Better Buy: Arista Networks vs. Cisco Systems
No matter how the coronavirus pandemic settles, the world will remain hungry for telecommunication services. Yet given underwhelming last-quarter results and following the tech market sell-off last week, the stocks of network telecommunication providers Cisco Systems (NASDAQ: CSCO) and Arista Networks (NYSE: ANET) have become cheaper by 13% and 19%, respectively, since Aug. 1.
That could represent an opportunity to invest in the network computing area at a reasonable price, but should you prefer the dominant vendor Cisco or its innovative rival Arista?
With $49.3 billion of revenue over the last 12 months, down 5% year over year, Cisco remains the dominant network and telecom vendor, far ahead of rivals Juniper Networks and Arista. And thanks to its huge scale, it sustained a high operating margin of 27.6%, up from 27.4% the prior year.
Source Fool.com