WallStSmart

Arista Networks (ANET)vsLockheed Martin Corporation (LMT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lockheed Martin Corporation generates 734% more annual revenue ($75.11B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 6.4%. LMT appears more attractively valued with a PEG of 1.08. 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

LMT

Buy

55

out of 100

Grade: C-

Growth: 3.3Profit: 6.5Value: 4.7Quality: 4.5
Piotroski: 3/9Altman Z: 2.09
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
LMTSignificantly Overvalued (-37.3%)

Margin of Safety

-37.3%

Fair Value

$458.03

Current Price

$518.15

$60.12 premium

UndervaluedFair: $458.03Overvalued

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

LMT2 strengths · Avg: 9.5/10
Return on EquityProfitability
67.6%10/10

Every $100 of equity generates 68 in profit

Market CapQuality
$119.47B9/10

Large-cap with strong market position

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

LMT4 concerns · Avg: 3.8/10
P/E RatioValuation
25.1x4/10

Moderate valuation

Price/BookValuation
15.9x4/10

Trading at 15.9x book value

Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

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 : LMT

The strongest argument for LMT centers on Return on Equity, Market Cap. PEG of 1.08 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 62.8x leaves little room for execution misses.

Bear Case : LMT

The primary concerns for LMT are P/E Ratio, Price/Book, Revenue Growth. 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 1.67 — expect wider price swings.

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

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

Bottom Line

ANET scores higher overall (68/100 vs 55/100), backed by strong 39.0% margins and 28.9% revenue growth. 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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