Extreme Networks vs Arista Networks Which Is Superior?

Extreme Networks and Arista Networks are two prominent players in the networking industry, each offering unique products and services. Extreme Networks focuses on providing end-to-end networking solutions for enterprises, while Arista Networks specializes in cloud networking solutions. Both companies have seen fluctuations in their stock prices due to market trends and industry competition. Investors are closely monitoring the performance of these stocks to make informed decisions about their portfolios.

Extreme Networks or Arista Networks?

When comparing Extreme Networks and Arista 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 Extreme Networks and Arista 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. Extreme Networks has a dividend yield of -%, while Arista Networks has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Extreme Networks reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Arista 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 Extreme Networks P/E ratio at -19.05 and Arista Networks's P/E ratio at 53.05. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Extreme Networks P/B ratio is 72.84 while Arista Networks's P/B ratio is 15.29.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.87 for Extreme Networks and $109.88 for Arista Networks. Over the past year, Extreme Networks's prices ranged from $10.50 to $18.77, with a yearly change of 78.76%. Arista Networks's prices fluctuated between $56.65 and $112.77, with a yearly change of 99.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.