WallStSmart

Arista Networks (ANET)vsDiamondback Energy Inc (FANG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 59% more annual revenue ($14.29B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 11.6%. ANET appears more attractively valued with a PEG of 2.40. ANET earns a higher WallStSmart Score of 68/100 (B-).

ANET

Strong Buy

68

out of 100

Grade: B-

Growth: 8.7Profit: 9.5Value: 5.3Quality: 7.3
Piotroski: 2/9Altman Z: 3.53

FANG

Hold

43

out of 100

Grade: D

Growth: 5.3Profit: 4.0Value: 5.3Quality: 3.3
Piotroski: 1/9Altman Z: 1.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANETUndervalued (+70.4%)

Margin of Safety

+70.4%

Fair Value

$449.02

Current Price

$172.62

$276.40 discount

UndervaluedFair: $449.02Overvalued
FANGUndervalued (+44.1%)

Margin of Safety

+44.1%

Fair Value

$302.54

Current Price

$206.18

$96.36 discount

UndervaluedFair: $302.54Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ANET6 strengths · Avg: 9.7/10
Market CapQuality
$217.46B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
31.4%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
39.0%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
41.5%10/10

Strong operational efficiency at 41.5%

Altman Z-ScoreHealth
3.5310/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
28.9%8/10

Revenue surging 28.9% year-over-year

FANG3 strengths · Avg: 8.3/10
Market CapQuality
$60.11B9/10

Large-cap with strong market position

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.40B8/10

Generating 1.4B 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
17.5x4/10

Trading at 17.5x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
62.8x2/10

Premium valuation, high expectations priced in

FANG4 concerns · Avg: 3.0/10
P/E RatioValuation
36.2x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
3.7%3/10

ROE of 3.7% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
55.522/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ANET

The strongest argument for ANET centers on Market Cap, Return on Equity, Profit 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 : FANG

The strongest argument for FANG centers on Market Cap, Price/Book, Free Cash Flow.

Bear Case : ANET

The primary concerns for ANET are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 62.8x leaves little room for execution misses.

Bear Case : FANG

The primary concerns for FANG are P/E Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

ANET profiles as a growth stock while FANG is a declining 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 28.9% — sustainability is the question.

FANG generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

ANET scores higher overall (68/100 vs 43/100), backed by strong 39.0% margins and 28.9% revenue growth. FANG offers better value entry with a 44.1% margin of safety. 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.

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Diamondback Energy Inc

ENERGY · OIL & GAS E&P · USA

Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.

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