ANET vs HD: Which Is the Better Buy?
Side-by-side comparison of Arista Networks, Inc. and The Home Depot, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-22.
Arista Networks, Inc. · Technology
$172.86
+82.8% upside to fair value
Grade C
High Quality
VS
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
ANET has more upside to fair value
(+82.8%).
HD trades at a lower forward P/E
(23.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ANET |
HD |
| Current Price |
$172.86 |
$337.34 |
| Fair Value Estimate |
$316.03 |
$378.00 |
| Upside to Fair Value |
+82.8%
|
+12.1%
|
| Market Cap |
$217.7B |
$336.0B |
| Forward P/E |
61.9x
|
23.0x
|
| EV / EBITDA |
54.9x
|
18.1x
|
| Price / Sales |
24.2x
|
2.3x
|
| Price / FCF |
51.2x
|
29.7x
|
| Revenue Growth YoY |
+28.9%
|
+3.2%
|
| Gross Margin |
64.1%
|
33.3%
|
| Operating Margin |
42.8%
|
12.7%
|
| Return on Equity |
31.0%
|
110.5%
|
| Dividend Yield |
0% |
2.44% |
| FCF Yield |
1.95%
|
3.37%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Arista Networks is a leading provider of high-speed data center networking hardware and software, specializing in Ethernet switches and cloud networking solutions. The company benefits from strong revenue growth driven by AI and hyperscale cloud demand, with 28.9% revenue growth and 19.3% earnings growth in the most recent quarter. High margins, including a 64.1% gross margin and 42.8% operating …
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and a rapidly growing Pro contractor segment bolstered by the SRS Distribution acquisition. The stock has declined 21% from its $427 high to $337, but now trades at 2.28x P/S, near the 5-year median of 2.31x, and 26.5x P/E which is above the 5-year median of 23.5x. EPS declined 4.6% in …
Accumulation Zones
| Metric |
ANET |
HD |
| Zone Low |
$237.02 |
$285.00 |
| Zone High |
$268.63 |
$320.00 |
| In Buy Zone? |
Yes
|
No
|