Extreme Networks Inc (EXTR)vsLumentum Holdings Inc (LITE)
EXTR
Extreme Networks Inc
$15.46
+2.05%
TECHNOLOGY · Cap: $2.08B
LITE
Lumentum Holdings Inc
$777.17
-3.09%
TECHNOLOGY · Cap: $57.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Lumentum Holdings Inc generates 73% more annual revenue ($2.11B vs $1.22B). EXTR leads profitability with a 75.0% profit margin vs 11.9%. EXTR appears more attractively valued with a PEG of 0.58. LITE earns a higher WallStSmart Score of 69/100 (B-).
EXTR
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
-1491.5%
Fair Value
$0.94
Current Price
$15.46
$14.52 premium
Margin of Safety
-255.6%
Fair Value
$161.46
Current Price
$777.17
$615.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 75 of every $100 in revenue as profit
Growing faster than its price suggests
Revenue surging 65.5% year-over-year
Earnings expanding 71.1% YoY
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Growing faster than its price suggests
Areas to Watch
Premium valuation, high expectations priced in
Trading at 21.5x book value
Premium valuation, high expectations priced in
Trading at 65.5x book value
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : EXTR
The strongest argument for EXTR centers on Profit Margin, PEG Ratio. Profitability is solid with margins at 75.0% and operating margin at 6.4%. Revenue growth of 13.8% demonstrates continued momentum.
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 : EXTR
The primary concerns for EXTR are P/E Ratio, Price/Book. A P/E of 257.7x 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
EXTR profiles as a mature stock while LITE is a growth play — different risk/reward profiles.
EXTR carries more volatility with a beta of 1.71 — 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.
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.
Extreme Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Extreme Networks, Inc. provides software-driven networking solutions for businesses, data centers, and service provider customers globally. The company is headquartered in San Jose, California.
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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