Arista Networks (ANET)vsPayPal Holdings Inc (PYPL)
ANET
Arista Networks
$131.22
-3.70%
TECHNOLOGY · Cap: $165.24B
PYPL
PayPal Holdings Inc
$44.01
-0.41%
FINANCIAL SERVICES · Cap: $41.18B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 268% more annual revenue ($33.17B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 15.8%. PYPL appears more attractively valued with a PEG of 0.70. PYPL earns a higher WallStSmart Score of 78/100 (B+).
ANET
Strong Buy69
out of 100
Grade: B-
PYPL
Strong Buy78
out of 100
Grade: B+
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
+82.6%
Fair Value
$253.19
Current Price
$44.01
$209.18 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
Attractively priced relative to earnings
Every $100 of equity generates 26 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 39.4% YoY
Generating 2.2B 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
3.7% revenue growth
Distress zone — elevated risk
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 : PYPL
The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. Profitability is solid with margins at 15.8% and operating margin at 17.5%. PEG of 0.70 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 47.5x leaves little room for execution misses.
Bear Case : PYPL
The primary concerns for PYPL are Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
ANET profiles as a growth stock while PYPL is a value 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.
PYPL generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
PYPL scores higher overall (78/100 vs 69/100), backed by strong 15.8% margins. Both earn "Strong Buy" and "Strong 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 →PayPal Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.
Visit Website →Compare with Other COMPUTER HARDWARE Stocks
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