WallStSmart

Arista Networks (ANET)vsMagnite Inc (MGNI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arista Networks generates 1260% more annual revenue ($9.71B vs $713.95M). ANET leads profitability with a 38.3% profit margin vs 20.3%. MGNI appears more attractively valued with a PEG of 0.09. MGNI earns a higher WallStSmart Score of 77/100 (B+).

ANET

Strong Buy

71

out of 100

Grade: B

Growth: 9.3Profit: 9.5Value: 6.0Quality: 7.3
Piotroski: 2/9Altman Z: 3.53

MGNI

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 7.5Value: 9.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANETUndervalued (+72.4%)

Margin of Safety

+72.4%

Fair Value

$482.15

Current Price

$141.77

$340.38 discount

UndervaluedFair: $482.15Overvalued
MGNIUndervalued (+54.1%)

Margin of Safety

+54.1%

Fair Value

$25.69

Current Price

$14.13

$11.56 discount

UndervaluedFair: $25.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ANET6 strengths · Avg: 9.8/10
Return on EquityProfitability
31.5%10/10

Every $100 of equity generates 32 in profit

Profit MarginProfitability
38.3%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
42.7%10/10

Strong operational efficiency at 42.7%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

Altman Z-ScoreHealth
3.5310/10

Safe zone — low bankruptcy risk

Market CapQuality
$178.49B9/10

Large-cap with strong market position

MGNI6 strengths · Avg: 8.8/10
PEG RatioValuation
0.0910/10

Growing faster than its price suggests

EPS GrowthGrowth
230.0%10/10

Earnings expanding 230.0% YoY

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

P/E RatioValuation
13.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.4%8/10

Strong operational efficiency at 25.4%

Areas to Watch

ANET4 concerns · Avg: 3.3/10
PEG RatioValuation
2.404/10

Expensive relative to growth rate

Price/BookValuation
13.2x4/10

Trading at 13.2x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
48.7x2/10

Premium valuation, high expectations priced in

MGNI1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-130.17M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : ANET

The strongest argument for ANET centers on Return on Equity, 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 : MGNI

The strongest argument for MGNI centers on PEG Ratio, EPS Growth, Profit Margin. Profitability is solid with margins at 20.3% and operating margin at 25.4%. PEG of 0.09 suggests the stock is reasonably priced for its growth.

Bear Case : ANET

The primary concerns for ANET are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 48.7x leaves little room for execution misses.

Bear Case : MGNI

The primary concerns for MGNI are Free Cash Flow.

Key Dynamics to Monitor

ANET profiles as a growth stock while MGNI is a mature play — different risk/reward profiles.

MGNI carries more volatility with a beta of 2.32 — expect wider price swings.

ANET is growing revenue faster at 35.1% — sustainability is the question.

ANET generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

MGNI scores higher overall (77/100 vs 71/100), backed by strong 20.3% margins. ANET offers better value entry with a 72.4% margin of safety. Both earn "Strong Buy" and "Strong 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.

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Magnite Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

Magnite, Inc. operates an independent sales advertising platform in the United States and internationally. The company is headquartered in Los Angeles, California.

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