Arista Networks (ANET)vsAlibaba Group Holding Ltd (BABA)
ANET
Arista Networks
$135.01
+3.22%
TECHNOLOGY · Cap: $164.71B
BABA
Alibaba Group Holding Ltd
$129.87
+3.50%
CONSUMER CYCLICAL · Cap: $299.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 11190% more annual revenue ($1.02T vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 8.9%. BABA appears more attractively valued with a PEG of 1.56. ANET earns a higher WallStSmart Score of 69/100 (B-).
ANET
Strong Buy69
out of 100
Grade: B-
BABA
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.4%
Fair Value
$102.74
Current Price
$135.01
$32.27 premium
Margin of Safety
-298.4%
Fair Value
$38.22
Current Price
$129.87
$91.65 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 31 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 41.5%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Revenue surging 28.9% year-over-year
Mega-cap, among the largest globally
Generating 36.0B in free cash flow
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Trading at 13.7x book value
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
1.7% revenue growth
Earnings declined 70.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : ANET
The strongest argument for ANET centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 39.0% and operating margin at 41.5%. Revenue growth of 28.9% demonstrates continued momentum.
Bull Case : BABA
The strongest argument for BABA centers on Market Cap, Free Cash Flow, Price/Book.
Bear Case : ANET
The primary concerns for ANET are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 47.6x leaves little room for execution misses.
Bear Case : BABA
The primary concerns for BABA are PEG Ratio, 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 1.46 — expect wider price swings.
ANET is growing revenue faster at 28.9% — sustainability is the question.
BABA generates stronger free cash flow (36.0B), providing more financial flexibility.
Bottom Line
ANET scores higher overall (69/100 vs 49/100), backed by strong 39.0% margins and 28.9% revenue growth. Both earn "Strong Buy" and "Hold" 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.
Visit Website →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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