WallStSmart

Arista Networks (ANET)vsPPG Industries Inc (PPG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PPG Industries Inc generates 66% more annual revenue ($16.12B vs $9.71B). ANET leads profitability with a 38.3% profit margin vs 9.8%. PPG appears more attractively valued with a PEG of 1.82. ANET earns a higher WallStSmart Score of 72/100 (B).

ANET

Strong Buy

72

out of 100

Grade: B

Growth: 9.3Profit: 9.5Value: 5.3Quality: 6.8
Piotroski: 2/9Altman Z: 3.53

PPG

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 6.5Value: 5.3Quality: 7.0
Piotroski: 5/9Altman Z: 7.44
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANETUndervalued (+63.9%)

Margin of Safety

+63.9%

Fair Value

$465.25

Current Price

$166.15

$299.10 discount

UndervaluedFair: $465.25Overvalued
PPGFair Value (-2.7%)

Margin of Safety

-2.7%

Fair Value

$127.61

Current Price

$113.80

$13.81 premium

UndervaluedFair: $127.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ANET6 strengths · Avg: 9.8/10
Market CapQuality
$212.91B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
38.3%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
42.7%10/10

Strong operational efficiency at 42.7%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

Altman Z-ScoreHealth
3.5310/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
27.6%9/10

Every $100 of equity generates 28 in profit

PPG2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
7.4410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Areas to Watch

ANET4 concerns · Avg: 3.3/10
PEG RatioValuation
2.184/10

Expensive relative to growth rate

Price/BookValuation
15.5x4/10

Trading at 15.5x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
58.1x2/10

Premium valuation, high expectations priced in

PPG3 concerns · Avg: 3.3/10
PEG RatioValuation
1.824/10

Expensive relative to growth rate

EPS GrowthGrowth
4.2%4/10

4.2% earnings growth

Free Cash FlowQuality
$-163.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : ANET

The strongest argument for ANET centers on Market Cap, 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 : PPG

The strongest argument for PPG centers on Altman Z-Score, P/E Ratio.

Bear Case : ANET

The primary concerns for ANET are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 58.1x leaves little room for execution misses.

Bear Case : PPG

The primary concerns for PPG are PEG Ratio, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

ANET profiles as a growth stock while PPG is a value play — different risk/reward profiles.

ANET carries more volatility with a beta of 1.61 — 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 (72/100 vs 58/100), 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.

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PPG Industries Inc

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe.

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