Ciena Corp (CIEN)vsLumentum Holdings Inc (LITE)
CIEN
Ciena Corp
$385.26
+4.11%
TECHNOLOGY · Cap: $54.50B
LITE
Lumentum Holdings Inc
$700.81
+7.89%
TECHNOLOGY · Cap: $44.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Ciena Corp generates 143% more annual revenue ($5.12B vs $2.11B). LITE leads profitability with a 11.9% profit margin vs 4.5%. LITE appears more attractively valued with a PEG of 0.97. LITE earns a higher WallStSmart Score of 69/100 (B-).
CIEN
Buy54
out of 100
Grade: C-
LITE
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-302.0%
Fair Value
$73.94
Current Price
$385.26
$311.32 premium
Margin of Safety
-256.6%
Fair Value
$160.99
Current Price
$700.81
$539.82 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 33.1% year-over-year
Large-cap with strong market position
Revenue surging 65.5% year-over-year
Earnings expanding 71.1% YoY
Every $100 of equity generates 29 in profit
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Trading at 19.5x book value
2.3% earnings growth
4.5% margin — thin
Premium valuation, high expectations priced in
Trading at 59.1x book value
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CIEN
The strongest argument for CIEN centers on Revenue Growth, Market Cap. Revenue growth of 33.1% demonstrates continued momentum.
Bull Case : LITE
The strongest argument for LITE centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 65.5% demonstrates continued momentum. PEG of 0.97 suggests the stock is reasonably priced for its growth.
Bear Case : CIEN
The primary concerns for CIEN are PEG Ratio, Price/Book, EPS Growth. A P/E of 243.8x leaves little room for execution misses. Thin 4.5% margins leave little buffer for downturns.
Bear Case : LITE
The primary concerns for LITE are P/E Ratio, Price/Book, Altman Z-Score. A P/E of 181.6x leaves little room for execution misses.
Key Dynamics to Monitor
CIEN profiles as a hypergrowth stock while LITE is a growth play — different risk/reward profiles.
LITE carries more volatility with a beta of 1.41 — expect wider price swings.
LITE is growing revenue faster at 65.5% — sustainability is the question.
CIEN generates stronger free cash flow (154M), providing more financial flexibility.
Bottom Line
LITE scores higher overall (69/100 vs 54/100) and 65.5% revenue growth. Both earn "Strong Buy" and "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.
Ciena Corp
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ciena Corporation provides hardware, software, and network services that support the transport, routing, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks worldwide. The company is headquartered in Hanover, Maryland.
Visit Website →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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