WallStSmart

Arista Networks (ANET)vsLockheed Martin Corporation (LMT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lockheed Martin Corporation generates 733% more annual revenue ($75.05B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 6.7%. LMT appears more attractively valued with a PEG of 1.34. ANET earns a higher WallStSmart Score of 69/100 (B-).

ANET

Strong Buy

69

out of 100

Grade: B-

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

LMT

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 10.0Quality: 4.5
Piotroski: 3/9Altman Z: 2.09
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
LMTUndervalued (+37.6%)

Margin of Safety

+37.6%

Fair Value

$1007.14

Current Price

$627.43

$379.71 discount

UndervaluedFair: $1007.14Overvalued

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

LMT4 strengths · Avg: 9.3/10
Return on EquityProfitability
76.9%10/10

Every $100 of equity generates 77 in profit

EPS GrowthGrowth
161.0%10/10

Earnings expanding 161.0% YoY

Market CapQuality
$145.19B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.76B8/10

Generating 2.8B in free cash flow

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

LMT4 concerns · Avg: 3.0/10
P/E RatioValuation
29.2x4/10

Moderate valuation

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
21.4x2/10

Trading at 21.4x 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 : LMT

The strongest argument for LMT centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.34 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 47.5x leaves little room for execution misses.

Bear Case : LMT

The primary concerns for LMT are P/E Ratio, Profit Margin, Piotroski F-Score. Debt-to-equity of 3.23 is elevated, increasing financial risk.

Key Dynamics to Monitor

ANET profiles as a growth stock while LMT is a value play — different risk/reward profiles.

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

ANET is growing revenue faster at 28.9% — sustainability is the question.

LMT generates stronger free cash flow (2.8B), providing more financial flexibility.

Bottom Line

ANET scores higher overall (69/100 vs 65/100), backed by strong 39.0% margins and 28.9% revenue growth. LMT offers better value entry with a 37.6% 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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Lockheed Martin Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Lockheed Martin Corporation is an American aerospace, defense, information security, and technology company with worldwide interests. It is headquartered in North Bethesda, Maryland, in the Washington, D.C., area.

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