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Compare Stocks › ANET vs BRK-B

Arista Networks, Inc. (ANET) vs Berkshire Hathaway Inc. (BRK-B): Which Is the Better Buy in 2026?

As of 2026-11-02, ANET is fairly valued at $169, with a DCF intrinsic value of $189 and a margin of safety of 10%. BRK-B is fairly valued at $542, with an intrinsic value of $590 and a margin of safety of 8%. Of the two, ANET has the wider margin of safety.

ANET
Arista Networks, Inc.
$168.86
VS
BRK-B
Berkshire Hathaway Inc.
$542.49

Rewards

ANET
  • ★Gross margin of 63.0% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Arista Networks, Inc. scores 93/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
  • ★Free cash flow has grown at a 111.7% CAGR over the past 4 years, demonstrating strong earnings power growth.
BRK-B
  • ★Each dollar of retained earnings has created $3.95 of earning power — management is an exceptional capital allocator.
  • ★Net debt/EBITDA of -1.8x means the company holds more cash than debt — a net cash position.

Risks

ANET
  • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
  • ⚠FCF yield of 1.8% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠Trailing P/E of 53.3x is 35% above the historical average of 39.5x — the stock trades at a premium to its own history.
BRK-B
  • ⚠FCF yield of 6.2% suggests reasonable valuation assuming continued moderate growth.
  • ⚠PEG ratio of 10.06 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.

Key Valuation Metrics

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ANET
BRK-B
Valuation
$3.89B
Free Cash Flow
$71.98B
1.83%
FCF Yield
6.20%
53.27
Trailing P/E
13.64
32.33
Forward P/E
24.18
Quality & Moat
N/A
ROIC
11.26%
31.48%
ROE
12.12%
63.00%
Gross Margin
30.33%
1.25
PEG Ratio
10.06
Balance Sheet Safety
N/A
Net Debt / Equity
Net cash
No debt
Interest Coverage
N/A
-2.88
Net Debt / EBITDA
-1.81
0.00%
Dividend Yield
0.00%
ANET: 4BRK-B: 5
ANETBRK-B

Historical Fundamentals

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ANET

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

BRK-B

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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ANET
$15.08
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$8.45B
Δ Market Cap
+$127.40B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
BRK-B
$1.64
created per $1 retained over 3 years
Value Creator
Σ Retained
$252.19B
Δ Market Cap
+$414.76B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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ANET
10.5% Margin of Safety
Price is 10.5% below estimated fair value
Current Price: $168.86
Fair Value: $188.61
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
BRK-B
8.0% Margin of Safety
Price is 8.0% below estimated fair value
Current Price: $542.49
Fair Value: $589.58
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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ANET

What growth rate is the market pricing in at $169?

+22.0%
Market-Implied Owner Earnings Growth
Standard FCF implies +20.6%

The market implies +22.0% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +20.6%, reflecting heavy growth investment expected to generate future returns.

BRK-B

What growth rate is the market pricing in at $542?

+2.6%
Market-Implied Owner Earnings Growth
Standard FCF implies +1.6%

The market implies +2.6% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +1.6%, reflecting heavy growth investment.

Economic Moat Score

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ANET
93/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Reinvestment Efficiency is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
BRK-B
40/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with reinvestment efficiency as the key competitive advantage. Improving revenue predictability would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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ANET
-2.10
Possible Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
BRK-B
-2.41
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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ANET
Insiders 17.2%Institutions 73.4%Retail & Other 9.3%
No. of Institutional Holders3,198
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
BRK-B
Insiders 0.3%Institutions 67.0%Retail & Other 32.7%
No. of Institutional Holders5,930
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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ANET
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
BRK-B
1
Buys (3M)
2
Buys (12M)
Total value (12M): $500,617
O'SULLIVAN MICHAEL J
General Counsel
$250,072
@ $512.44 · 2026-08-12
O'SULLIVAN MICHAEL J
General Counsel
$250,545
@ $467.43 · 2026-05-06
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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ANET
6
Sells (3M)
19
Sells (12M)
Total value (12M): $69.03M
BREITHAUPT CHANTELLE YVETTE
Chief Financial Officer
$263,160
@ $215.00 · 2026-10-06
TEMPLETON MARK B
Director
$1.02M
@ $204.37 · 2026-10-01
TEMPLETON MARK B
Director
$985,788
@ $197.16 · 2026-09-08
BREITHAUPT CHANTELLE YVETTE
Chief Financial Officer
$119,811
@ $195.77 · 2026-09-01
ULLAL JAYSHREE
Chief Executive Officer
$2.65M
@ $191.79 · 2026-08-25
BATTLES KELLY BODNAR
Director
$79,057
@ $187.34 · 2026-08-21
BECHTOLSHEIM ANDREAS V
Beneficial Owner of more than 10% of a Class of Security
$39.14M
@ $163.06 · 2026-06-04
BREITHAUPT CHANTELLE YVETTE
Chief Financial Officer
$384,336
@ $157.00 · 2026-05-26
ULLAL JAYSHREE
Chief Executive Officer
$2.14M
@ $155.04 · 2026-05-26
BATTLES KELLY BODNAR
Director
$61,797
@ $146.44 · 2026-05-21
WASSENAAR YVONNE
Director
$136,846
@ $140.93 · 2026-05-20
WASSENAAR YVONNE
Director
$213,533
@ $153.07 · 2026-04-15
BREITHAUPT CHANTELLE YVETTE
Chief Financial Officer
$1.38M
@ $155.02 · 2026-04-14
ULLAL JAYSHREE
Chief Executive Officer
$16.93M
@ $150.11 · 2026-04-13
WASSENAAR YVONNE
Director
$187,404
@ $134.34 · 2026-03-16
WASSENAAR YVONNE
Director
$240,380
@ $132.44 · 2026-02-25
BATTLES KELLY BODNAR
Director
$54,042
@ $128.06 · 2026-02-23
ULLAL JAYSHREE
Chief Executive Officer
$2.99M
@ $124.55 · 2025-11-25
BATTLES KELLY BODNAR
Director
$49,436
@ $117.15 · 2025-11-21
ULLAL JAYSHREE
Chief Executive Officer
$3.19M
@ $132.77 · 2025-08-25
BATTLES KELLY BODNAR
Director
$99,081
@ $114.68 · 2025-07-25
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
BRK-B
0
Sells (3M)
0
Sells (12M)
No open market insider sales found.
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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ANET
FearGreed
😐Neutral(41/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
BRK-B
FearGreed
😏Greed(74/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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ANET
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (41)
BRK-B
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (74)
View ANET Full AnalysisView BRK-B Full Analysis

Frequently Asked Questions: ANET vs BRK-B

Is Arista Networks, Inc. or Berkshire Hathaway Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, ANET trades at a 10.5% margin of safety (intrinsic value $189 vs. price $169), compared to BRK-B's 8.0% margin of safety (intrinsic $590 vs. $542).

Which stock has a wider economic moat, Arista Networks, Inc. or Berkshire Hathaway Inc.?▼

ANET scores 93/100 (Wide moat), while BRK-B scores 40/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Berkshire Hathaway Inc. in financial distress?▼

BRK-B's Altman Z-Score of 2.5 places it in the Grey zone, signaling elevated bankruptcy risk. ANET scores 16.4 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which company has better free cash flow, Arista Networks, Inc. or Berkshire Hathaway Inc.?▼

Berkshire Hathaway Inc. (BRK-B) generates a 6.2% free cash flow yield, compared to Arista Networks, Inc.'s 1.8%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.