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 2026-05-20.
Arista Networks, Inc. · Technology
$172.62
+12.4% upside to fair value
Grade C
High Quality
VS
The Home Depot, Inc. · Consumer Cyclical
$302.44
+22.0% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
HD has more upside to fair value
(+22.0%).
HD trades at a lower forward P/E
(20.5x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
ANET |
HD |
| Current Price |
$172.62 |
$302.44 |
| Fair Value Estimate |
$193.98 |
$369.00 |
| Upside to Fair Value |
+12.4%
|
+22.0%
|
| Market Cap |
$217.4B |
$301.2B |
| Forward P/E |
61.8x
|
20.5x
|
| EV / EBITDA |
54.8x
|
16.5x
|
| Price / Sales |
24.1x
|
2.0x
|
| Price / FCF |
51.1x
|
26.6x
|
| Revenue Growth YoY |
+28.9%
|
+4.8%
|
| Gross Margin |
64.1%
|
33.3%
|
| Operating Margin |
42.8%
|
12.7%
|
| Return on Equity |
31.0%
|
110.5%
|
| Dividend Yield |
0% |
2.72% |
| FCF Yield |
1.96%
|
3.75%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Arista Networks is a leading provider of software-driven cloud networking solutions focused on AI, cloud, and data center markets. The company benefits from durable competitive advantages including a highly experienced leadership team led by CEO Jayshree Ullal, who has driven growth from startup to a $100 billion market cap S&P 500 company. Arista's business quality is high, supported by strong r…
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and an expanding Pro contractor segment bolstered by the SRS Distribution acquisition. Q1 FY2026 results released May 19 beat both the top and bottom line, with revenue of $41.77B up 4.8% year over year and adjusted EPS of $3.43 versus the $3.41 consensus. Comp sales grew only 0.6% howe…
Accumulation Zones
| Metric |
ANET |
HD |
| Zone Low |
$145.48 |
$276.75 |
| Zone High |
$164.88 |
$313.65 |
| In Buy Zone? |
No
|
Yes
|