Lumentum Holdings Inc (LITE)vsSonos Inc (SONO)
LITE
Lumentum Holdings Inc
$939.03
+1.82%
TECHNOLOGY · Cap: $86.91B
SONO
Sonos Inc
$15.10
-1.50%
TECHNOLOGY · Cap: $1.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Lumentum Holdings Inc generates 102% more annual revenue ($3.01B vs $1.49B). SONO leads profitability with a 3.8% profit margin vs -230.1%. LITE earns a higher WallStSmart Score of 57/100 (C).
LITE
Buy57
out of 100
Grade: C
SONO
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LITE.
Margin of Safety
-31.8%
Fair Value
$12.52
Current Price
$15.10
$2.58 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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 28.3%
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Trading at 22.6x book value
ROE of -149.3% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : LITE
The primary concerns for LITE are Price/Book, Return on Equity, Altman Z-Score.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
LITE profiles as a hypergrowth stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.93 — expect wider price swings.
LITE is growing revenue faster at 109.3% — sustainability is the question.
LITE generates stronger free cash flow (287M), providing more financial flexibility.
Bottom Line
LITE scores higher overall (57/100 vs 51/100) and 109.3% revenue growth. Both earn "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.
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.
Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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