
With an Interest Coverage Ratio of 156.12, PAYC demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software - Application industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ANET | PAYC |
|---|---|---|
| Current Ratio (TTM) | 3.93 | 1.20 |
| Quick Ratio (TTM) | 3.31 | 1.20 |
| Debt-to-Equity Ratio (TTM) | -- | 0.05 |
| Debt-to-Asset Ratio (TTM) | -- | 0.02 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.58 | -0.63 |
| Interest Coverage Ratio (TTM) | -- | 156.12 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ANET and PAYC. 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.
PAYC
0.64%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.64%, PAYC offers a more attractive income stream than most of its peers in the Software - Application industry, signaling a strong commitment to shareholder returns.
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.
PAYC
21.48%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PAYC’s Dividend Payout Ratio of 21.48% is in the upper quartile for the Software - Application 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.
Dividend at a Glance
| Symbol | ANET | PAYC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.64% |
| Dividend Payout Ratio (TTM) | 0.00% | 21.48% |
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.
PAYC
33.11
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
PAYC’s P/E Ratio of 33.11 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
PAYC
3.20
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
PAYC’s Forward PEG Ratio of 3.20 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
PAYC
7.04
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
PAYC’s P/S Ratio of 7.04 aligns with the market consensus for the Software - Application industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
PAYC
7.60
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
Valuation at a Glance
| Symbol | ANET | PAYC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 42.66 | 33.11 |
| Forward PEG Ratio (TTM) | 1.80 | 3.20 |
| Price-to-Sales Ratio (P/S, TTM) | 17.31 | 7.04 |
| Price-to-Book Ratio (P/B, TTM) | 12.77 | 7.60 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 34.02 | 35.01 |
| EV-to-EBITDA (TTM) | 39.62 | 18.70 |
| EV-to-Sales (TTM) | 17.07 | 6.81 |