WallStSmart

ADTRAN Inc (ADTN)vsLumentum Holdings Inc (LITE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lumentum Holdings Inc generates 122% more annual revenue ($2.49B vs $1.12B). LITE leads profitability with a 17.7% profit margin vs -3.2%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 74/100 (B).

ADTN

Hold

37

out of 100

Grade: F

Growth: 4.7Profit: 2.5Value: 6.3Quality: 4.5
Piotroski: 4/9Altman Z: 0.75

LITE

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 6.5Value: 5.0Quality: 4.0
Piotroski: 4/9Altman Z: 0.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADTNUndervalued (+68.3%)

Margin of Safety

+68.3%

Fair Value

$32.80

Current Price

$15.35

$17.45 discount

UndervaluedFair: $32.80Overvalued

Intrinsic value data unavailable for LITE.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADTN1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
15.5%8/10

15.5% revenue growth

LITE5 strengths · Avg: 9.0/10
Revenue GrowthGrowth
90.1%10/10

Revenue surging 90.1% year-over-year

EPS GrowthGrowth
71.1%10/10

Earnings expanding 71.1% YoY

Market CapQuality
$80.07B9/10

Large-cap with strong market position

PEG RatioValuation
0.638/10

Growing faster than its price suggests

Operating MarginProfitability
21.8%8/10

Strong operational efficiency at 21.8%

Areas to Watch

ADTN4 concerns · Avg: 3.5/10
PEG RatioValuation
1.864/10

Expensive relative to growth rate

Price/BookValuation
9.0x4/10

Trading at 9.0x book value

Market CapQuality
$1.45B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.3%3/10

Operating margin of 2.3%

LITE4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.113/10

Elevated debt levels

P/E RatioValuation
181.8x2/10

Premium valuation, high expectations priced in

Price/BookValuation
79.7x2/10

Trading at 79.7x book value

Altman Z-ScoreHealth
0.582/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ADTN

The strongest argument for ADTN centers on Revenue Growth. Revenue growth of 15.5% demonstrates continued momentum.

Bull Case : LITE

The strongest argument for LITE centers on Revenue Growth, EPS Growth, Market Cap. Profitability is solid with margins at 17.7% and operating margin at 21.8%. Revenue growth of 90.1% demonstrates continued momentum.

Bear Case : ADTN

The primary concerns for ADTN are PEG Ratio, Price/Book, Market Cap. Debt-to-equity of 1.59 is elevated, increasing financial risk.

Bear Case : LITE

The primary concerns for LITE are Debt/Equity, P/E Ratio, Price/Book. A P/E of 181.8x leaves little room for execution misses.

Key Dynamics to Monitor

LITE carries more volatility with a beta of 1.53 — expect wider price swings.

LITE is growing revenue faster at 90.1% — sustainability is the question.

LITE generates stronger free cash flow (79M), providing more financial flexibility.

Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LITE scores higher overall (74/100 vs 37/100), backed by strong 17.7% margins and 90.1% revenue growth. ADTN offers better value entry with a 68.3% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

ADTRAN Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

ADTRAN, Inc. provides networking and communications platforms and services for service providers, cable / multi-system operators, small and medium-sized businesses, and distributed businesses in the United States, Germany, Mexico, and internationally. The company is headquartered in Huntsville, Alabama.

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Lumentum Holdings Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, Asia-Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.

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