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

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

Company Profile

SymbolANETPLTR
Company NameArista Networks IncPalantir Technologies Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentSoftware
Market Capitalization187.90 billion USD425.91 billion USD
ExchangeNYSENasdaqGS
Listing DateJune 6, 2014September 30, 2020
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolANETPLTR
5-Day Price Return2.60%-1.58%
13-Week Price Return47.33%29.05%
26-Week Price Return90.47%112.01%
52-Week Price Return53.29%357.52%
Month-to-Date Return2.60%-1.58%
Year-to-Date Return35.26%137.38%
10-Day Avg. Volume7.02M54.99M
3-Month Avg. Volume9.48M71.68M
3-Month Volatility49.38%43.46%
Beta1.401.50

Profitability

Return on Equity (TTM)

ANET

32.30%

Communications Equipment Industry

Max
32.30%
Q3
20.90%
Median
9.10%
Q1
4.29%
Min
-13.50%

In the upper quartile for the Communications Equipment industry, ANET’s Return on Equity of 32.30% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

PLTR

14.64%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

PLTR’s Return on Equity of 14.64% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

ANET

40.89%

Communications Equipment Industry

Max
23.65%
Q3
12.56%
Median
5.62%
Q1
2.50%
Min
-3.09%

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.

PLTR

22.18%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

A Net Profit Margin of 22.18% places PLTR in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

ANET

43.14%

Communications Equipment Industry

Max
25.23%
Q3
13.72%
Median
6.44%
Q1
3.00%
Min
-10.95%

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.

PLTR

16.55%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

PLTR’s Operating Profit Margin of 16.55% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolANETPLTR
Return on Equity (TTM)32.30%14.64%
Return on Assets (TTM)22.45%11.65%
Net Profit Margin (TTM)40.89%22.18%
Operating Profit Margin (TTM)43.14%16.55%
Gross Profit Margin (TTM)64.24%80.03%

Financial Strength

Current Ratio (MRQ)

ANET

3.33

Communications Equipment Industry

Max
3.33
Q3
2.13
Median
1.55
Q1
1.15
Min
0.91

ANET’s Current Ratio of 3.33 is in the upper quartile for the Communications Equipment industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

PLTR

6.32

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

PLTR’s Current Ratio of 6.32 is exceptionally high, placing it well outside the typical range for the Software 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.

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

Debt-to-Equity Ratio (MRQ)

ANET

0.00

Communications Equipment Industry

Max
1.44
Q3
0.86
Median
0.53
Q1
0.22
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.

PLTR

0.00

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

PLTR’s Debt-to-Equity Ratio of 0.00 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

ANET

171.78

Communications Equipment Industry

Max
55.49
Q3
34.19
Median
7.59
Q1
3.73
Min
-9.94

With an Interest Coverage Ratio of 171.78, ANET demonstrates a superior capacity to service its debt, placing it well above the typical range for the Communications Equipment industry. This stems from either robust earnings or a conservative debt load.

PLTR

-1.53

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

PLTR has a negative Interest Coverage Ratio of -1.53. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

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

Financial Strength at a Glance

SymbolANETPLTR
Current Ratio (MRQ)3.336.32
Quick Ratio (MRQ)2.586.19
Debt-to-Equity Ratio (MRQ)0.000.00
Interest Coverage Ratio (TTM)171.78-1.53

Growth

Revenue Growth

ANET vs. PLTR: 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. PLTR: 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
8.13%
Q3
3.29%
Median
0.94%
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.

PLTR

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

PLTR 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.

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

Dividend Payout Ratio (TTM)

ANET

0.00%

Communications Equipment Industry

Max
111.16%
Q3
70.91%
Median
30.78%
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.

PLTR

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

PLTR 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.

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

Dividend at a Glance

SymbolANETPLTR
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ANET

56.24

Communications Equipment Industry

Max
103.74
Q3
61.65
Median
26.20
Q1
18.12
Min
4.19

ANET’s P/E Ratio of 56.24 is within the middle range for the Communications 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.

PLTR

555.07

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

At 555.07, PLTR’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Software industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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

Price-to-Sales Ratio (TTM)

ANET

23.00

Communications Equipment Industry

Max
6.86
Q3
6.24
Median
2.44
Q1
1.02
Min
0.48

With a P/S Ratio of 23.00, 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.

PLTR

123.14

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

With a P/S Ratio of 123.14, PLTR trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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

Price-to-Book Ratio (MRQ)

ANET

11.79

Communications Equipment Industry

Max
6.28
Q3
5.73
Median
3.32
Q1
2.02
Min
0.42

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.

PLTR

54.26

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

At 54.26, PLTR’s P/B Ratio is at an extreme premium to the Software 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. PLTR: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Software industry benchmarks.

Valuation at a Glance

SymbolANETPLTR
Price-to-Earnings Ratio (TTM)56.24555.07
Price-to-Sales Ratio (TTM)23.00123.14
Price-to-Book Ratio (MRQ)11.7954.26
Price-to-Free Cash Flow Ratio (TTM)46.00247.95