Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsLumentum Holdings Inc (LITE)
ERIC
Telefonaktiebolaget LM Ericsson B ADR
$12.56
-5.92%
TECHNOLOGY · Cap: $40.78B
LITE
Lumentum Holdings Inc
$945.08
-2.30%
TECHNOLOGY · Cap: $74.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Telefonaktiebolaget LM Ericsson B ADR generates 9557% more annual revenue ($240.31B vs $2.49B). LITE leads profitability with a 17.7% profit margin vs 10.9%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 74/100 (B).
ERIC
Hold42
out of 100
Grade: D
LITE
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.1%
Fair Value
$28.62
Current Price
$12.56
$16.06 discount
Intrinsic value data unavailable for LITE.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Generating 7.0B in free cash flow
Revenue surging 90.1% year-over-year
Earnings expanding 71.1% YoY
Large-cap with strong market position
Growing faster than its price suggests
Strong operational efficiency at 21.8%
Areas to Watch
Operating margin of 0.0%
Expensive relative to growth rate
Revenue declined 10.3%
Earnings declined 78.5%
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 79.7x book value
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ERIC
The strongest argument for ERIC centers on Price/Book, Return on Equity, P/E Ratio.
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 : ERIC
The primary concerns for ERIC are Operating Margin, PEG Ratio, Revenue Growth.
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
ERIC profiles as a declining stock while LITE is a growth play — different risk/reward profiles.
LITE carries more volatility with a beta of 1.48 — expect wider price swings.
LITE is growing revenue faster at 90.1% — sustainability is the question.
ERIC generates stronger free cash flow (7.0B), providing more financial flexibility.
Bottom Line
LITE scores higher overall (74/100 vs 42/100), backed by strong 17.7% margins and 90.1% revenue growth. ERIC offers better value entry with a 61.1% 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.
Telefonaktiebolaget LM Ericsson B ADR
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Telefonaktiebolaget LM Ericsson (publ), provides communications infrastructure, services and software solutions for telecommunications and other sectors. The company is headquartered in Stockholm, Sweden.
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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