Arista Networks (ANET)vsSpotify Technology SA (SPOT)
ANET
Arista Networks
$172.62
-0.05%
TECHNOLOGY · Cap: $217.46B
SPOT
Spotify Technology SA
$443.57
+2.16%
COMMUNICATION SERVICES · Cap: $106.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Spotify Technology SA generates 91% more annual revenue ($17.19B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 12.9%. SPOT appears more attractively valued with a PEG of 2.17. ANET earns a higher WallStSmart Score of 68/100 (B-).
ANET
Strong Buy68
out of 100
Grade: B-
SPOT
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+70.4%
Fair Value
$449.02
Current Price
$172.62
$276.40 discount
Margin of Safety
-47.4%
Fair Value
$330.58
Current Price
$443.57
$112.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
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
Revenue surging 28.9% year-over-year
Every $100 of equity generates 32 in profit
Earnings expanding 213.9% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 17.5x book value
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 9.3x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ANET
The strongest argument for ANET centers on Market Cap, Return on Equity, Profit 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 : SPOT
The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap.
Bear Case : ANET
The primary concerns for ANET are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 62.8x leaves little room for execution misses.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.
Key Dynamics to Monitor
ANET profiles as a growth stock while SPOT is a value play — different risk/reward profiles.
SPOT carries more volatility with a beta of 1.70 — expect wider price swings.
ANET is growing revenue faster at 28.9% — sustainability is the question.
ANET generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
ANET scores higher overall (68/100 vs 60/100), backed by strong 39.0% margins and 28.9% revenue growth. 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 →Spotify Technology SA
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.
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