Arista Networks (ANET)vsMcKesson Corporation (MCK)
ANET
Arista Networks
$131.22
-3.70%
TECHNOLOGY · Cap: $165.24B
MCK
McKesson Corporation
$885.84
-1.46%
HEALTHCARE · Cap: $109.34B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 4319% more annual revenue ($397.96B vs $9.01B). MCK leads profitability with a 109.0% profit margin vs 39.0%. MCK appears more attractively valued with a PEG of 1.08. ANET earns a higher WallStSmart Score of 69/100 (B-).
ANET
Strong Buy69
out of 100
Grade: B-
MCK
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-28.9%
Fair Value
$103.11
Current Price
$131.22
$28.11 premium
Margin of Safety
+41.2%
Fair Value
$1621.15
Current Price
$885.84
$735.31 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Large-cap with strong market position
Revenue surging 28.9% year-over-year
Keeps 109 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 38.0% YoY
Generating 1.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 13.3x book value
Weak financial health signals
Premium valuation, high expectations priced in
Moderate valuation
ROE of 0.0% — below average capital efficiency
Operating margin of 1.6%
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 39.0% and operating margin at 41.5%. Revenue growth of 28.9% demonstrates continued momentum.
Bull Case : MCK
The strongest argument for MCK centers on Profit Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 109.0% and operating margin at 1.6%. Revenue growth of 11.4% 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 : MCK
The primary concerns for MCK are P/E Ratio, Return on Equity, Operating Margin.
Key Dynamics to Monitor
ANET profiles as a growth stock while MCK is a mature 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.
ANET generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
ANET scores higher overall (69/100 vs 57/100), backed by strong 39.0% margins and 28.9% revenue growth. MCK offers better value entry with a 41.2% 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 →McKesson Corporation
HEALTHCARE · MEDICAL DISTRIBUTION · USA
McKesson Corporation is an American company distributing pharmaceuticals and providing health information technology, medical supplies, and care management tools.
Visit Website →Compare with Other COMPUTER HARDWARE Stocks
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