ANET vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Arista Networks, Inc. and Microsoft Corporation — 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
Microsoft Corporation · Technology
$372.20
+32.4% upside to fair value
High Conviction
Grade A
QuantHub Verdict
ANET has more upside to fair value
(+82.8%).
MSFT trades at a lower forward P/E
(22.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ANET |
MSFT |
| Current Price |
$172.86 |
$372.20 |
| Fair Value Estimate |
$316.03 |
$493.00 |
| Upside to Fair Value |
+82.8%
|
+32.4%
|
| Market Cap |
$217.7B |
$2,763.6B |
| Forward P/E |
61.9x
|
22.0x
|
| EV / EBITDA |
54.9x
|
17.5x
|
| Price / Sales |
24.2x
|
9.1x
|
| Price / FCF |
51.2x
|
35.8x
|
| Revenue Growth YoY |
+28.9%
|
+14.9%
|
| Gross Margin |
64.1%
|
68.8%
|
| Operating Margin |
42.8%
|
45.6%
|
| Return on Equity |
31.0%
|
29.6%
|
| Dividend Yield |
0% |
0.94% |
| FCF Yield |
1.95%
|
2.8%
|
| Analyst Consensus |
Strong Buy
|
Strong 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 …
Microsoft is the world's largest software company, operating a three-pillar empire across cloud (Azure), productivity (Office 365/Teams), and personal computing (Windows/Xbox). Azure is the second-largest cloud platform globally with 24% market share and growing at 38-39% in constant currency, while Microsoft Cloud revenue crossed $168.9B in FY2025. The stock has dropped 33% from its highs to $37…
Accumulation Zones
| Metric |
ANET |
MSFT |
| Zone Low |
$237.02 |
$370.00 |
| Zone High |
$268.63 |
$419.00 |
| In Buy Zone? |
Yes
|
Yes
|