WallStSmart

Arista Networks (ANET)vsAlibaba Group Holding Ltd (BABA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 10371% more annual revenue ($1.02T vs $9.71B). ANET leads profitability with a 38.3% profit margin vs 8.9%. BABA appears more attractively valued with a PEG of 0.81. ANET earns a higher WallStSmart Score of 71/100 (B).

ANET

Strong Buy

71

out of 100

Grade: B

Growth: 9.3Profit: 9.5Value: 6.0Quality: 7.3
Piotroski: 2/9Altman Z: 3.53

BABA

Buy

50

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 8.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANETUndervalued (+72.4%)

Margin of Safety

+72.4%

Fair Value

$482.15

Current Price

$141.77

$340.38 discount

UndervaluedFair: $482.15Overvalued
BABAUndervalued (+72.8%)

Margin of Safety

+72.8%

Fair Value

$558.77

Current Price

$140.06

$418.71 discount

UndervaluedFair: $558.77Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ANET6 strengths · Avg: 9.8/10
Return on EquityProfitability
31.5%10/10

Every $100 of equity generates 32 in profit

Profit MarginProfitability
38.3%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
42.7%10/10

Strong operational efficiency at 42.7%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

Altman Z-ScoreHealth
3.5310/10

Safe zone — low bankruptcy risk

Market CapQuality
$178.49B9/10

Large-cap with strong market position

BABA4 strengths · Avg: 8.5/10
Market CapQuality
$349.01B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.818/10

Growing faster than its price suggests

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$6.76B8/10

Generating 6.8B in free cash flow

Areas to Watch

ANET4 concerns · Avg: 3.3/10
PEG RatioValuation
2.404/10

Expensive relative to growth rate

Price/BookValuation
13.2x4/10

Trading at 13.2x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
48.7x2/10

Premium valuation, high expectations priced in

BABA2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

EPS GrowthGrowth
-70.9%2/10

Earnings declined 70.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : ANET

The strongest argument for ANET centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 38.3% and operating margin at 42.7%. Revenue growth of 35.1% demonstrates continued momentum.

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.81 suggests the stock is reasonably priced for its growth.

Bear Case : ANET

The primary concerns for ANET are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 48.7x leaves little room for execution misses.

Bear Case : BABA

The primary concerns for BABA are Revenue Growth, EPS Growth.

Key Dynamics to Monitor

ANET profiles as a growth stock while BABA is a value play — different risk/reward profiles.

ANET carries more volatility with a beta of 1.67 — expect wider price swings.

ANET is growing revenue faster at 35.1% — sustainability is the question.

BABA generates stronger free cash flow (6.8B), providing more financial flexibility.

Bottom Line

ANET scores higher overall (71/100 vs 50/100), backed by strong 38.3% margins and 35.1% revenue growth. BABA offers better value entry with a 72.8% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arista Networks

TECHNOLOGY · COMPUTER HARDWARE · USA

Arista Networks (formerly Arastra) is an American computer networking company headquartered in Santa Clara, California. The company designs and sells multilayer network switches to deliver software-defined networking (SDN) solutions for large datacenter, cloud computing, high-performance computing, and high-frequency trading environments.

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Alibaba Group Holding Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Alibaba Group Holding Limited, also known as Alibaba Group and Alibaba.com, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.

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