Arista Networks (ANET)vsLithia Motors Inc (LAD)
ANET
Arista Networks
$141.77
+0.01%
TECHNOLOGY · Cap: $178.49B
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 289% more annual revenue ($37.73B vs $9.71B). ANET leads profitability with a 38.3% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. ANET earns a higher WallStSmart Score of 71/100 (B).
ANET
Strong Buy71
out of 100
Grade: B
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.3%
Fair Value
$480.01
Current Price
$141.77
$338.24 discount
Margin of Safety
+53.9%
Fair Value
$694.31
Current Price
$293.99
$400.32 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 32 in profit
Keeps 38 of every $100 in revenue as profit
Strong operational efficiency at 42.7%
Revenue surging 35.1% year-over-year
Safe zone — low bankruptcy risk
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Trading at 13.2x book value
Weak financial health signals
Premium valuation, high expectations priced in
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
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 38.3% and operating margin at 42.7%. Revenue growth of 35.1% demonstrates continued momentum.
Bull Case : LAD
The strongest argument for LAD centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.64 suggests the stock is reasonably priced for its growth.
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 : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
ANET profiles as a growth stock while LAD 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 (71/100 vs 55/100), backed by strong 38.3% margins and 35.1% revenue growth. LAD offers better value entry with a 53.9% 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.
Visit Website →Lithia Motors Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Lithia Motors, Inc. is an automobile retailer in the United States. The company is headquartered in Medford, Oregon.
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