Arista Networks (ANET)vsShopify Inc (SHOP)
ANET
Arista Networks
$166.15
+2.87%
TECHNOLOGY · Cap: $212.91B
SHOP
Shopify Inc
$109.54
-5.60%
TECHNOLOGY · Cap: $139.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 27% more annual revenue ($12.37B vs $9.71B). ANET leads profitability with a 38.3% profit margin vs 10.8%. SHOP appears more attractively valued with a PEG of 2.10. ANET earns a higher WallStSmart Score of 72/100 (B).
ANET
Strong Buy72
out of 100
Grade: B
SHOP
Buy50
out of 100
Grade: C-
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
+18.4%
Fair Value
$143.39
Current Price
$109.54
$33.85 discount
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
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Trading at 15.5x book value
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 11.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
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 : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% 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 : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 105.4x leaves little room for execution misses.
Key Dynamics to Monitor
SHOP carries more volatility with a beta of 2.59 — 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.
Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ANET scores higher overall (72/100 vs 50/100), backed by strong 38.3% margins and 35.1% revenue growth. SHOP offers better value entry with a 18.4% margin of safety. 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 →Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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