Seek Returns logo

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

Updated on

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

Company Profile

SymbolANETTTWO
Company NameArista Networks IncTake-Two Interactive Software, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyCommunication Services
GICS IndustryCommunications EquipmentEntertainment
Market Capitalization197.78 billion USD47.61 billion USD
ExchangeNYSENasdaqGS
Listing DateJune 6, 2014April 15, 1997
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolANETTTWO
5-Day Price Return8.93%0.44%
13-Week Price Return48.06%6.54%
26-Week Price Return120.79%23.52%
52-Week Price Return60.34%69.55%
Month-to-Date Return8.00%-0.11%
Year-to-Date Return42.37%40.19%
10-Day Avg. Volume7.36M1.82M
3-Month Avg. Volume9.31M1.81M
3-Month Volatility51.95%24.38%
Beta1.390.96

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.

TTWO

-98.81%

Entertainment Industry

Max
42.50%
Q3
24.06%
Median
13.69%
Q1
5.35%
Min
-17.95%

TTWO has a negative Return on Equity of -98.81%. 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.

ANET vs. TTWO: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Entertainment 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.

TTWO

-72.92%

Entertainment Industry

Max
45.33%
Q3
24.40%
Median
13.94%
Q1
4.28%
Min
-23.67%

TTWO has a negative Net Profit Margin of -72.92%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

ANET vs. TTWO: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Entertainment 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.

TTWO

-72.16%

Entertainment Industry

Max
41.77%
Q3
28.26%
Median
16.13%
Q1
8.03%
Min
-3.93%

TTWO has a negative Operating Profit Margin of -72.16%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

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

Profitability at a Glance

SymbolANETTTWO
Return on Equity (TTM)32.30%-98.81%
Return on Assets (TTM)22.45%-37.91%
Net Profit Margin (TTM)40.89%-72.92%
Operating Profit Margin (TTM)43.14%-72.16%
Gross Profit Margin (TTM)64.24%56.66%

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.

TTWO

1.16

Entertainment Industry

Max
6.76
Q3
4.02
Median
1.55
Q1
0.86
Min
0.38

TTWO’s Current Ratio of 1.16 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

ANET vs. TTWO: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Entertainment 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.

TTWO

0.88

Entertainment Industry

Max
1.54
Q3
0.77
Median
0.16
Q1
0.02
Min
0.00

TTWO’s leverage is in the upper quartile of the Entertainment industry, with a Debt-to-Equity Ratio of 0.88. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ANET vs. TTWO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Entertainment 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.

TTWO

-44.74

Entertainment Industry

Max
87.17
Q3
35.59
Median
7.06
Q1
1.13
Min
-44.74

TTWO has a negative Interest Coverage Ratio of -44.74. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

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

Financial Strength at a Glance

SymbolANETTTWO
Current Ratio (MRQ)3.331.16
Quick Ratio (MRQ)2.581.01
Debt-to-Equity Ratio (MRQ)0.000.88
Interest Coverage Ratio (TTM)171.78-44.74

Growth

Revenue Growth

ANET vs. TTWO: 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. TTWO: 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.

TTWO

0.00%

Entertainment Industry

Max
2.90%
Q3
1.29%
Median
0.59%
Q1
0.00%
Min
0.00%

TTWO 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. TTWO: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Entertainment 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.

TTWO

0.00%

Entertainment Industry

Max
82.30%
Q3
38.45%
Median
29.74%
Q1
0.00%
Min
0.00%

TTWO 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. TTWO: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Entertainment industry benchmarks.

Dividend at a Glance

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

Valuation

Price-to-Earnings Ratio (TTM)

ANET

56.16

Communications Equipment Industry

Max
103.74
Q3
61.65
Median
26.20
Q1
18.12
Min
4.19

ANET’s P/E Ratio of 56.16 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.

TTWO

--

Entertainment Industry

Max
92.09
Q3
54.51
Median
28.92
Q1
19.75
Min
2.96

P/E Ratio data for TTWO is currently unavailable.

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

Price-to-Sales Ratio (TTM)

ANET

22.97

Communications Equipment Industry

Max
6.86
Q3
6.24
Median
2.44
Q1
1.02
Min
0.48

With a P/S Ratio of 22.97, 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.

TTWO

8.26

Entertainment Industry

Max
12.34
Q3
7.67
Median
5.06
Q1
2.72
Min
0.67

TTWO’s P/S Ratio of 8.26 is in the upper echelon for the Entertainment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

ANET vs. TTWO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Entertainment 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.

TTWO

12.74

Entertainment Industry

Max
22.84
Q3
10.54
Median
6.60
Q1
2.30
Min
0.65

TTWO’s P/B Ratio of 12.74 is in the upper tier for the Entertainment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ANET vs. TTWO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Entertainment industry benchmarks.

Valuation at a Glance

SymbolANETTTWO
Price-to-Earnings Ratio (TTM)56.16--
Price-to-Sales Ratio (TTM)22.978.26
Price-to-Book Ratio (MRQ)11.7912.74
Price-to-Free Cash Flow Ratio (TTM)45.94212.87