Arista Networks (NYSE: ANET) is one of 67 publicly-traded companies in the “Communications & Networking” industry, but how does it weigh in compared to its rivals? We will compare Arista Networks to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Valuation and Earnings

This table compares Arista Networks and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Arista Networks $1.36 billion $350.69 million 49.44
Arista Networks Competitors $2.41 billion $618.33 million 26.67

Arista Networks’ rivals have higher revenue and earnings than Arista Networks. Arista Networks is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and target prices for Arista Networks and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arista Networks 0 13 18 0 2.58
Arista Networks Competitors 362 2381 3903 152 2.57

Arista Networks presently has a consensus target price of $167.22, indicating a potential downside of 12.15%. As a group, “Communications & Networking” companies have a potential upside of 27.00%. Given Arista Networks’ rivals higher probable upside, analysts clearly believe Arista Networks has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

59.3% of Arista Networks shares are held by institutional investors. Comparatively, 64.0% of shares of all “Communications & Networking” companies are held by institutional investors. 28.1% of Arista Networks shares are held by insiders. Comparatively, 13.4% of shares of all “Communications & Networking” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Arista Networks and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arista Networks 21.74% 22.64% 14.49%
Arista Networks Competitors -1.76% -6.50% 0.48%

Risk and Volatility

Arista Networks has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Arista Networks’ rivals have a beta of 1.17, indicating that their average stock price is 17% more volatile than the S&P 500.

Summary

Arista Networks beats its rivals on 8 of the 13 factors compared.

About Arista Networks

Arista Networks, Inc. is a supplier of cloud networking solutions that use software innovations to address the needs of Internet companies, cloud service providers and data centers for enterprise support. It develops, markets and sells cloud networking solutions, which consist of its Gigabit Ethernet switches and related software. The Company’s cloud networking solutions consist of its Extensible Operating System (EOS), a set of network applications and its Ethernet switching and routing platforms. The programmability of EOS has allowed it to create a set of software applications that address the requirements of cloud networking, including workflow automation, network visibility and analytics, and has also allowed it to integrate with a range of third-party applications for virtualization, management, automation, orchestration and network services. EOS supports cloud and virtualization solutions, including VMware NSX, Microsoft System Center and other cloud management frameworks.

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