ANET vs. SOUN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ANET and SOUN, 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 SOUN’s 4.45 billion USD, indicating a significant difference in their market valuations.
SOUN carries a higher beta at 2.87, indicating it’s more sensitive to market moves, while ANET (beta: 1.38) exhibits greater stability.
| Symbol | ANET | SOUN |
|---|---|---|
| Company Name | Arista Networks, Inc. | SoundHound AI, Inc. |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Computer Hardware | Software - Application |
| CEO | Jayshree V. Ullal | Keyvan Mohajer |
| Price | 102.52 USD | 11.09 USD |
| Market Cap | 128.76 billion USD | 4.45 billion USD |
| Beta | 1.38 | 2.87 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 6, 2014 | April 28, 2022 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ANET and SOUN 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.
SOUN
-68.55%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
SOUN has a negative Return on Equity of -68.55%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
SOUN
-34.12%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
SOUN has a negative Return on Invested Capital of -34.12%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
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.
SOUN
-184.34%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
SOUN has a negative Net Profit Margin of -184.34%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
SOUN
-184.97%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
SOUN has a negative Operating Profit Margin of -184.97%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | ANET | SOUN |
|---|---|---|
| Return on Equity (TTM) | 32.05% | -68.55% |
| Return on Assets (TTM) | 20.86% | -32.07% |
| Return on Invested Capital (TTM) | 23.89% | -34.12% |
| Net Profit Margin (TTM) | 40.72% | -184.34% |
| Operating Profit Margin (TTM) | 42.27% | -184.97% |
| Gross Profit Margin (TTM) | 64.09% | 44.69% |
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.
SOUN
4.92
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
SOUN’s Current Ratio of 4.92 is in the upper quartile for the Software - Application industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its 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.
SOUN
0.01
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, SOUN’s Debt-to-Equity Ratio of 0.01 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.
SOUN
-30.16
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
SOUN has a negative Interest Coverage Ratio of -30.16. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | ANET | SOUN |
|---|---|---|
| Current Ratio (TTM) | 3.93 | 4.92 |
| Quick Ratio (TTM) | 3.31 | 4.92 |
| Debt-to-Equity Ratio (TTM) | -- | 0.01 |
| Debt-to-Asset Ratio (TTM) | -- | 0.01 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.58 | 1.36 |
| Interest Coverage Ratio (TTM) | -- | -30.16 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ANET and SOUN. 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.
SOUN
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SOUN 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.
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.
SOUN
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SOUN 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.
Dividend at a Glance
| Symbol | ANET | SOUN |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
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.
SOUN
-23.18
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
SOUN has a negative P/E Ratio of -23.18. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
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.
SOUN
0.23
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
In the lower quartile for the Software - Application industry, SOUN’s Forward PEG Ratio of 0.23 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
SOUN
43.54
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
With a P/S Ratio of 43.54, SOUN trades at a valuation that eclipses even the highest in the Software - Application industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
SOUN
11.00
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 | SOUN |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 42.66 | -23.18 |
| Forward PEG Ratio (TTM) | 1.80 | 0.23 |
| Price-to-Sales Ratio (P/S, TTM) | 17.31 | 43.54 |
| Price-to-Book Ratio (P/B, TTM) | 12.77 | 11.00 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 34.02 | -41.66 |
| EV-to-EBITDA (TTM) | 39.62 | -23.80 |
| EV-to-Sales (TTM) | 17.07 | 41.18 |