Critical Contrast: Consensus Cloud Solutions (NASDAQ:CCSI) versus Arista Networks (NYSE:ANET)

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

Profitability

This table compares Consensus Cloud Solutions and Arista Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consensus Cloud Solutions	24.17%	-579.06%	14.35%
Arista Networks	38.99%	31.34%	21.02%

Volatility & Risk

Consensus Cloud Solutions has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Arista Networks has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Insider & Institutional Ownership

93.9% of Consensus Cloud Solutions shares are held by institutional investors. Comparatively, 82.5% of Arista Networks shares are held by institutional investors. 1.9% of Consensus Cloud Solutions shares are held by company insiders. Comparatively, 3.4% of Arista Networks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Consensus Cloud Solutions and Arista Networks”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consensus Cloud Solutions	$349.70 million	1.61	$89.43 million	$4.35	6.81
Arista Networks	$9.01 billion	19.78	$2.85 billion	$2.76	51.25

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

Analyst Ratings

This is a summary of current recommendations for Consensus Cloud Solutions and Arista Networks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consensus Cloud Solutions	0	1	2	0	2.67
Arista Networks	0	5	18	0	2.78

Consensus Cloud Solutions presently has a consensus target price of $33.50, suggesting a potential upside of 13.14%. Arista Networks has a consensus target price of $175.41, suggesting a potential upside of 24.01%. Given Arista Networks’ stronger consensus rating and higher probable upside, analysts clearly believe Arista Networks is more favorable than Consensus Cloud Solutions.

Summary

Arista Networks beats Consensus Cloud Solutions on 11 of the 14 factors compared between the two stocks.

About Consensus Cloud Solutions

Consensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide. The company offers eFax Corporate, a digital cloud-fax technology; Unite, a single platform that allows the user to choose between various protocols to send and receive healthcare information and can integrate into an existing electronic health record system or stand-alone if no EHR is present. It also offers jsign, an electronic and digital signature solution; Conductor, an interface engine and interoperability platform that provides integration technology; Clarity that transforms unstructured documents into structured actionable data; and eFax, an online faxing solution, as well as other products under the MyFax, MetroFax, Sfax, and SRfax brands. In addition, the company provides ECFax, an Corporate eFax. It serves healthcare, government, financial services, law, and education sectors. Consensus Cloud Solutions, Inc. was incorporated in 2021 and is headquartered in Los Angeles, California.

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.