Is InterDigital a Better Buy Than Arista Networks?
Even as Arista Networks fell -8.6% during the past Day, its peer InterDigital may be a better choice. Consistently evaluating alternatives is core to sound investment approach. InterDigital (IDCC) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Arista Networks (ANET) stock, suggesting you may be better off investing in IDCC
- IDCC’s quarterly revenue growth was 28.0%, vs. ANET’s 27.5%.
- In addition, its Last 12 Months revenue growth came in at 28.8%, ahead of ANET’s 27.8%.
- IDCC leads on profitability over both periods – LTM margin of 62.0% and 3-year average of 48.6%.
A single stock can be risky, but there is a huge value to a broader, diversified approach. Quiz time: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed — the S&P 500, the S&P 1500 Equal Weighted, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.
ANET develops and sells global cloud networking solutions, offering technical support, hardware repair, parts replacement, bug fixes, patches, and upgrade services beyond standard warranties. IDCC designs and develops wireless communication technologies and solutions for cellular and digital products across global markets, supporting 2G to 5G and IEEE 802 standards.
Valuation & Performance Overview
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| ANET | IDCC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 48.8 | 17.3 | IDCC |
| Revenue Growth | |||
| Last Quarter | 27.5% | 28.0% | IDCC |
| Last 12 Months | 27.8% | 28.8% | IDCC |
| Last 3 Year Average | 29.4% | 27.1% | ANET |
| Operating Margins | |||
| Last 12 Months | 42.9% | 62.0% | IDCC |
| Last 3 Year Average | 40.8% | 48.6% | IDCC |
| Momentum | |||
| Last 3 Year Return | 328.5% | 734.5% | ANET |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: ANET Revenue Comparison | IDCC Revenue Comparison
See more margin details: ANET Operating Income Comparison | IDCC Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell IDCC Stock to see if InterDigital’s edge holds up under the hood or if Arista Networks still has cards to play (see Buy or Sell ANET Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| ANET Return | 43% | 98% | -16% | 94% | 88% | 27% | 1140% | <=== | |
| IDCC Return | 14% | 20% | -29% | 124% | 81% | 101% | 645% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% | ||
| Monthly Win Rates [3] | |||||||||
| ANET Win Rate | 67% | 75% | 42% | 67% | 83% | 80% | 69% | <=== | |
| IDCC Win Rate | 58% | 58% | 33% | 50% | 67% | 70% | 56% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | ||
| Max Drawdowns [4] | |||||||||
| ANET Max Drawdown | -23% | -8% | -37% | -10% | -3% | -42% | -20% | ||
| IDCC Max Drawdown | -38% | 0% | -43% | 0% | -11% | -11% | -17% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/5/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read IDCC Dip Buyer Analyses and ANET Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.