Arista Networks (ANET)vsServiceNow Inc (NOW)
ANET
Arista Networks
$172.62
-0.05%
TECHNOLOGY · Cap: $217.46B
NOW
ServiceNow Inc
$91.97
+0.04%
TECHNOLOGY · Cap: $94.85B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 55% more annual revenue ($13.96B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 12.6%. NOW appears more attractively valued with a PEG of 0.88. ANET earns a higher WallStSmart Score of 68/100 (B-).
ANET
Strong Buy68
out of 100
Grade: B-
NOW
Buy59
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
+85.4%
Fair Value
$630.85
Current Price
$91.97
$538.88 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
Large-cap with strong market position
Growing faster than its price suggests
Revenue surging 22.1% year-over-year
Generating 1.5B 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
Trading at 8.1x book value
2.3% earnings growth
Distress zone — elevated risk
Weak financial health signals
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 : NOW
The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.88 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 : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 54.4x leaves little room for execution misses.
Key Dynamics to Monitor
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.
NOW generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ANET scores higher overall (68/100 vs 59/100), backed by strong 39.0% margins and 28.9% revenue growth. NOW offers better value entry with a 85.4% 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 →ServiceNow Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.
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