ANET vs CAT: Which Is the Better Buy?
Side-by-side comparison of Arista Networks, Inc. and Caterpillar Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-24.
Arista Networks, Inc. · Technology
$203.47
+15.4% upside to fair value
Med Conviction
Grade C
High Quality
VS
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
ANET has more upside to fair value
(+15.4%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
ANET |
CAT |
| Current Price |
$203.47 |
$808.99 |
| Fair Value Estimate |
$234.80 |
$790.88 |
| Upside to Fair Value |
+15.4%
|
-2.2%
|
| Market Cap |
$256.2B |
$372.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
49.7x
|
23.6x
|
| Price / Sales |
24.3x
|
5.0x
|
| Price / FCF |
49.7x
|
41.4x
|
| Revenue Growth YoY |
+37.7%
|
+24.0%
|
| Gross Margin |
63.0%
|
33.9%
|
| Operating Margin |
43.1%
|
17.5%
|
| Return on Equity |
30.8%
|
54.1%
|
| Dividend Yield |
0% |
0.76% |
| FCF Yield |
2.01%
|
2.41%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Arista Networks designs and sells high-performance Ethernet switching and routing hardware plus its extensible EOS network operating system, and it sits directly in the path of the AI data-center build-out where networking, not compute, is increasingly the bottleneck. The business quality is genuinely high: TTM gross margin of 63.0%, TTM operating margin of 43.1%, TTM net margin of 38.4%, and ROE…
Caterpillar is the world's premier manufacturer of heavy construction and mining equipment, diesel and natural gas power units, and industrial gas turbines, organized across Construction Industries, Resource Industries, Energy & Transportation, and Financial Products, with 118,000 employees and a century-old brand. Business quality is high: return on equity of 54.1%, TTM operating margin of 17.5%…
Accumulation Zones
| Metric |
ANET |
CAT |
| Zone Low |
$176.10 |
$593.16 |
| Zone High |
$199.58 |
$672.25 |
| In Buy Zone? |
No
|
No
|