ANET vs HPE

For growth investors, Arista Networks, Inc.

(ANET) is the stronger pick with 28. 6% revenue growth year-over-year, versus 14. 1% for Hewlett Packard Enterprise Company (HPE). Arista Networks, Inc. (ANET) offers the better valuation at 53. 5x trailing P/E (41. 5x forward), making it the more compelling value choice. Analysts rate Arista Networks, Inc. (ANET) a "Buy" — based on 51 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Hewlett Packard Enterprise Company is actually cheaper at 12.

6x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Arista Networks, Inc.

(ANET) delivered a total return of +618. 9%, compared to +100. 9% for Hewlett Packard Enterprise Company (HPE). Over 10 years, the gap is even starker: ANET returned +34. 2% versus HPE's +278. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Hewlett Packard Enterprise Company (HPE) is the lower-risk stock at 1.

62β versus Arista Networks, Inc. 's 2. 15β — meaning ANET is approximately 33% more volatile than HPE relative to the S&P 500.

By revenue growth (latest reported year), Arista Networks, Inc.

(ANET) is pulling ahead at 28. 6% versus 14. 1% for Hewlett Packard Enterprise Company (HPE). On earnings-per-share growth, the picture is similar: Arista Networks, Inc. grew EPS 23. 3% year-over-year, compared to -102. 3% for Hewlett Packard Enterprise Company. Over a 3-year CAGR, ANET leads at 27. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Arista Networks, Inc.

(ANET) is the more profitable company, earning 39. 0% net margin versus 0. 2% for Hewlett Packard Enterprise Company — meaning it keeps 39. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ANET leads at 42. 8% versus 4. 8% for HPE. At the gross margin level — before operating expenses — ANET leads at 64. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Hewlett Packard Enterprise Company (HPE) trades at 12.

6x forward P/E versus 41. 5x for Arista Networks, Inc. — 28. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ANET: 26. 7% to $186. 25.

In this comparison, HPE (2.

0% yield) pays a dividend. ANET does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Hewlett Packard Enterprise Company (HPE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (2.

0% yield, +278. 2% 10Y return). Arista Networks, Inc. (ANET) carries a higher beta of 2. 15 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (HPE: +278. 2%, ANET: +34. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ANET is a mid-cap high-growth stock; HPE is a mid-cap quality compounder stock. HPE pays a dividend while ANET does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.