WallStSmart

Digi International Inc (DGII)vsLumentum Holdings Inc (LITE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lumentum Holdings Inc generates 369% more annual revenue ($2.11B vs $448.82M). LITE leads profitability with a 11.9% profit margin vs 9.4%. DGII appears more attractively valued with a PEG of 0.83. LITE earns a higher WallStSmart Score of 69/100 (B-).

DGII

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 5.5Value: 7.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.44

LITE

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 6.5Value: 4.7Quality: 3.8
Piotroski: 4/9Altman Z: 0.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DGIISignificantly Overvalued (-35.9%)

Margin of Safety

-35.9%

Fair Value

$34.14

Current Price

$50.66

$16.52 premium

UndervaluedFair: $34.14Overvalued
LITESignificantly Overvalued (-255.6%)

Margin of Safety

-255.6%

Fair Value

$161.46

Current Price

$777.17

$615.71 premium

UndervaluedFair: $161.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DGII4 strengths · Avg: 8.3/10
Debt/EquityHealth
0.249/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
17.9%8/10

17.9% revenue growth

LITE5 strengths · Avg: 9.2/10
Revenue GrowthGrowth
65.5%10/10

Revenue surging 65.5% year-over-year

EPS GrowthGrowth
71.1%10/10

Earnings expanding 71.1% YoY

Market CapQuality
$57.26B9/10

Large-cap with strong market position

Return on EquityProfitability
29.3%9/10

Every $100 of equity generates 29 in profit

PEG RatioValuation
0.978/10

Growing faster than its price suggests

Areas to Watch

DGII4 concerns · Avg: 2.8/10
Market CapQuality
$1.87B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
44.3x2/10

Premium valuation, high expectations priced in

LITE3 concerns · Avg: 2.0/10
P/E RatioValuation
232.5x2/10

Premium valuation, high expectations priced in

Price/BookValuation
65.5x2/10

Trading at 65.5x book value

Altman Z-ScoreHealth
0.582/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : DGII

The strongest argument for DGII centers on Debt/Equity, PEG Ratio, Price/Book. Revenue growth of 17.9% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.

Bull Case : LITE

The strongest argument for LITE centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 65.5% demonstrates continued momentum. PEG of 0.97 suggests the stock is reasonably priced for its growth.

Bear Case : DGII

The primary concerns for DGII are Market Cap, Return on Equity, Piotroski F-Score. A P/E of 44.3x leaves little room for execution misses.

Bear Case : LITE

The primary concerns for LITE are P/E Ratio, Price/Book, Altman Z-Score. A P/E of 232.5x leaves little room for execution misses.

Key Dynamics to Monitor

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.

LITE generates stronger free cash flow (51M), providing more financial flexibility.

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

Bottom Line

LITE scores higher overall (69/100 vs 57/100) 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.

Digi International Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Digi International Inc. provides mission-critical and enterprise Internet of Things (IoT) products, services and solutions in the United States and internationally. The company is headquartered in Hopkins, Minnesota.

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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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