WallStSmart

Arista Networks (ANET)vsTesla Inc (TSLA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tesla Inc generates 987% more annual revenue ($97.88B vs $9.01B). ANET leads profitability with a 39.0% profit margin vs 4.0%. ANET appears more attractively valued with a PEG of 2.40. ANET earns a higher WallStSmart Score of 68/100 (B-).

ANET

Strong Buy

68

out of 100

Grade: B-

Growth: 8.7Profit: 9.5Value: 5.3Quality: 7.3
Piotroski: 2/9Altman Z: 3.53

TSLA

Avoid

33

out of 100

Grade: F

Growth: 6.7Profit: 4.0Value: 2.0Quality: 7.5
Piotroski: 3/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANETUndervalued (+70.4%)

Margin of Safety

+70.4%

Fair Value

$449.02

Current Price

$172.62

$276.40 discount

UndervaluedFair: $449.02Overvalued
TSLASignificantly Overvalued (-50.5%)

Margin of Safety

-50.5%

Fair Value

$260.82

Current Price

$392.51

$131.69 premium

UndervaluedFair: $260.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ANET6 strengths · Avg: 9.7/10
Market CapQuality
$217.46B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
31.4%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
39.0%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
41.5%10/10

Strong operational efficiency at 41.5%

Altman Z-ScoreHealth
3.5310/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
28.9%8/10

Revenue surging 28.9% year-over-year

TSLA4 strengths · Avg: 8.8/10
Market CapQuality
$1.47T10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
15.8%8/10

15.8% revenue growth

Free Cash FlowQuality
$1.44B8/10

Generating 1.4B in free cash flow

Areas to Watch

ANET4 concerns · Avg: 3.3/10
PEG RatioValuation
2.404/10

Expensive relative to growth rate

Price/BookValuation
17.5x4/10

Trading at 17.5x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
62.8x2/10

Premium valuation, high expectations priced in

TSLA4 concerns · Avg: 3.3/10
Price/BookValuation
17.9x4/10

Trading at 17.9x book value

Return on EquityProfitability
4.9%3/10

ROE of 4.9% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

Comparative Analysis Report

WallStSmart Research

Bull 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 : TSLA

The strongest argument for TSLA centers on Market Cap, Debt/Equity, Revenue Growth. Revenue growth of 15.8% demonstrates continued momentum.

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 : TSLA

The primary concerns for TSLA are Price/Book, Return on Equity, Profit Margin. A P/E of 358.6x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

TSLA carries more volatility with a beta of 1.92 — expect wider price swings.

ANET is growing revenue faster at 28.9% — sustainability is the question.

TSLA generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ANET scores higher overall (68/100 vs 33/100), backed by strong 39.0% margins and 28.9% revenue growth. Both earn "Strong Buy" and "Avoid" 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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Tesla Inc

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, as well as other related products and services. In 2020, Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market (which includes plug-in hybrids) and 23% of the battery-electric (purely electric) market. Through its subsidiary Tesla Energy, the company develops and is a major installer of solar photovoltaic energy generation systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.

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