Seek Returns logo

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

Updated on

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 Capitalization165.24 billion USD370.11 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 Return-3.67%-13.82%
13-Week Price Return35.96%23.49%
26-Week Price Return19.79%32.31%
52-Week Price Return49.36%380.03%
Month-to-Date Return6.70%-1.48%
Year-to-Date Return18.95%106.28%
10-Day Avg. Volume8.29M83.99M
3-Month Avg. Volume9.86M84.29M
3-Month Volatility53.44%51.20%
Beta1.482.64

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.

PLTR

14.64%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

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
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.

PLTR

22.18%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

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
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.

PLTR

16.55%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

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
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.

PLTR

6.32

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

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
1.55
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.

PLTR

0.00

Software Industry

Max
2.14
Q3
0.90
Median
0.29
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
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.

PLTR

-1.53

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

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
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.

PLTR

0.00%

Software Industry

Max
0.08%
Q3
0.03%
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
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.

PLTR

0.00%

Software Industry

Max
1.32%
Q3
0.53%
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

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.

PLTR

485.17

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

At 485.17, 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

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.

PLTR

107.63

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

With a P/S Ratio of 107.63, 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
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.

PLTR

54.26

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
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)51.33485.17
Price-to-Sales Ratio (TTM)20.99107.63
Price-to-Book Ratio (MRQ)11.7954.26
Price-to-Free Cash Flow Ratio (TTM)41.98216.73