Arista Networks (ANET)vsPenske Automotive Group Inc (PAG)
ANET
Arista Networks
$141.77
+0.01%
TECHNOLOGY · Cap: $178.49B
PAG
Penske Automotive Group Inc
$173.81
+1.28%
CONSUMER CYCLICAL · Cap: $11.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Penske Automotive Group Inc generates 227% more annual revenue ($31.72B vs $9.71B). ANET leads profitability with a 38.3% profit margin vs 2.9%. PAG appears more attractively valued with a PEG of 2.09. ANET earns a higher WallStSmart Score of 71/100 (B).
ANET
Strong Buy71
out of 100
Grade: B
PAG
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.3%
Fair Value
$480.01
Current Price
$141.77
$338.24 discount
Margin of Safety
-1.7%
Fair Value
$170.26
Current Price
$173.81
$3.55 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 32 in profit
Keeps 38 of every $100 in revenue as profit
Strong operational efficiency at 42.7%
Revenue surging 35.1% year-over-year
Safe zone — low bankruptcy risk
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Trading at 13.2x book value
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.7%
Elevated debt levels
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 38.3% and operating margin at 42.7%. Revenue growth of 35.1% demonstrates continued momentum.
Bull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
Bear Case : ANET
The primary concerns for ANET are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 48.7x leaves little room for execution misses.
Bear Case : PAG
The primary concerns for PAG are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.56 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
ANET profiles as a growth stock while PAG 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 35.1% — sustainability is the question.
ANET generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
ANET scores higher overall (71/100 vs 51/100), backed by strong 38.3% margins and 35.1% 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.
Visit Website →Penske Automotive Group Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.
Visit Website →Compare with Other COMPUTER HARDWARE Stocks
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