WallStSmart

Arista Networks (ANET)vsLumentum Holdings Inc (LITE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Arista Networks generates 290% more annual revenue ($9.71B vs $2.49B). ANET leads profitability with a 38.3% profit margin vs 17.7%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 74/100 (B).

ANET

Strong Buy

72

out of 100

Grade: B

Growth: 9.3Profit: 9.5Value: 5.3Quality: 6.8
Piotroski: 2/9Altman Z: 3.53

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

ANETUndervalued (+63.9%)

Margin of Safety

+63.9%

Fair Value

$465.25

Current Price

$166.15

$299.10 discount

UndervaluedFair: $465.25Overvalued

Intrinsic value data unavailable for LITE.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ANET6 strengths · Avg: 9.8/10
Market CapQuality
$212.91B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
38.3%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
42.7%10/10

Strong operational efficiency at 42.7%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

Altman Z-ScoreHealth
3.5310/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
27.6%9/10

Every $100 of equity generates 28 in profit

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
$74.47B9/10

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

ANET4 concerns · Avg: 3.3/10
PEG RatioValuation
2.184/10

Expensive relative to growth rate

Price/BookValuation
15.5x4/10

Trading at 15.5x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
58.1x2/10

Premium valuation, high expectations priced in

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

Elevated debt levels

P/E RatioValuation
169.4x2/10

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 : ANET

The strongest argument for ANET centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 38.3% and operating margin at 42.7%. Revenue growth of 35.1% 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 : ANET

The primary concerns for ANET are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 58.1x leaves little room for execution misses.

Bear Case : LITE

The primary concerns for LITE are Debt/Equity, P/E Ratio, Price/Book. A P/E of 169.4x leaves little room for execution misses.

Key Dynamics to Monitor

ANET carries more volatility with a beta of 1.61 — expect wider price swings.

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

ANET generates stronger free cash flow (1.6B), providing more financial flexibility.

Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LITE scores higher overall (74/100 vs 72/100), backed by strong 17.7% margins and 90.1% revenue growth. ANET offers better value entry with a 63.9% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Arista Networks

TECHNOLOGY · COMPUTER HARDWARE · USA

Arista Networks (formerly Arastra) is an American computer networking company headquartered in Santa Clara, California. The company designs and sells multilayer network switches to deliver software-defined networking (SDN) solutions for large datacenter, cloud computing, high-performance computing, and high-frequency trading environments.

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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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