Better Buy: Arista Networks vs. Cisco
The rivalry between Arista Networks (NYSE: ANET) and Cisco Systems (NASDAQ: CSCO) runs deep, and it's never been friendly. In 2004, Arista was founded by former Cisco engineer Ken Duda , and several other ex-Cisco employees joined the cause shortly thereafter, including Arista's CEO Jayshree Ullal. That set the stage for conflict, and in the years that followed, both companies filed lawsuits against the other, with the result that Arista paid Cisco $400 million in 2018.
Despite this intriguing backstory, both have been underperformers in recent years, with Arista's stock gaining 21% and shares of Cisco up just 10% since 2017. So -- which is the better buy today?
Cisco has a broader portfolio than Arista, with products that range from networking infrastructure platforms (switches and routers), to software-as-a-service (SaaS) solutions for security, collaboration, and analytics. Cisco also operates on a much larger scale, generating $48 billion in revenue over the trailing 12 months -- 20 times more than Arista's $2.2 billion in sales. This breadth and scale gives Cisco an advantage, enabling the company to outspend Arista while providing more holistic solutions. For example, Cisco's security, analytics, Internet of Things, and networking software can be bundled with switches, routers, and wireless hardware, making Cisco a one-stop shop for networking needs.
Source Fool.com
