WallStSmart

Arista Networks (ANET)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 624% more annual revenue ($65.18B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 31.7%. LLY appears more attractively valued with a PEG of 0.99. LLY earns a higher WallStSmart Score of 80/100 (A-).

ANET

Strong Buy

69

out of 100

Grade: B-

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

LLY

Exceptional Buy

80

out of 100

Grade: A-

Growth: 10.0Profit: 10.0Value: 9.3Quality: 8.0
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANETSignificantly Overvalued (-28.9%)

Margin of Safety

-28.9%

Fair Value

$103.11

Current Price

$131.22

$28.11 premium

UndervaluedFair: $103.11Overvalued
LLYUndervalued (+15.6%)

Margin of Safety

+15.6%

Fair Value

$1073.59

Current Price

$906.70

$166.89 discount

UndervaluedFair: $1073.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ANET6 strengths · Avg: 9.5/10
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

Market CapQuality
$165.24B9/10

Large-cap with strong market position

Revenue GrowthGrowth
28.9%8/10

Revenue surging 28.9% year-over-year

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$811.51B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
101.2%10/10

Every $100 of equity generates 101 in profit

Profit MarginProfitability
31.7%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
44.9%10/10

Strong operational efficiency at 44.9%

Revenue GrowthGrowth
42.6%10/10

Revenue surging 42.6% year-over-year

EPS GrowthGrowth
51.4%10/10

Earnings expanding 51.4% YoY

Areas to Watch

ANET4 concerns · Avg: 3.3/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

Price/BookValuation
13.3x4/10

Trading at 13.3x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
47.5x2/10

Premium valuation, high expectations priced in

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
39.5x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.603/10

Elevated debt levels

Price/BookValuation
30.6x2/10

Trading at 30.6x book value

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 39.0% and operating margin at 41.5%. Revenue growth of 28.9% demonstrates continued momentum.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.

Bear Case : ANET

The primary concerns for ANET are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 47.5x leaves little room for execution misses.

Bear Case : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.60 is elevated, increasing financial risk.

Key Dynamics to Monitor

ANET carries more volatility with a beta of 1.46 — expect wider price swings.

LLY is growing revenue faster at 42.6% — sustainability is the question.

ANET generates stronger free cash flow (1.2B), providing more financial flexibility.

Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LLY scores higher overall (80/100 vs 69/100), backed by strong 31.7% margins and 42.6% revenue growth. Both earn "Exceptional Buy" and "Strong 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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Eli Lilly and Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.

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