Arista Networks (ANET)vsLam Research Corp (LRCX)
ANET
Arista Networks
$172.62
-0.05%
TECHNOLOGY · Cap: $217.46B
LRCX
Lam Research Corp
$258.57
+6.66%
TECHNOLOGY · Cap: $320.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Lam Research Corp generates 141% more annual revenue ($21.68B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 30.9%. LRCX appears more attractively valued with a PEG of 1.52. LRCX earns a higher WallStSmart Score of 74/100 (B).
ANET
Strong Buy68
out of 100
Grade: B-
LRCX
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+70.4%
Fair Value
$449.02
Current Price
$172.62
$276.40 discount
Margin of Safety
+24.8%
Fair Value
$343.70
Current Price
$258.57
$85.13 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 41.5%
Safe zone — low bankruptcy risk
Revenue surging 28.9% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 67 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 35.0%
Safe zone — low bankruptcy risk
Revenue surging 23.8% year-over-year
Areas to Watch
Expensive relative to growth rate
Trading at 17.5x book value
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 31.9x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : LRCX
The strongest argument for LRCX centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 30.9% and operating margin at 35.0%. Revenue growth of 23.8% demonstrates continued momentum.
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 : LRCX
The primary concerns for LRCX are PEG Ratio, P/E Ratio, Price/Book. A P/E of 48.5x leaves little room for execution misses.
Key Dynamics to Monitor
LRCX carries more volatility with a beta of 1.79 — 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.
Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LRCX scores higher overall (74/100 vs 68/100), backed by strong 30.9% margins and 23.8% revenue growth. ANET offers better value entry with a 70.4% margin of safety. Both earn "Strong 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.
Visit Website →Lam Research Corp
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Lam Research Corporation is an American corporation that engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. Its products are used primarily in front-end wafer processing, which involves the steps that create the active components of semiconductor devices (transistors, capacitors) and their wiring (interconnects). The company also builds equipment for back-end wafer-level packaging (WLP), and for related manufacturing markets such as for microelectromechanical systems (MEMS). The company is headquartered in Fremont, California, in the Silicon Valley.
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