WallStSmart

Arista Networks (ANET)vsCME Group Inc (CME)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arista Networks generates 44% more annual revenue ($9.71B vs $6.74B). CME leads profitability with a 63.3% profit margin vs 38.3%. ANET appears more attractively valued with a PEG of 2.40. 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

CME

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 4.3Quality: 5.5
Piotroski: 1/9
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

Intrinsic value data unavailable for CME.

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

CME6 strengths · Avg: 9.0/10
Profit MarginProfitability
63.3%10/10

Keeps 63 of every $100 in revenue as profit

Operating MarginProfitability
69.8%10/10

Strong operational efficiency at 69.8%

Market CapQuality
$101.91B9/10

Large-cap with strong market position

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
21.3%8/10

Earnings expanding 21.3% YoY

Free Cash FlowQuality
$1.24B8/10

Generating 1.2B 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

CME2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
4.862/10

Expensive relative to growth rate

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 : CME

The strongest argument for CME centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 63.3% and operating margin at 69.8%. Revenue growth of 14.4% demonstrates continued momentum.

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 : CME

The primary concerns for CME are Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

ANET profiles as a growth stock while CME is a mature 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.

ANET generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

ANET scores higher overall (71/100 vs 65/100), backed by strong 38.3% margins and 35.1% 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.

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CME Group Inc

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset classes that include agricultural products, currencies, energy, interest rates, metals, stock indexes and cryptocurrencies futures.

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