WallStSmart

Arista Networks (ANET)vsTeradyne Inc (TER)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arista Networks generates 156% more annual revenue ($9.71B vs $3.79B). ANET leads profitability with a 38.3% profit margin vs 22.6%. TER appears more attractively valued with a PEG of 1.71. TER earns a higher WallStSmart Score of 75/100 (B+).

ANET

Strong Buy

72

out of 100

Grade: B

Growth: 9.3Profit: 9.5Value: 5.3Quality: 6.8
Piotroski: 2/9Altman Z: 3.53

TER

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 9.5Value: 3.7Quality: 8.0
Piotroski: 4/9Altman Z: 2.98
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANETUndervalued (+63.9%)

Margin of Safety

+63.9%

Fair Value

$465.25

Current Price

$166.15

$299.10 discount

UndervaluedFair: $465.25Overvalued

Intrinsic value data unavailable for TER.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ANET6 strengths · Avg: 9.8/10
Market CapQuality
$212.91B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
38.3%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
42.7%10/10

Strong operational efficiency at 42.7%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

Altman Z-ScoreHealth
3.5310/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
27.6%9/10

Every $100 of equity generates 28 in profit

TER6 strengths · Avg: 9.7/10
Operating MarginProfitability
37.6%10/10

Strong operational efficiency at 37.6%

Revenue GrowthGrowth
87.0%10/10

Revenue surging 87.0% year-over-year

EPS GrowthGrowth
314.8%10/10

Earnings expanding 314.8% YoY

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Market CapQuality
$67.69B9/10

Large-cap with strong market position

Return on EquityProfitability
27.2%9/10

Every $100 of equity generates 27 in profit

Areas to Watch

ANET4 concerns · Avg: 3.3/10
PEG RatioValuation
2.184/10

Expensive relative to growth rate

Price/BookValuation
15.5x4/10

Trading at 15.5x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
58.1x2/10

Premium valuation, high expectations priced in

TER3 concerns · Avg: 2.7/10
PEG RatioValuation
1.714/10

Expensive relative to growth rate

P/E RatioValuation
79.9x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.7x2/10

Trading at 22.7x book value

Comparative Analysis Report

WallStSmart Research

Bull 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 : TER

The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 22.6% and operating margin at 37.6%. Revenue growth of 87.0% 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 : TER

The primary concerns for TER are PEG Ratio, P/E Ratio, Price/Book. A P/E of 79.9x leaves little room for execution misses.

Key Dynamics to Monitor

TER carries more volatility with a beta of 1.79 — expect wider price swings.

TER is growing revenue faster at 87.0% — 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

TER scores higher overall (75/100 vs 72/100), backed by strong 22.6% margins and 87.0% 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.

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Teradyne Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.

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