Lumentum Holdings Inc (LITE)vsNETGEAR Inc (NTGR)
LITE
Lumentum Holdings Inc
$945.08
-2.30%
TECHNOLOGY · Cap: $74.47B
NTGR
NETGEAR Inc
$25.74
-1.72%
TECHNOLOGY · Cap: $648.18M
Smart Verdict
WallStSmart Research — data-driven comparison
Lumentum Holdings Inc generates 257% more annual revenue ($2.49B vs $696.38M). LITE leads profitability with a 17.7% profit margin vs -3.6%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 74/100 (B).
LITE
Strong Buy74
out of 100
Grade: B
NTGR
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LITE.
Margin of Safety
-5.4%
Fair Value
$19.47
Current Price
$25.74
$6.27 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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%
Reasonable price relative to book value
Conservative balance sheet, low leverage
Growing faster than its price suggests
Areas to Watch
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 79.7x book value
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of -8.5% — below average capital efficiency
Revenue declined 2.0%
Earnings declined 68.7%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : NTGR
The strongest argument for NTGR centers on Price/Book, Debt/Equity, PEG Ratio. PEG of 0.74 suggests the stock is reasonably priced for its 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.
Bear Case : NTGR
The primary concerns for NTGR are Market Cap, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
LITE profiles as a growth stock while NTGR is a turnaround 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.
LITE generates stronger free cash flow (79M), providing more financial flexibility.
Bottom Line
LITE scores higher overall (74/100 vs 44/100), backed by strong 17.7% margins and 90.1% revenue growth. 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.
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.
NETGEAR Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
NETGEAR, Inc. designs, develops, and markets Internet-connected products and networks for consumers, businesses, and service providers. The company is headquartered in San Jose, California.
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