WallStSmart

Arista Networks (ANET)vsHP Inc (HPQ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HP Inc generates 491% more annual revenue ($57.42B vs $9.71B). ANET leads profitability with a 38.3% profit margin vs 4.5%. ANET appears more attractively valued with a PEG of 2.20. 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

HPQ

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 7.3Quality: 5.0
Piotroski: 3/9Altman Z: 1.31
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
HPQUndervalued (+42.7%)

Margin of Safety

+42.7%

Fair Value

$34.47

Current Price

$25.58

$8.89 discount

UndervaluedFair: $34.47Overvalued

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

HPQ3 strengths · Avg: 10.0/10
P/E RatioValuation
9.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
73.6%10/10

Every $100 of equity generates 74 in profit

Debt/EquityHealth
-67.1310/10

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

HPQ4 concerns · Avg: 2.5/10
Profit MarginProfitability
4.5%3/10

4.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
21.032/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.312/10

Distress zone — elevated risk

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 : HPQ

The strongest argument for HPQ centers on P/E Ratio, Return on Equity, 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 : HPQ

The primary concerns for HPQ are Profit Margin, Piotroski F-Score, PEG Ratio. Thin 4.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

ANET profiles as a growth stock while HPQ is a value 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 (72/100 vs 56/100), backed by strong 38.3% margins and 35.1% revenue growth. HPQ offers better value entry with a 42.7% margin of safety. 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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HP Inc

TECHNOLOGY · COMPUTER HARDWARE · USA

HP Inc. is an American multinational information technology company headquartered in Palo Alto, California, that develops personal computers (PCs), printers and related supplies, as well as 3D printing solutions.

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