WallStSmart

Lumentum Holdings Inc (LITE)vsSilicom (SILC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lumentum Holdings Inc generates 3634% more annual revenue ($2.49B vs $66.64M). LITE leads profitability with a 17.7% profit margin vs -16.6%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 74/100 (B).

LITE

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 6.5Value: 5.0Quality: 4.0
Piotroski: 4/9Altman Z: 0.58

SILC

Hold

36

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 7.0Quality: 7.8
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for LITE.

SILCUndervalued (+31.4%)

Margin of Safety

+31.4%

Fair Value

$27.89

Current Price

$42.98

$15.09 discount

UndervaluedFair: $27.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LITE5 strengths · Avg: 9.0/10
Revenue GrowthGrowth
90.1%10/10

Revenue surging 90.1% year-over-year

EPS GrowthGrowth
71.1%10/10

Earnings expanding 71.1% YoY

Market CapQuality
$80.07B9/10

Large-cap with strong market position

PEG RatioValuation
0.638/10

Growing faster than its price suggests

Operating MarginProfitability
21.8%8/10

Strong operational efficiency at 21.8%

SILC3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
32.8%10/10

Revenue surging 32.8% year-over-year

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

LITE4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.113/10

Elevated debt levels

P/E RatioValuation
181.8x2/10

Premium valuation, high expectations priced in

Price/BookValuation
79.7x2/10

Trading at 79.7x book value

Altman Z-ScoreHealth
0.582/10

Distress zone — elevated risk

SILC4 concerns · Avg: 2.0/10
Market CapQuality
$271.95M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-9.2%2/10

ROE of -9.2% — below average capital efficiency

EPS GrowthGrowth
-79.6%2/10

Earnings declined 79.6%

Profit MarginProfitability
-16.6%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : SILC

The strongest argument for SILC centers on Revenue Growth, Debt/Equity, Price/Book. Revenue growth of 32.8% demonstrates continued momentum. PEG of 1.41 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 181.8x leaves little room for execution misses.

Bear Case : SILC

The primary concerns for SILC are Market Cap, Return on Equity, EPS Growth.

Key Dynamics to Monitor

LITE profiles as a growth stock while SILC is a hypergrowth play — different risk/reward profiles.

SILC carries more volatility with a beta of 1.58 — expect wider price swings.

LITE is growing revenue faster at 90.1% — sustainability is the question.

Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LITE scores higher overall (74/100 vs 36/100), backed by strong 17.7% margins and 90.1% revenue growth. SILC offers better value entry with a 31.4% 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.

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.

Silicom

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Silicom Ltd. designs, manufactures, markets and supports network and data infrastructure solutions for a variety of servers, server-based systems, and communications devices in North America, Europe, and Asia Pacific. The company is headquartered in Kfar Sava, Israel.

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