Arista Networks vs Extreme Networks Which Outperforms?

Arista Networks and Extreme Networks are two well-known players in the networking industry, each offering unique approaches and technologies to meet the increasing demands of the digital world. Arista Networks has gained a reputation for its high-performance cloud networking solutions, while Extreme Networks focuses on end-to-end networking solutions for enterprises. Investors looking to capitalize on the growing networking market may consider evaluating the stocks of these two companies to determine the best investment opportunities.

Arista Networks or Extreme Networks?

When comparing Arista Networks and Extreme Networks, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Arista Networks and Extreme Networks.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Arista Networks has a dividend yield of -%, while Extreme Networks has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Arista Networks reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Extreme Networks reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Arista Networks P/E ratio at 44.18 and Extreme Networks's P/E ratio at -16.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Arista Networks P/B ratio is 12.73 while Extreme Networks's P/B ratio is 62.58.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Arista Networks has seen a 5-year revenue growth of 1.85%, while Extreme Networks's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Arista Networks's ROE at 32.54% and Extreme Networks's ROE at -216.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $372.25 for Arista Networks and $15.56 for Extreme Networks. Over the past year, Arista Networks's prices ranged from $210.69 to $431.97, with a yearly change of 105.03%. Extreme Networks's prices fluctuated between $10.50 and $18.77, with a yearly change of 78.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.