Lumentum Holdings Inc (LITE)vsToyota Motor Corporation ADR (TM)
LITE
Lumentum Holdings Inc
$903.80
+1.26%
TECHNOLOGY · Cap: $69.44B
TM
Toyota Motor Corporation ADR
$187.53
-0.78%
CONSUMER CYCLICAL · Cap: $230.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Toyota Motor Corporation ADR generates 2027338% more annual revenue ($50.45T vs $2.49B). LITE leads profitability with a 17.7% profit margin vs 7.3%. 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
TM
Buy55
out of 100
Grade: C
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
Every $100 of equity generates 23 in profit
Growing faster than its price suggests
Strong operational efficiency at 21.8%
Mega-cap, among the largest globally
Attractively priced relative to earnings
Generating 592.1B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Trading at 76.2x book value
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 16.0x book value
7.3% margin — thin
Earnings declined 42.3%
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 : TM
The strongest argument for TM centers on Market Cap, P/E Ratio, Free Cash Flow.
Bear Case : LITE
The primary concerns for LITE are P/E Ratio, Price/Book, Altman Z-Score. A P/E of 156.3x leaves little room for execution misses.
Bear Case : TM
The primary concerns for TM are PEG Ratio, Price/Book, Profit Margin.
Key Dynamics to Monitor
LITE profiles as a growth stock while TM is a value play — different risk/reward profiles.
LITE carries more volatility with a beta of 1.53 — expect wider price swings.
LITE is growing revenue faster at 90.1% — sustainability is the question.
TM generates stronger free cash flow (592.1B), providing more financial flexibility.
Bottom Line
LITE scores higher overall (74/100 vs 55/100), backed by strong 17.7% margins and 90.1% 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.
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.
Toyota Motor Corporation ADR
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Toyota Motor Corporation designs, manufactures, assembles and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company is headquartered in Toyota, Japan.
Compare with Other COMMUNICATION EQUIPMENT Stocks
Want to dig deeper into these stocks?