Analyzing Arista Networks (NYSE:ANET) & Inseego (NASDAQ:INSG)

Inseego (NASDAQ:INSG) and Arista Networks (NYSE:ANET) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Risk & Volatility

Inseego has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Arista Networks has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Insider and Institutional Ownership

34.2% of Inseego shares are owned by institutional investors. Comparatively, 82.5% of Arista Networks shares are owned by institutional investors. 21.7% of Inseego shares are owned by insiders. Comparatively, 2.7% of Arista Networks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Inseego and Arista Networks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inseego	$172.61 million	0.40	$840,000.00	$0.13	31.97
Arista Networks	$9.01 billion	25.64	$3.51 billion	$3.17	57.77

Arista Networks has higher revenue and earnings than Inseego. Inseego is trading at a lower price-to-earnings ratio than Arista Networks, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Inseego and Arista Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inseego	-6.41%	N/A	-8.89%
Arista Networks	38.37%	30.65%	19.44%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Inseego and Arista Networks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inseego	1	2	3	0	2.33
Arista Networks	0	2	20	2	3.00

Inseego currently has a consensus price target of $13.00, suggesting a potential upside of 212.80%. Arista Networks has a consensus price target of $235.45, suggesting a potential upside of 28.58%. Given Inseego’s higher possible upside, equities research analysts plainly believe Inseego is more favorable than Arista Networks.

Summary

Arista Networks beats Inseego on 12 of the 15 factors compared between the two stocks.

About Inseego

Inseego Corp. engages in the design and development of cloud-managed wireless wide area network (WAN) and intelligent edge solutions for businesses, consumers, and governments worldwide. The company provides 5G and 4G mobile broadband solutions, such as mobile hotspots under the MiFi brand; and 4G VoLTE products and 4G USB modems. It also offers fixed wireless access solutions, including indoor, outdoor, and industrial routers and gateways. In addition, the company provides Inseego Connect solution for device management; and 5G SD EDGE solution for secure networking enabling corporate managed mobile remote workforce. Further, it offers SaaS solutions, including telematic and asset tracking solution that provides live maps and data to improve driver safety and performance; Inseego Subscribe, a wireless subscriber management solution for carrier’s management of their government and complex enterprise customer subscriptions. The company was founded in 1996 and is based in San Diego, California.

About Arista Networks

Arista Networks, Inc. engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications. The company offers data center and cloud networking systems, including newer artificial intelligence (AI) ethernet switching platforms; campus wired and wireless products, and routing systems addressing Core Routing, Edge Routing, Data Center Interconnect (DCI), Multi-cloud and Wide Area Networking (WAN) use cases; and a suite of value-add software solutions that leverage EOS to provide end-to-end orchestration, automation, analytics, network monitoring, and security. It also provides post contract customer support services, such as technical support, hardware repair and replacement parts beyond standard warranty, bug fixes, patches, and upgrade services. The company serves a range of industries comprising internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, telecommunication service providers, and others. It markets and sells its products through distributors, system integrators, value-added resellers, and original equipment manufacturer partners, as well as through its direct sales force. The company was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. Arista Networks, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.