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

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

Company Profile

SymbolANETTXN
Company NameArista Networks IncTexas Instruments Incorporated
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryCommunications EquipmentSemiconductors & Semiconductor Equipment
Market Capitalization167.50 billion USD186.80 billion USD
ExchangeNYSENasdaqGS
Listing DateJune 6, 2014June 1, 1972
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolANETTXN
5-Day Price Return0.94%2.37%
13-Week Price Return44.09%12.13%
26-Week Price Return35.57%1.72%
52-Week Price Return54.66%-1.33%
Month-to-Date Return8.16%13.48%
Year-to-Date Return20.57%9.58%
10-Day Avg. Volume6.96M4.98M
3-Month Avg. Volume9.69M6.91M
3-Month Volatility52.68%35.79%
Beta1.481.04

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.

TXN

30.10%

Semiconductors & Semiconductor Equipment Industry

Max
52.74%
Q3
23.49%
Median
11.60%
Q1
3.23%
Min
-20.69%

In the upper quartile for the Semiconductors & Semiconductor Equipment industry, TXN’s Return on Equity of 30.10% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ANET vs. TXN: A comparison of their Return on Equity (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

TXN

30.23%

Semiconductors & Semiconductor Equipment Industry

Max
44.17%
Q3
22.38%
Median
11.95%
Q1
3.21%
Min
-25.16%

A Net Profit Margin of 30.23% places TXN in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

ANET vs. TXN: A comparison of their Net Profit Margin (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

TXN

34.89%

Semiconductors & Semiconductor Equipment Industry

Max
58.03%
Q3
27.84%
Median
12.45%
Q1
5.15%
Min
-28.61%

An Operating Profit Margin of 34.89% places TXN in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ANET vs. TXN: A comparison of their Operating Profit Margin (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Profitability at a Glance

SymbolANETTXN
Return on Equity (TTM)32.30%30.10%
Return on Assets (TTM)22.45%14.45%
Net Profit Margin (TTM)40.89%30.23%
Operating Profit Margin (TTM)43.14%34.89%
Gross Profit Margin (TTM)64.24%58.03%

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.

TXN

5.81

Semiconductors & Semiconductor Equipment Industry

Max
8.42
Q3
4.70
Median
2.75
Q1
2.07
Min
1.04

TXN’s Current Ratio of 5.81 is in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

ANET vs. TXN: A comparison of their Current Ratio (MRQ) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

TXN

0.86

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.45
Median
0.22
Q1
0.01
Min
0.00

TXN’s leverage is in the upper quartile of the Semiconductors & Semiconductor Equipment industry, with a Debt-to-Equity Ratio of 0.86. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ANET vs. TXN: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

TXN

11.73

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
81.10
Median
27.22
Q1
7.28
Min
-4.26

TXN’s Interest Coverage Ratio of 11.73 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

ANET vs. TXN: A comparison of their Interest Coverage Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Financial Strength at a Glance

SymbolANETTXN
Current Ratio (MRQ)3.335.81
Quick Ratio (MRQ)2.582.93
Debt-to-Equity Ratio (MRQ)0.000.86
Interest Coverage Ratio (TTM)171.7811.73

Growth

Revenue Growth

ANET vs. TXN: 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. TXN: 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.

TXN

2.73%

Semiconductors & Semiconductor Equipment Industry

Max
4.16%
Q3
1.78%
Median
0.74%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.73%, TXN offers a more attractive income stream than most of its peers in the Semiconductors & Semiconductor Equipment industry, signaling a strong commitment to shareholder returns.

ANET vs. TXN: A comparison of their Dividend Yield (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

TXN

97.20%

Semiconductors & Semiconductor Equipment Industry

Max
196.12%
Q3
87.72%
Median
26.57%
Q1
0.00%
Min
0.00%

TXN’s Dividend Payout Ratio of 97.20% is in the upper quartile for the Semiconductors & Semiconductor Equipment 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.

ANET vs. TXN: A comparison of their Dividend Payout Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Dividend at a Glance

SymbolANETTXN
Dividend Yield (TTM)0.00%2.73%
Dividend Payout Ratio (TTM)0.00%97.20%

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.

TXN

35.59

Semiconductors & Semiconductor Equipment Industry

Max
109.37
Q3
57.11
Median
28.95
Q1
22.13
Min
11.14

TXN’s P/E Ratio of 35.59 is within the middle range for the Semiconductors & Semiconductor 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.

ANET vs. TXN: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

TXN

10.76

Semiconductors & Semiconductor Equipment Industry

Max
16.09
Q3
10.10
Median
4.82
Q1
2.60
Min
0.93

TXN’s P/S Ratio of 10.76 is in the upper echelon for the Semiconductors & Semiconductor Equipment 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. TXN: A comparison of their Price-to-Sales Ratio (TTM) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment 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.

TXN

11.50

Semiconductors & Semiconductor Equipment Industry

Max
13.56
Q3
6.75
Median
3.68
Q1
1.89
Min
0.60

TXN’s P/B Ratio of 11.50 is in the upper tier for the Semiconductors & Semiconductor Equipment 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. TXN: A comparison of their Price-to-Book Ratio (MRQ) against their respective Communications Equipment and Semiconductors & Semiconductor Equipment industry benchmarks.

Valuation at a Glance

SymbolANETTXN
Price-to-Earnings Ratio (TTM)51.3335.59
Price-to-Sales Ratio (TTM)20.9910.76
Price-to-Book Ratio (MRQ)11.7911.50
Price-to-Free Cash Flow Ratio (TTM)41.98100.96