Arista Networks (ANET)vsShopify Inc (SHOP)
ANET
Arista Networks
$131.22
-3.70%
TECHNOLOGY · Cap: $165.24B
SHOP
Shopify Inc
$116.78
-4.57%
TECHNOLOGY · Cap: $152.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 28% more annual revenue ($11.56B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 10.6%. ANET appears more attractively valued with a PEG of 1.85. ANET earns a higher WallStSmart Score of 69/100 (B-).
ANET
Strong Buy69
out of 100
Grade: B-
SHOP
Hold48
out of 100
Grade: D+
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
-1750.2%
Fair Value
$6.32
Current Price
$116.78
$110.46 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
Revenue surging 30.6% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 20.3%
Areas to Watch
Expensive relative to growth rate
Trading at 13.3x book value
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 11.3x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% demonstrates continued momentum.
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 : SHOP
The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 125.6x leaves little room for execution misses.
Key Dynamics to Monitor
SHOP carries more volatility with a beta of 2.90 — expect wider price swings.
SHOP is growing revenue faster at 30.6% — sustainability is the question.
ANET generates stronger free cash flow (1.2B), providing more financial flexibility.
Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ANET scores higher overall (69/100 vs 48/100), 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 →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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