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ANET vs KLAC

ANET
Arista Networks, Inc.
NEUTRAL
Price
$136.34
Market Cap
$171.69B
Sector
Technology
AI Confidence
78%
KLAC
KLA Corporation
NEUTRAL
Price
$1472.41
Market Cap
$193.46B
Sector
Technology
AI Confidence
60%

Valuation

P/E Ratio
ANET
52.64
KLAC
42.94
Forward P/E
ANET
40.58
KLAC
30.87
P/B Ratio
ANET
14.42
KLAC
35.33
P/S Ratio
ANET
20.32
KLAC
15.18
EV/EBITDA
ANET
44.01
KLAC
33.77

Profitability

Gross Margin
ANET
64.34%
KLAC
61.57%
Operating Margin
ANET
42.38%
KLAC
41.31%
Profit Margin
ANET
39.73%
KLAC
35.76%
ROE
ANET
31.74%
KLAC
100.73%
ROA
ANET
14.66%
KLAC
21.09%

Growth

Revenue Growth
ANET
27.5%
KLAC
7.2%
Earnings Growth
ANET
15.5%
KLAC
40.9%

Financial Health

Debt/Equity
ANET
--
KLAC
1.12
Current Ratio
ANET
3.25
KLAC
2.83
Quick Ratio
ANET
2.48
KLAC
1.85

Dividends

Dividend Yield
ANET
--
KLAC
0.55%
Payout Ratio
ANET
0.0%
KLAC
21.54%

AI Verdict

ANET NEUTRAL

ANET exhibits strong financial health with a Piotroski F-Score of 8/9, indicating robust operational performance and balance sheet strength. Despite this, the stock trades at a significant premium to both the Graham Number ($23.47) and intrinsic value estimate ($76.41), currently priced at $136.34, reflecting high growth expectations. Solid profitability metrics—such as a 39.73% profit margin and 31.74% ROE—are offset by rich valuation multiples and bearish insider activity, including $26.43M in net selling over the past six months. While earnings have consistently beaten estimates with strong YoY growth (25.0%), the lack of dividend and elevated P/E (52.64) relative to peers suggest limited margin of safety.

Strengths
Exceptional profitability with gross margin of 64.34%, operating margin of 42.38%, and net margin of 39.73%
Strong financial health indicated by Piotroski F-Score of 8/9 and current ratio of 3.25
Consistent earnings outperformance: 24 out of 25 quarters beat estimates, averaging +11.8% surprise over the last 12 quarters
Risks
Extremely rich valuation: P/E of 52.64 and Price/Book of 14.42 significantly above sector averages
Bearish insider sentiment with $26.43M in net insider selling over the last 6 months, including multiple CEO and executive sales
No Altman Z-Score available, limiting ability to assess bankruptcy risk using this model
KLAC NEUTRAL

KLAC shows bullish fundamentals based on deterministic rules. Financial strength is strong (F-Score 7/9). Key strengths include strong valuation and growth metrics. Price trades at a 45.6% premium to fair value estimate ($1011.55), limiting near-term upside from a valuation perspective.

Strengths
Strong profitability (35.8% margin)
Strong financial trend (Piotroski F-Score: 7/9)
Strong ROE of 100.7%
Risks
High valuation with P/E of 42.9
Premium vs Graham Number ($179.32)
Price trades at a 45.6% premium to fair value estimate ($1011.55), limiting near-term upside from a valuation perspective.

Compare Another Pair

ANET vs KLAC: Head-to-Head Comparison

This page compares Arista Networks, Inc. (ANET) and KLA Corporation (KLAC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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