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 2026-05-05.
Arista Networks, Inc. · Technology
$172.62
+12.4% upside to fair value
Grade C
High Quality
VS
Microsoft Corporation · Technology
$429.25
-1.3% upside to fair value
Grade B
High Quality
QuantHub Verdict
ANET has more upside to fair value
(+12.4%).
MSFT trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ANET |
MSFT |
| Current Price |
$172.62 |
$429.25 |
| Fair Value Estimate |
$193.98 |
$423.82 |
| Upside to Fair Value |
+12.4%
|
-1.3%
|
| Market Cap |
$217.4B |
$3,187.4B |
| Forward P/E |
61.8x
|
26.8x
|
| EV / EBITDA |
54.8x
|
17.2x
|
| Price / Sales |
24.1x
|
10.4x
|
| Price / FCF |
51.1x
|
41.2x
|
| Revenue Growth YoY |
+28.9%
|
+16.7%
|
| Gross Margin |
64.1%
|
68.6%
|
| Operating Margin |
42.8%
|
46.7%
|
| Return on Equity |
31.0%
|
33.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.96%
|
2.43%
|
| Analyst Consensus |
Strong Buy
|
Strong 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…
Microsoft Corporation is a leading technology company specializing in software infrastructure, cloud computing, and productivity solutions. The company benefits from a high-quality business model characterized by durable competitive moats including strong switching costs and intangible assets such as its brand and cloud infrastructure. Under CEO Satya Nadella's leadership since 2014, Microsoft ha…
Accumulation Zones
| Metric |
ANET |
MSFT |
| Zone Low |
$145.48 |
$317.87 |
| Zone High |
$164.88 |
$360.25 |
| In Buy Zone? |
No
|
No
|