Arista Networks (NYSE:ANET – Get Free Report) and Inseego (NASDAQ:INSG – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Profitability
This table compares Arista Networks and Inseego’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arista Networks | 38.37% | 30.65% | 19.44% |
| Inseego | -6.41% | N/A | -8.89% |
Volatility and Risk
Arista Networks has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Inseego has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.
Institutional and Insider Ownership
82.5% of Arista Networks shares are held by institutional investors. Comparatively, 34.2% of Inseego shares are held by institutional investors. 2.7% of Arista Networks shares are held by insiders. Comparatively, 21.7% of Inseego shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Arista Networks and Inseego”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arista Networks | $9.01 billion | 25.64 | $3.51 billion | $3.17 | 57.77 |
| Inseego | $172.61 million | 0.40 | $840,000.00 | $0.13 | 31.97 |
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.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Arista Networks and Inseego, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arista Networks | 0 | 2 | 20 | 2 | 3.00 |
| Inseego | 1 | 2 | 3 | 0 | 2.33 |
Arista Networks currently has a consensus target price of $235.45, indicating a potential upside of 28.58%. Inseego has a consensus target price of $13.00, indicating a potential upside of 212.80%. Given Inseego’s higher possible upside, analysts clearly 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 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.
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.
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