Arista Networks, Inc. (ANET) vs HP Inc. (HPQ)

Arista Networks, Inc. and HP Inc. are both Computer Hardware companies. Arista Networks, Inc. is the larger, with a market value of $234.1B against $27.8B — 8.4× the size. HP Inc. trades at the lower P/E: 11.3× against 55.1×. Arista Networks, Inc. grew revenue faster over the last twelve months: 32.6% against 8.14%. Arista Networks, Inc. has the higher net margin (38.4% vs 4.14%) and the higher return on invested capital (195.4% vs 55.8%). Across the 21 metrics below, Arista Networks, Inc. leads on 13 and HP Inc. on 8.

Valuation

Metric ANET HPQ Computer Hardware median
P/E 55.13 11.32 17.86
P/S 21.16 0.47 3.05
P/B 15.07 n/m 1.97
Price to free cash flow 43.30 7.11 25.50
EV/EBITDA 45.20 7.53 14.90
EV/Sales 19.89 0.53 2.22
Earnings yield 1.81% 8.83% (6.03%)
Free cash flow yield 2.31% 14.07% (4.32%)

Profitability

Metric ANET HPQ Computer Hardware median
Gross margin 63.00% 19.87% 37.84%
Operating margin 43.14% 5.45% (0.80%)
Net margin 38.37% 4.14% (14.15%)
Free cash flow margin 48.91% 6.56% (0.50%)
Return on equity 31.48% (493.66%) (2.10%)
Return on assets 20.10% 5.73% (0.42%)
Return on invested capital 195.39% 55.83% 0.00%

Growth

Metric ANET HPQ Computer Hardware median
Revenue growth (TTM) 32.57% 8.14% 27.21%
EPS growth (last fiscal year) 23.32% (5.69%) 33.11%
Revenue growth, 5-year CAGR 31.19% (0.48%) 1.14%
Net income growth, 5-year CAGR 40.80% (2.12%) 0.00%

Health

Metric ANET HPQ Computer Hardware median
Debt to equity 0.00 (85.52) 0.00
Current ratio 2.96 0.79 2.76
Net debt to EBITDA (2.73) 1.25 0.42

Dividend

Metric ANET HPQ Computer Hardware median
Dividend yield — 4.00% 1.15%
Payout ratio — 0.46 0.26

Size

Metric ANET HPQ Computer Hardware median
Market cap 234.06b 27.82b 397.52m

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