Cisco Systems Inc (CSCO)vsLumentum Holdings Inc (LITE)
CSCO
Cisco Systems Inc
$77.60
+1.17%
TECHNOLOGY · Cap: $311.74B
LITE
Lumentum Holdings Inc
$700.81
+7.89%
TECHNOLOGY · Cap: $44.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Cisco Systems Inc generates 2705% more annual revenue ($59.05B vs $2.11B). CSCO leads profitability with a 18.8% profit margin vs 11.9%. LITE appears more attractively valued with a PEG of 0.97. CSCO earns a higher WallStSmart Score of 70/100 (B-).
CSCO
Strong Buy70
out of 100
Grade: B-
LITE
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+39.6%
Fair Value
$130.10
Current Price
$77.60
$52.50 discount
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
Mega-cap, among the largest globally
Every $100 of equity generates 24 in profit
Strong operational efficiency at 24.9%
Earnings expanding 31.2% YoY
Generating 1.5B in free cash flow
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
Moderate valuation
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 59.1x book value
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CSCO
The strongest argument for CSCO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 18.8% and operating margin at 24.9%. PEG of 1.34 suggests the stock is reasonably priced for its growth.
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 : CSCO
The primary concerns for CSCO are P/E Ratio, Altman Z-Score.
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
CSCO profiles as a mature 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.
CSCO generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
CSCO scores higher overall (70/100 vs 69/100), backed by strong 18.8% margins. 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.
Cisco Systems Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Cisco Systems, Inc. is an American multinational technology conglomerate headquartered in San Jose, California, in the center of Silicon Valley. Cisco develops, manufactures and sells networking hardware, software, telecommunications equipment and other high-technology services and products. Through its numerous acquired subsidiaries, such as OpenDNS, Webex, Jabber and Jasper, Cisco specializes in specific tech markets, such as the Internet of Things (IoT), domain security and energy management. On January 25, 2021, Cisco reincorporated in Delaware.
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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