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

Institutional & Insider Ownership

59.4% of Arista Networks shares are held by institutional investors. Comparatively, 64.1% of shares of all “Communications & Networking” companies are held by institutional investors. 28.1% of Arista Networks shares are held by company insiders. Comparatively, 13.4% of shares of all “Communications & Networking” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Arista Networks and its competitors’ 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 -2.15% -5.77% 0.40%

Earnings & Valuation

This table compares Arista Networks and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Arista Networks $1.36 billion $350.69 million 49.83
Arista Networks Competitors $2.88 billion $624.22 million 27.03

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Arista Networks and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arista Networks 0 14 17 0 2.55
Arista Networks Competitors 369 2414 3942 158 2.57

Arista Networks currently has a consensus target price of $173.00, indicating a potential downside of 9.82%. As a group, “Communications & Networking” companies have a potential upside of 26.27%. Given Arista Networks’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Arista Networks has less favorable growth aspects than its competitors.

Risk and Volatility

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

Summary

Arista Networks competitors beat Arista Networks on 7 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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