Genasys (NASDAQ:GNSS) versus Arista Networks (NYSE:ANET) Head-To-Head Comparison

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arista Networks	$9.71 billion	25.87	$3.51 billion	$2.92	68.31
Genasys	$40.76 million	1.95	-$18.11 million	($0.17)	-10.26

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

Risk & Volatility

Arista Networks has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Genasys has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Institutional & Insider Ownership

82.5% of Arista Networks shares are owned by institutional investors. Comparatively, 40.0% of Genasys shares are owned by institutional investors. 2.7% of Arista Networks shares are owned by company insiders. Comparatively, 8.3% of Genasys shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arista Networks	38.32%	30.10%	19.35%
Genasys	-13.44%	-314.53%	-12.76%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Arista Networks and Genasys, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arista Networks	0	1	22	2	3.04
Genasys	1	0	2	0	2.33

Arista Networks currently has a consensus target price of $211.20, indicating a potential upside of 5.88%. Genasys has a consensus target price of $4.50, indicating a potential upside of 157.88%. Given Genasys’ higher probable upside, analysts clearly believe Genasys is more favorable than Arista Networks.

Summary

Arista Networks beats Genasys on 13 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 Genasys

Genasys Inc. engages in the design, development, and commercialization of critical communications hardware and software solutions to alert, inform, and protect people principally in North and South America, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Hardware and Software. It provides Genasys Protect ALERT, an interactive, cloud-based SaaS solution that is designed to enable SLED and enterprise customers to send critical information to at-risk individuals or groups when an emergency occurs using emails, voice calls, text messages, panic buttons, desktop alerts, TV, social media, and other; and Genasys Protect EVAC that enables responding agencies to determine and communicate the proper scope of a response or evacuation by replacing guesswork with data-driven intelligence; and Genasys Protect CONNECT, an instant communication platform that enables first responders and public safety personnel to collaborate and share information in a single space with text, videos, images, and audio from any location. The company also offers Genasys Protect ACOUSTICS, a mass notification speaker system with Genasys protect command-and-control software; and long range acoustic devices, such as acoustic hailing devices which are used to project alert tones and audible voice messages. It sells its products directly to governments, militaries, end-users, and commercial companies. The company was formerly known as LRAD Corporation. Genasys Inc. was incorporated in 1992 and is based in San Diego, California.