WallStSmart

Arista Networks (ANET)vsCanaan Inc (CAN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arista Networks generates 1805% more annual revenue ($9.71B vs $509.65M). ANET leads profitability with a 38.3% profit margin vs -41.7%. ANET earns a higher WallStSmart Score of 72/100 (B).

ANET

Strong Buy

72

out of 100

Grade: B

Growth: 9.3Profit: 9.5Value: 5.3Quality: 6.8
Piotroski: 2/9Altman Z: 3.53

CAN

Avoid

30

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 6.7Quality: 7.5
Piotroski: 5/9Altman Z: 1.00
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANETUndervalued (+66.8%)

Margin of Safety

+66.8%

Fair Value

$465.25

Current Price

$166.15

$299.10 discount

UndervaluedFair: $465.25Overvalued
CANUndervalued (+89.9%)

Margin of Safety

+89.9%

Fair Value

$5.52

Current Price

$0.36

$5.16 discount

UndervaluedFair: $5.52Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ANET6 strengths · Avg: 9.8/10
Market CapQuality
$220.77B10/10

Mega-cap, among the largest globally

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

Return on EquityProfitability
27.6%9/10

Every $100 of equity generates 28 in profit

CAN2 strengths · Avg: 9.5/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

Areas to Watch

ANET4 concerns · Avg: 3.3/10
PEG RatioValuation
2.204/10

Expensive relative to growth rate

Price/BookValuation
15.5x4/10

Trading at 15.5x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
60.3x2/10

Premium valuation, high expectations priced in

CAN4 concerns · Avg: 2.3/10
Market CapQuality
$290.00M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-55.7%2/10

ROE of -55.7% — below average capital efficiency

Revenue GrowthGrowth
-24.3%2/10

Revenue declined 24.3%

EPS GrowthGrowth
-91.6%2/10

Earnings declined 91.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : ANET

The strongest argument for ANET centers on Market Cap, 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 : CAN

The strongest argument for CAN centers on Price/Book, Debt/Equity.

Bear Case : ANET

The primary concerns for ANET are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 60.3x leaves little room for execution misses.

Bear Case : CAN

The primary concerns for CAN are Market Cap, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

ANET profiles as a growth stock while CAN is a turnaround play — different risk/reward profiles.

CAN carries more volatility with a beta of 2.54 — expect wider price swings.

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

Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ANET scores higher overall (72/100 vs 30/100), backed by strong 38.3% margins and 35.1% revenue growth. CAN offers better value entry with a 89.9% margin of safety. Both earn "Strong Buy" and "Avoid" 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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Canaan Inc

TECHNOLOGY · COMPUTER HARDWARE · China

Canaan Inc. is engaged in the research, design and sale of IC end system products by integrating bitcoin mining IC products and related components mainly in the People's Republic of China. The company is headquartered in Hangzhou, the People's Republic of China.

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