Is Arista Networks a Better Buy Than Ciena?
Even as Ciena surged 19% during the past Month, its peer Arista Networks may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Arista Networks (ANET) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Ciena (CIEN) stock, suggesting you may be better off investing in ANET
- ANET’s quarterly revenue growth was 30.4%, vs. CIEN’s 29.4%.
- In addition, its Last 12 Months revenue growth came in at 26.0%, ahead of CIEN’s 13.0%.
- ANET leads on profitability over both periods – LTM margin of 43.1% and 3-year average of 40.2%.
A single stock can be risky, but there is a huge value to a broader, diversified approach. If you seek an upside with less volatility than holding an individual stock, consider the Trefis High Quality Portfolio (HQ). HQ has outperformed its benchmark — a combination of S&P 500, Russell, and S&P midcap index — and achieved returns exceeding 91% since its inception. Risk management is key — consider what the long-term portfolio performance could be if you blended 10% commodities, 10% gold, and 2% crypto with HQ’s performance metrics.
CIEN provides hardware, software, and services for optimized transport, routing, switching, and management of video, data, and voice traffic on communication networks. ANET develops and sells global cloud networking solutions, offering technical support, hardware repair, parts replacement, bug fixes, patches, and upgrade services beyond standard warranties.
Valuation & Performance Overview
| CIEN | ANET | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 102.1 | 56.2 | ANET |
| Revenue Growth | |||
| Last Quarter | 29.4% | 30.4% | ANET |
| Last 12 Months | 13.0% | 26.0% | ANET |
| Last 3 Year Average | 7.4% | 32.1% | ANET |
| Operating Margins | |||
| Last 12 Months | 5.6% | 43.1% | ANET |
| Last 3 Year Average | 6.7% | 40.2% | ANET |
| Momentum | |||
| Last 3 Year Return | 298.0% | 368.6% | CIEN |
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: CIEN Revenue Comparison | ANET Revenue Comparison
See more margin details: CIEN Operating Income Comparison | ANET Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell ANET Stock to see if Arista Networks’s edge holds up under the hood or if Ciena still has cards to play (see Buy or Sell CIEN Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CIEN Return | 24% | 46% | -34% | -12% | 88% | 116% | 345% | ||
| ANET Return | 43% | 98% | -16% | 94% | 88% | 39% | 1140% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 15% | 112% | ||
| Monthly Win Rates [3] | |||||||||
| CIEN Win Rate | 50% | 67% | 33% | 42% | 83% | 80% | 59% | ||
| ANET Win Rate | 67% | 75% | 42% | 67% | 83% | 80% | 69% | <=== | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | ||
| Max Drawdowns [4] | |||||||||
| CIEN Max Drawdown | -19% | -8% | -49% | -21% | -3% | -37% | -23% | ||
| ANET Max Drawdown | -23% | -8% | -37% | -10% | -3% | -42% | -20% | ||
| 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 11/4/2025 (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 ANET Dip Buyer Analyses and CIEN 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.