Arista Networks (ANET)vsPalo Alto Networks Inc (PANW)
ANET
Arista Networks
$197.33
+3.57%
TECHNOLOGY · Cap: $220.19B
PANW
Palo Alto Networks Inc
$366.34
-1.00%
TECHNOLOGY · Cap: $273.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 9% more annual revenue ($10.61B vs $9.71B). ANET leads profitability with a 38.3% profit margin vs 8.0%. ANET appears more attractively valued with a PEG of 2.23. ANET earns a higher WallStSmart Score of 72/100 (B).
ANET
Strong Buy72
out of 100
Grade: B
PANW
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+69.5%
Fair Value
$555.63
Current Price
$197.32
$358.31 discount
Margin of Safety
+32.8%
Fair Value
$467.52
Current Price
$366.34
$101.18 discount
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
Revenue surging 31.1% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 18.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 10.8x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
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 : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 31.1% demonstrates continued momentum.
Bear Case : ANET
The primary concerns for ANET are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 59.9x leaves little room for execution misses.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 294.1x leaves little room for execution misses.
Key Dynamics to Monitor
ANET profiles as a growth stock while PANW is a hypergrowth play — different risk/reward profiles.
ANET carries more volatility with a beta of 1.60 — 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
ANET scores higher overall (72/100 vs 47/100), backed by strong 38.3% margins and 35.1% revenue growth. PANW offers better value entry with a 32.8% margin of safety. Both earn "Strong Buy" and "Hold" 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 →Palo Alto Networks Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Palo Alto Networks, Inc. provides cybersecurity platform solutions globally. The company is headquartered in Santa Clara, California.
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