Arista Networks (ANET)vsInternational Business Machines (IBM)
ANET
Arista Networks
$166.15
+2.87%
TECHNOLOGY · Cap: $212.91B
IBM
International Business Machines
$284.84
-5.05%
TECHNOLOGY · Cap: $252.56B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 610% more annual revenue ($68.91B vs $9.71B). ANET leads profitability with a 38.3% profit margin vs 15.6%. ANET appears more attractively valued with a PEG of 2.18. ANET earns a higher WallStSmart Score of 72/100 (B).
ANET
Strong Buy72
out of 100
Grade: B
IBM
Buy60
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
Intrinsic value data unavailable for IBM.
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
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Generating 4.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 15.5x book value
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 8.1x book value
Weak financial health signals
Expensive relative to growth rate
Elevated debt levels
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 : IBM
The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.6% and operating margin at 13.8%.
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 : IBM
The primary concerns for IBM are Price/Book, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.14 is elevated, increasing financial risk.
Key Dynamics to Monitor
ANET profiles as a growth stock while IBM is a mature play — different risk/reward profiles.
ANET carries more volatility with a beta of 1.61 — expect wider price swings.
ANET is growing revenue faster at 35.1% — sustainability is the question.
IBM generates stronger free cash flow (4.8B), providing more financial flexibility.
Bottom Line
ANET scores higher overall (72/100 vs 60/100), 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 →International Business Machines
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.
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