Lumentum Holdings Inc (LITE)vsUbiquiti Networks Inc (UI)
LITE
Lumentum Holdings Inc
$700.81
+7.89%
TECHNOLOGY · Cap: $44.61B
UI
Ubiquiti Networks Inc
$784.88
-0.46%
TECHNOLOGY · Cap: $46.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Ubiquiti Networks Inc generates 41% more annual revenue ($2.97B vs $2.11B). UI leads profitability with a 29.9% profit margin vs 11.9%. UI appears more attractively valued with a PEG of 0.82. UI earns a higher WallStSmart Score of 73/100 (B).
LITE
Strong Buy69
out of 100
Grade: B-
UI
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-256.6%
Fair Value
$160.99
Current Price
$700.81
$539.82 premium
Margin of Safety
-1.8%
Fair Value
$700.60
Current Price
$784.88
$84.28 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 65.5% year-over-year
Earnings expanding 71.1% YoY
Every $100 of equity generates 29 in profit
Growing faster than its price suggests
Every $100 of equity generates 136 in profit
Strong operational efficiency at 35.9%
Revenue surging 35.8% year-over-year
Earnings expanding 70.8% YoY
Safe zone — low bankruptcy risk
Keeps 30 of every $100 in revenue as profit
Areas to Watch
Premium valuation, high expectations priced in
Trading at 59.1x book value
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 46.7x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : LITE
The strongest argument for LITE centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 65.5% demonstrates continued momentum. PEG of 0.97 suggests the stock is reasonably priced for its growth.
Bull Case : UI
The strongest argument for UI centers on Return on Equity, Operating Margin, Revenue Growth. Profitability is solid with margins at 29.9% and operating margin at 35.9%. Revenue growth of 35.8% demonstrates continued momentum.
Bear Case : LITE
The primary concerns for LITE are P/E Ratio, Price/Book, Altman Z-Score. A P/E of 181.6x leaves little room for execution misses.
Bear Case : UI
The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 51.8x leaves little room for execution misses.
Key Dynamics to Monitor
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.
UI generates stronger free cash flow (259M), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
UI scores higher overall (73/100 vs 69/100), backed by strong 29.9% margins and 35.8% revenue growth. Both earn "Strong Buy" and "Strong 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.
Ubiquiti Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.
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