Arista Networks (ANET)vsWaters Corporation (WAT)
ANET
Arista Networks
$166.15
+2.87%
TECHNOLOGY · Cap: $212.91B
WAT
Waters Corporation
$365.36
-2.95%
HEALTHCARE · Cap: $34.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Arista Networks generates 158% more annual revenue ($9.71B vs $3.77B). ANET leads profitability with a 38.3% profit margin vs 11.9%. WAT appears more attractively valued with a PEG of 1.60. ANET earns a higher WallStSmart Score of 72/100 (B).
ANET
Strong Buy72
out of 100
Grade: B
WAT
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
-84.6%
Fair Value
$178.29
Current Price
$365.36
$187.07 premium
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 91.4% year-over-year
Safe zone — low bankruptcy risk
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 8.5x book value
ROE of 2.9% — below average capital efficiency
Operating margin of 2.8%
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 : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.4% 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 : WAT
The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 45.2x leaves little room for execution misses.
Key Dynamics to Monitor
ANET carries more volatility with a beta of 1.61 — expect wider price swings.
WAT is growing revenue faster at 91.4% — 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. 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 →Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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