Comparing ODDITY Tech (NASDAQ:ODD) & Arista Networks (NYSE:ANET)

ODDITY Tech (NASDAQ:ODD) and Arista Networks (NYSE:ANET) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Volatility & Risk

ODDITY Tech has a beta of 2.92, indicating that its share price is 192% more volatile than the S&P 500. Comparatively, Arista Networks has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ODDITY Tech	$809.84 million	1.11	$110.75 million	$1.80	8.64
Arista Networks	$9.01 billion	24.12	$3.51 billion	$2.76	62.50

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

Insider & Institutional Ownership

35.9% of ODDITY Tech shares are owned by institutional investors. Comparatively, 82.5% of Arista Networks shares are owned by institutional investors. 3.5% of Arista Networks shares are owned 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ODDITY Tech and Arista Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ODDITY Tech	3	9	1	0	1.85
Arista Networks	0	2	20	3	3.04

ODDITY Tech presently has a consensus price target of $31.36, suggesting a potential upside of 101.70%. Arista Networks has a consensus price target of $177.83, suggesting a potential upside of 3.09%. Given ODDITY Tech’s higher probable upside, research analysts plainly believe ODDITY Tech is more favorable than Arista Networks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ODDITY Tech	13.68%	29.84%	11.22%
Arista Networks	38.99%	30.37%	20.07%

Summary

Arista Networks beats ODDITY Tech on 13 of the 15 factors compared between the two stocks.

About ODDITY Tech

Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands. In addition, it operates ODDITY LABS, a biotechnology center, which develops various ingredients, including novel molecules, probiotics, and peptides for beauty and wellness products. Oddity Tech Ltd. was incorporated in 2013 and is headquartered in Tel Aviv, Israel.

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.