Arista Networks (ANET)vsCaterpillar Inc (CAT)
ANET
Arista Networks
$135.01
+3.22%
TECHNOLOGY · Cap: $164.71B
CAT
Caterpillar Inc
$719.04
+0.34%
INDUSTRIALS · Cap: $335.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 651% more annual revenue ($67.59B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 13.1%. ANET appears more attractively valued with a PEG of 1.85. ANET earns a higher WallStSmart Score of 69/100 (B-).
ANET
Strong Buy69
out of 100
Grade: B-
CAT
Buy57
out of 100
Grade: C
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
-463.1%
Fair Value
$127.70
Current Price
$719.04
$591.34 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
Every $100 of equity generates 44 in profit
18.0% revenue growth
Generating 2.2B in free cash flow
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
Premium valuation, high expectations priced in
Trading at 15.7x book value
Weak financial health signals
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 : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 18.0% demonstrates continued momentum.
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 : CAT
The primary concerns for CAT are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Key Dynamics to Monitor
CAT carries more volatility with a beta of 1.53 — expect wider price swings.
ANET is growing revenue faster at 28.9% — sustainability is the question.
CAT generates stronger free cash flow (2.2B), providing more financial flexibility.
Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ANET scores higher overall (69/100 vs 57/100), backed by strong 39.0% margins and 28.9% revenue growth. 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.
Visit Website →Caterpillar Inc
INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA
Caterpillar Inc. (often shortened to CAT) is an American Fortune 100 corporation that designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance to customers via a worldwide dealer network.
Visit Website →Compare with Other COMPUTER HARDWARE Stocks
Want to dig deeper into these stocks?