WallStSmart

Harmonic Inc (HLIT)vsLumentum Holdings Inc (LITE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lumentum Holdings Inc generates 484% more annual revenue ($2.11B vs $360.52M). LITE leads profitability with a 11.9% profit margin vs -12.0%. LITE appears more attractively valued with a PEG of 0.97. LITE earns a higher WallStSmart Score of 69/100 (B-).

HLIT

Avoid

34

out of 100

Grade: F

Growth: 2.0Profit: 3.5Value: 4.7Quality: 6.0
Piotroski: 2/9Altman Z: -1.79

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

HLITSignificantly Overvalued (-14200.0%)

Margin of Safety

-14200.0%

Fair Value

$0.07

Current Price

$9.51

$9.44 premium

UndervaluedFair: $0.07Overvalued
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

HLIT1 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

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

HLIT4 concerns · Avg: 3.3/10
PEG RatioValuation
1.844/10

Expensive relative to growth rate

Market CapQuality
$1.01B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.3%3/10

ROE of 0.3% — below average capital efficiency

Operating MarginProfitability
3.8%3/10

Operating margin of 3.8%

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 : HLIT

The strongest argument for HLIT centers on Price/Book.

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 : HLIT

The primary concerns for HLIT are PEG Ratio, Market Cap, Return on Equity. A P/E of 900.0x 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

HLIT profiles as a turnaround 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.

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

Bottom Line

LITE scores higher overall (69/100 vs 34/100) and 65.5% revenue growth. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Harmonic Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Harmonic Inc. provides global video delivery software, products, system solutions and services. The company is headquartered in San Jose, California.

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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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