Arista Networks (NYSE: ANET) and Diebold, (NYSE:DBD) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitabiliy.

Volatility & Risk

Arista Networks has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Diebold, has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500.

Dividends

Diebold, pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Arista Networks does not pay a dividend. Diebold, pays out -11.2% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Arista Networks and Diebold,’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Arista Networks $1.22 billion 8.95 $287.00 million $3.08 49.21
Diebold, $3.91 billion 0.51 $245.60 million ($3.58) -7.44

Arista Networks has higher revenue, but lower earnings than Diebold,. Diebold, is trading at a lower price-to-earnings ratio than Arista Networks, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Arista Networks and Diebold,’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arista Networks 18.95% 20.94% 13.69%
Diebold, -6.65% 9.88% 1.62%

Insider and Institutional Ownership

60.7% of Arista Networks shares are owned by institutional investors. Comparatively, 90.7% of Diebold, shares are owned by institutional investors. 32.4% of Arista Networks shares are owned by company insiders. Comparatively, 1.4% of Diebold, shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Arista Networks and Diebold,, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arista Networks 0 15 14 0 2.48
Diebold, 0 2 6 0 2.75

Arista Networks presently has a consensus target price of $135.76, suggesting a potential downside of 10.44%. Diebold, has a consensus target price of $35.40, suggesting a potential upside of 32.83%. Given Diebold,’s stronger consensus rating and higher possible upside, analysts clearly believe Diebold, is more favorable than Arista Networks.

Summary

Arista Networks beats Diebold, on 9 of the 16 factors compared between the two stocks.

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.

About Diebold,

Diebold Nixdorf, Incorporated provides connected commerce services, software and technology. The Company’s geographic segments include North America (NA), Asia Pacific (AP), Europe, Middle East and Africa (EMEA), and Latin America (LA). These segments sell and service financial self-service (FSS), retail solutions and security systems. The Company is engaged in providing connected commerce solutions to financial institutions. These solutions are supported by a field service organization. The Company provides security solutions, which combine a services portfolio and products to help address its customers’ needs. The Company provides services for a portfolio of physical security offerings, in addition to serving as a national locksmith. The Company provides voting machines for official elections and the terminals for the governmental lottery and correspondent bank.

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