Infrastructure Play: COMM and ANET Diverge on Growth and Valuation—Which Deserves Your Attention?

In the realm of networking infrastructure stocks, two names frequently enter investor conversations: CommScope Holding Company, Inc. COMM and Arista Networks, Inc. ANET. While both operate in overlapping market segments, their trajectories tell very different stories about execution, profitability, and forward momentum.

Divergent Trajectories: The Numbers Tell the Story

Start with recent performance. Over the past 12 months, COMM has delivered a stunning 260.6% return, while ANET has logged a more modest 7.4% gain. At first glance, this might suggest COMM is the clear winner. But dig deeper, and the picture becomes muddled.

The Zacks Consensus Estimate reveals structural differences in how analysts view these companies’ futures. ANET’s 2025 projections show sales climbing 26.7% and EPS expanding 26.9%—consistent with market expectations, which have held steady over the past two months. By contrast, COMM’s consensus calls for a 17.1% sales bump but an astonishing 5,600% EPS surge, a figure that stretches credibility and suggests either extraordinary margin expansion or one-time accounting adjustments.

Long-term, the gap narrows but persists. ANET carries long-term earnings growth expectations of 20.1%, while COMM trails at 13.5%. This divergence matters for investors seeking sustained value creation.

Product Strategy and Market Positioning

ANET’s Approach: Software-First Infrastructure

Arista has doubled down on its competitive moat: a unified software foundation spanning data centers, campuses, and cloud architectures. The company’s single EOS operating system and CloudVision stack create stickiness with customers, enabling seamless network management and automation across diverse environments.

Recent initiatives underscore this direction. CloudEOS Edge extends the software ecosystem into new use cases, while newly introduced cognitive Wi-Fi capabilities automate troubleshooting and application identification—tasks that traditionally consumed IT resources. The architecture supports zero-touch operations and predictive insights, particularly valuable as artificial intelligence workloads strain network infrastructure.

The payoff: Arista commands premium positioning in 100-gigabit and emerging 200/400-gigabit switch markets, where enterprise customers increasingly seek software-defined solutions.

COMM’s Approach: Portfolio Consolidation

CommScope has taken the opposite road—aggressively shedding peripheral businesses to sharpen focus. Divesting its Home Networks segment to Vantiva marked a strategic reset. More importantly, the acquisition of Casa Systems’ Cable Business bolstered access network capabilities, specifically virtual CMTS and PON (Passive Optical Network) offerings.

A recent product launch—the HX6-611-6WH/B microwave backhaul antenna—demonstrates the company’s pivot toward wireless infrastructure. Operating across 6 GHz and 11 GHz bands, this solution addresses mobile operators’ escalating capacity demands, though it signals that CommScope is chasing growth in spaces where competition remains intense.

The Cost Structures: A Hidden Challenge

Here’s where ANET stumbles. Operating expenses surged 36% year-over-year in Q3 2025 to $512 million, driven by headcount expansion, product development costs, and climbing variable compensation. Margin erosion has followed, a particularly stubborn problem given that product redesigns and supply chain restructuring haven’t yet freed up cash.

COMM, conversely, has benefited from ruthless cost discipline and business rationalization. This operational leverage is visible in the company’s recent valuation premium to ANET on a price-to-earnings basis: COMM trades at 10.51 forward P/E versus ANET’s 37.07.

Market Headwinds Differentially Impact Each

Neither company operates in a frictionless environment. ANET continues wrestling with supply constraints in its most advanced product lines, even as demand accelerates. This mismatch between orders and fulfillment has depressed growth relative to market opportunity.

COMM faces a more systematic challenge. Geopolitical tensions—specifically U.S.-China trade restrictions on communication equipment exports—have directly hindered the company’s international sales. Raw material volatility compounds the problem, creating margin unpredictability. Additionally, COMM confronts heavyweight competitors in Amphenol Corporation and Corning Incorporated in multiple markets, each with their own scale advantages.

The Verdict: Zacks Rankings Reflect This Complexity

ANET carries a Zacks Rank #2 (Buy) designation, while COMM holds Rank #3 (Hold). The distinction matters. Arista’s consistent multi-year revenue and earnings delivery, combined with superior long-term growth projections, positions it as the more defensible choice for patient capital. COMM’s dramatic 260% rally has priced in much optimism, and while its valuation looks cheaper today, that discount reflects legitimate operational risks.

For investors, the choice hinges on conviction: Do you believe COMM can sustain its operational turnaround while navigating geopolitical and competitive pressures? Or does ANET’s steady, software-driven growth trajectory justify its premium valuation? The market’s recent preference for COMM’s rebound narrative shouldn’t overshadow ANET’s structural advantages in the data center era.