Arista Networks (ANET)vsResMed Inc (RMD)
ANET
Arista Networks
$166.15
+2.87%
TECHNOLOGY · Cap: $212.91B
RMD
ResMed Inc
$196.04
+0.89%
HEALTHCARE · Cap: $28.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Arista Networks generates 75% more annual revenue ($9.71B vs $5.54B). ANET leads profitability with a 38.3% profit margin vs 27.4%. RMD appears more attractively valued with a PEG of 1.15. RMD earns a higher WallStSmart Score of 73/100 (B).
ANET
Strong Buy72
out of 100
Grade: B
RMD
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.9%
Fair Value
$465.25
Current Price
$166.15
$299.10 discount
Margin of Safety
-26.9%
Fair Value
$204.63
Current Price
$196.04
$8.59 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
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
Every $100 of equity generates 28 in profit
Strong operational efficiency at 35.3%
Safe zone — low bankruptcy risk
Every $100 of equity generates 23 in profit
Keeps 27 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 15.5x book value
Weak financial health signals
Premium valuation, high expectations priced in
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull 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 : RMD
The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.4% and operating margin at 35.3%. Revenue growth of 10.8% demonstrates continued momentum.
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 : RMD
No major red flags identified for RMD, but monitor valuation.
Key Dynamics to Monitor
ANET profiles as a growth stock while RMD is a mature 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
RMD scores higher overall (73/100 vs 72/100), backed by strong 27.4% margins and 10.8% revenue growth. ANET offers better value entry with a 63.9% margin of safety. 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 →ResMed Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.
Visit Website →Compare with Other COMPUTER HARDWARE Stocks
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