Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsLumentum Holdings Inc (LITE)
ERIC
Telefonaktiebolaget LM Ericsson B ADR
$11.07
-0.14%
TECHNOLOGY · Cap: $35.91B
LITE
Lumentum Holdings Inc
$913.95
+0.61%
TECHNOLOGY · Cap: $74.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Telefonaktiebolaget LM Ericsson B ADR generates 7873% more annual revenue ($240.31B vs $3.01B). ERIC leads profitability with a 8.4% profit margin vs -230.1%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 57/100 (C).
ERIC
Hold41
out of 100
Grade: D
LITE
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+66.5%
Fair Value
$33.29
Current Price
$11.06
$22.23 discount
Intrinsic value data unavailable for LITE.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Generating 5.3B in free cash flow
Revenue surging 109.3% year-over-year
Earnings expanding 71.1% YoY
Large-cap with strong market position
Growing faster than its price suggests
Strong operational efficiency at 28.0%
Areas to Watch
Operating margin of 0.0%
Expensive relative to growth rate
Earnings declined 46.8%
Trading at 17.4x book value
ROE of -149.3% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : ERIC
The strongest argument for ERIC centers on Price/Book, P/E Ratio, Free Cash Flow.
Bull Case : LITE
The strongest argument for LITE centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 109.3% demonstrates continued momentum. PEG of 0.63 suggests the stock is reasonably priced for its growth.
Bear Case : ERIC
The primary concerns for ERIC are Operating Margin, PEG Ratio, EPS Growth.
Bear Case : LITE
The primary concerns for LITE are Price/Book, Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
ERIC profiles as a value stock while LITE is a hypergrowth play — different risk/reward profiles.
LITE carries more volatility with a beta of 1.54 — expect wider price swings.
LITE is growing revenue faster at 109.3% — sustainability is the question.
ERIC generates stronger free cash flow (5.3B), providing more financial flexibility.
Bottom Line
LITE scores higher overall (57/100 vs 41/100) and 109.3% revenue growth. ERIC offers better value entry with a 66.5% margin of safety. Both earn "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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