Arista Networks, Inc. (ANET) vs Western Digital Corporation (WDC)

Arista Networks, Inc. and Western Digital Corporation are both Computer Hardware companies. Arista Networks, Inc. is the larger, with a market value of $234.1B against $133.4B — 1.8× the size. Western Digital Corporation trades at the lower P/E: 12.3× against 55.1×. Western Digital Corporation grew revenue faster over the last twelve months: 35.7% against 32.6%. Western Digital Corporation has the higher net margin (73.0% vs 38.4%) and the lower return on invested capital (33.4% vs 195.4%). Across the 22 metrics below, Western Digital Corporation leads on 14 and Arista Networks, Inc. on 8.

Valuation

Metric ANET WDC Computer Hardware median
P/E 55.13 12.33 17.86
P/S 21.16 8.89 3.05
P/B 15.07 12.96 1.97
Price to free cash flow 43.30 32.73 25.50
EV/EBITDA 45.20 24.19 14.90
EV/Sales 19.89 9.04 2.22
Earnings yield 1.81% 8.11% (6.03%)
Free cash flow yield 2.31% 3.06% (4.32%)

Profitability

Metric ANET WDC Computer Hardware median
Gross margin 63.00% 48.85% 37.84%
Operating margin 43.14% 34.47% (0.80%)
Net margin 38.37% 72.95% (14.15%)
Free cash flow margin 48.91% 27.18% (0.50%)
Return on equity 31.48% 132.97% (2.10%)
Return on assets 20.10% 67.65% (0.42%)
Return on invested capital 195.39% 33.38% 0.00%

Growth

Metric ANET WDC Computer Hardware median
Revenue growth (TTM) 32.57% 35.70% 27.21%
EPS growth (last fiscal year) 23.32% 373.29% 33.11%
Revenue growth, 5-year CAGR 31.19% (5.26%) 1.14%
Net income growth, 5-year CAGR 40.80% 62.92% 0.00%

Health

Metric ANET WDC Computer Hardware median
Debt to equity 0.00 0.12 0.00
Current ratio 2.96 1.33 2.76
Net debt to EBITDA (2.73) (0.11) 0.42

Dividend

Metric ANET WDC Computer Hardware median
Dividend yield — 0.17% 1.15%
Payout ratio — 0.02 0.26

Size

Metric ANET WDC Computer Hardware median
Market cap 234.06b 133.43b 397.52m

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