Comparison between Arista Networks and Cisco in the networking industry, with Cisco currently a better investment option.

From Nasdaq: 2025-04-15 11:05:00

Arista Networks, Inc. (ANET) and Cisco Systems, Inc. (CSCO) are key players in the networking industry, offering a wide range of data center and campus Ethernet switches and routers. Arista leads in 100-gigabit Ethernet switches, while Cisco dominates the router and switch market. Both companies cater to evolving enterprise demands with cloud networking solutions.

Arista’s multi-domain software approach and unified software stack set it apart in the industry. The company offers cloud networking solutions with high capacity and programmability, enabling integration with third-party applications. However, Arista faces challenges with high operating costs and supply chain bottlenecks for advanced products.

Cisco is expanding its AI capabilities across security and collaboration platforms. The company’s partnership with NVIDIA aims to offer solutions for building AI-ready data center networks. Despite facing stiff competition, Cisco’s edge business remains strong. However, the company has had to offer discounts and deals in response to competitive pressures, affecting profitability.

Zacks estimates show Arista’s 2025 sales and EPS are expected to grow by 18% and 8.8% respectively. Cisco’s 2025 sales are expected to grow by 4.9%, but EPS is predicted to decline by 0.3%. Both companies are working on improving their financials for the year 2025.

Arista’s stock has gained 12.1% in the past year, while Cisco’s stock has gained 19.8%. From a valuation standpoint, Cisco appears more attractive with a lower price/earnings ratio of 14.76 compared to Arista’s 28.5. Cisco holds a Zacks Rank #2 (Buy) while Arista is at Zacks Rank #3 (Hold). Cisco’s better price performance, valuation metrics, and Zacks Rank make it a better investment option at the moment.



Read more at Nasdaq: Arista Networks vs. Cisco: Which Networking Stock is a Better Bet?