Arista Networks (ANET)vsStarbucks Corporation (SBUX)
ANET
Arista Networks
$131.22
-3.70%
TECHNOLOGY · Cap: $165.24B
SBUX
Starbucks Corporation
$92.55
-3.42%
CONSUMER CYCLICAL · Cap: $105.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 319% more annual revenue ($37.70B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 3.6%. SBUX appears more attractively valued with a PEG of 1.58. ANET earns a higher WallStSmart Score of 69/100 (B-).
ANET
Strong Buy69
out of 100
Grade: B-
SBUX
Hold39
out of 100
Grade: F
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
-1114.7%
Fair Value
$8.16
Current Price
$92.55
$84.39 premium
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
Large-cap with strong market position
Generating 1.3B 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
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
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 : SBUX
The strongest argument for SBUX centers on Market Cap, Free Cash Flow.
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 : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 77.1x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
ANET profiles as a growth stock while SBUX 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.
SBUX generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
ANET scores higher overall (69/100 vs 39/100), backed by strong 39.0% margins and 28.9% revenue growth. Both earn "Strong Buy" and "Hold" 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 →Starbucks Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.
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