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

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Here’s a clear look at ANET and WDC, 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 WDC’s 23.05 billion USD, indicating a significant difference in their market valuations.

With betas of 1.38 for ANET and 1.54 for WDC, both stocks show similar sensitivity to overall market movements.

SymbolANETWDC
Company NameArista Networks, Inc.Western Digital Corporation
CountryUSUS
SectorTechnologyTechnology
IndustryComputer HardwareComputer Hardware
CEOJayshree V. UllalTiang Yew Tan
Price102.52 USD66.08 USD
Market Cap128.76 billion USD23.05 billion USD
Beta1.381.54
ExchangeNYSENASDAQ
IPO DateJune 6, 2014October 31, 1978
ADRNoNo

Historical Performance

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

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.

WDC

16.28%

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, WDC’s Return on Equity of 16.28% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ANET vs. WDC: A comparison of their ROE against the Computer Hardware industry benchmark.

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.

WDC

23.19%

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, WDC’s Return on Invested Capital of 23.19% signifies a highly effective use of its capital to generate profits when compared to its peers.

ANET vs. WDC: A comparison of their ROIC against the Computer Hardware industry benchmark.

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.

WDC

11.34%

Computer Hardware Industry

Max
40.72%
Q3
10.87%
Median
4.33%
Q1
-378.64%
Min
-753.20%

A Net Profit Margin of 11.34% places WDC in the upper quartile for the Computer Hardware industry, signifying strong profitability and more effective cost management than most of its peers.

ANET vs. WDC: A comparison of their Net Profit Margin against the Computer Hardware industry benchmark.

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.

WDC

17.80%

Computer Hardware Industry

Max
42.27%
Q3
13.53%
Median
4.56%
Q1
-295.01%
Min
-592.84%

An Operating Profit Margin of 17.80% places WDC 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.

ANET vs. WDC: A comparison of their Operating Margin against the Computer Hardware industry benchmark.

Profitability at a Glance

SymbolANETWDC
Return on Equity (TTM)32.05%16.28%
Return on Assets (TTM)20.86%10.00%
Return on Invested Capital (TTM)23.89%23.19%
Net Profit Margin (TTM)40.72%11.34%
Operating Profit Margin (TTM)42.27%17.80%
Gross Profit Margin (TTM)64.09%36.93%

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.

WDC

1.56

Computer Hardware Industry

Max
20.73
Q3
11.54
Median
2.69
Q1
1.40
Min
0.73

WDC’s Current Ratio of 1.56 aligns with the median group of the Computer Hardware industry, indicating that its short-term liquidity is in line with its sector peers.

ANET vs. WDC: A comparison of their Current Ratio against the Computer Hardware industry benchmark.

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.

WDC

1.36

Computer Hardware Industry

Max
1.36
Q3
0.67
Median
0.04
Q1
0.03
Min
0.00

WDC’s leverage is in the upper quartile of the Computer Hardware industry, with a Debt-to-Equity Ratio of 1.36. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ANET vs. WDC: A comparison of their D/E Ratio against the Computer Hardware industry benchmark.

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.

WDC

8.65

Computer Hardware Industry

Max
32.50
Q3
21.85
Median
4.98
Q1
-7.71
Min
-34.24

WDC’s Interest Coverage Ratio of 8.65 is positioned comfortably within the norm for the Computer Hardware industry, indicating a standard and healthy capacity to cover its interest payments.

ANET vs. WDC: A comparison of their Interest Coverage against the Computer Hardware industry benchmark.

Financial Strength at a Glance

SymbolANETWDC
Current Ratio (TTM)3.931.56
Quick Ratio (TTM)3.311.31
Debt-to-Equity Ratio (TTM)--1.36
Debt-to-Asset Ratio (TTM)--0.45
Net Debt-to-EBITDA Ratio (TTM)-0.581.32
Interest Coverage Ratio (TTM)--8.65

Growth

The following charts compare key year-over-year (YoY) growth metrics for ANET and WDC. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ANET vs. WDC: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ANET vs. WDC: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ANET vs. WDC: A comparison of their annual year-over-year 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.

WDC

0.15%

Computer Hardware Industry

Max
9.24%
Q3
1.58%
Median
0.00%
Q1
0.00%
Min
0.00%

WDC’s Dividend Yield of 0.15% is consistent with its peers in the Computer Hardware industry, providing a dividend return that is standard for its sector.

ANET vs. WDC: A comparison of their Dividend Yield against the Computer Hardware industry benchmark.

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.

WDC

0.00%

Computer Hardware Industry

Max
193.79%
Q3
30.72%
Median
0.00%
Q1
0.00%
Min
0.00%

WDC 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. WDC: A comparison of their Payout Ratio against the Computer Hardware industry benchmark.

Dividend at a Glance

SymbolANETWDC
Dividend Yield (TTM)0.00%0.15%
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.

WDC

13.97

Computer Hardware Industry

Max
24.60
Q3
24.01
Median
20.31
Q1
18.24
Min
13.38

In the lower quartile for the Computer Hardware industry, WDC’s P/E Ratio of 13.97 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ANET vs. WDC: A comparison of their P/E Ratio against the Computer Hardware industry benchmark.

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.

WDC

25.87

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.

ANET vs. WDC: A comparison of their Forward PEG Ratio against the Computer Hardware industry benchmark.

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.

WDC

1.60

Computer Hardware Industry

Max
57.61
Q3
47.40
Median
3.37
Q1
1.56
Min
0.43

WDC’s P/S Ratio of 1.60 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.

ANET vs. WDC: A comparison of their P/S Ratio against the Computer Hardware industry benchmark.

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.

WDC

4.23

Computer Hardware Industry

Max
21.21
Q3
14.71
Median
9.28
Q1
3.74
Min
0.43

WDC’s P/B Ratio of 4.23 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.

ANET vs. WDC: A comparison of their P/B Ratio against the Computer Hardware industry benchmark.

Valuation at a Glance

SymbolANETWDC
Price-to-Earnings Ratio (P/E, TTM)42.6613.97
Forward PEG Ratio (TTM)1.8025.87
Price-to-Sales Ratio (P/S, TTM)17.311.60
Price-to-Book Ratio (P/B, TTM)12.774.23
Price-to-Free Cash Flow Ratio (P/FCF, TTM)34.0227.00
EV-to-EBITDA (TTM)39.629.21
EV-to-Sales (TTM)17.071.86