ANET vs COST: Which Is the Better Buy?
Side-by-side comparison of Arista Networks, Inc. and Costco Wholesale Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Arista Networks, Inc. · Technology
$203.47
+15.4% upside to fair value
Med Conviction
Grade C
High Quality
VS
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
COST has more upside to fair value
(+24.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
ANET |
COST |
| Current Price |
$203.47 |
$896.48 |
| Fair Value Estimate |
$234.80 |
$1,117.50 |
| Upside to Fair Value |
+15.4%
|
+24.7%
|
| Market Cap |
$256.2B |
$397.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
49.7x
|
32.7x
|
| Price / Sales |
24.3x
|
1.3x
|
| Price / FCF |
49.7x
|
42.4x
|
| Revenue Growth YoY |
+37.7%
|
+11.1%
|
| Gross Margin |
63.0%
|
17.5%
|
| Operating Margin |
43.1%
|
3.9%
|
| Return on Equity |
30.8%
|
28.0%
|
| Dividend Yield |
0% |
0.62% |
| FCF Yield |
2.01%
|
2.36%
|
| Analyst Consensus |
Strong Buy
|
Strong 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…
Costco Wholesale Corporation operates a global network of membership-based warehouse clubs, selling branded and private-label merchandise across the United States, Canada, Mexico, Japan, the United Kingdom, South Korea, Taiwan, Australia, Spain, France, Iceland, and China, supplemented by pharmacies, optical centers, food courts, hearing aid centers, tire installation, 636 gas stations, and e-com…
Accumulation Zones
| Metric |
ANET |
COST |
| Zone Low |
$176.10 |
$838.12 |
| Zone High |
$199.58 |
$949.88 |
| In Buy Zone? |
No
|
Yes
|