Arista Networks (ANET)vsMcKesson Corporation (MCK)
ANET
Arista Networks
$172.62
-0.05%
TECHNOLOGY · Cap: $217.46B
MCK
McKesson Corporation
$807.85
-0.76%
HEALTHCARE · Cap: $99.71B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 4319% more annual revenue ($397.96B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 0.99. ANET earns a higher WallStSmart Score of 68/100 (B-).
ANET
Strong Buy68
out of 100
Grade: B-
MCK
Buy62
out of 100
Grade: C+
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
+63.8%
Fair Value
$2632.66
Current Price
$807.85
$1824.81 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
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Growing faster than its price suggests
Earnings expanding 38.0% YoY
Generating 1.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 17.5x book value
Weak financial health signals
Premium valuation, high expectations priced in
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
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 : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap. Revenue growth of 11.4% demonstrates continued momentum. PEG of 0.99 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 : MCK
The primary concerns for MCK are Return on Equity, Profit Margin, Operating Margin. Thin 1.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
ANET profiles as a growth stock while MCK 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 62/100), backed by strong 39.0% margins and 28.9% revenue growth. MCK offers better value entry with a 63.8% 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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