Lumentum Holdings Inc (LITE)vsUbiquiti Networks Inc (UI)
LITE
Lumentum Holdings Inc
$930.91
+4.17%
TECHNOLOGY · Cap: $83.93B
UI
Ubiquiti Networks Inc
$589.48
-1.17%
TECHNOLOGY · Cap: $34.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Ubiquiti Networks Inc generates 9% more annual revenue ($3.27B vs $3.01B). UI leads profitability with a 29.3% profit margin vs -230.1%. LITE appears more attractively valued with a PEG of 0.63. UI earns a higher WallStSmart Score of 63/100 (C+).
LITE
Buy57
out of 100
Grade: C
UI
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LITE.
Margin of Safety
-51.2%
Fair Value
$394.45
Current Price
$589.48
$195.03 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 28.0%
Every $100 of equity generates 67 in profit
Strong operational efficiency at 36.3%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
Revenue surging 23.5% year-over-year
Areas to Watch
Trading at 17.8x book value
ROE of -149.3% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Premium valuation, high expectations priced in
Weak financial health signals
Trading at 29.7x book value
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 : UI
The strongest argument for UI centers on Return on Equity, Operating Margin, Debt/Equity. Profitability is solid with margins at 29.3% and operating margin at 36.3%. Revenue growth of 23.5% demonstrates continued momentum.
Bear Case : LITE
The primary concerns for LITE are Price/Book, Return on Equity, Altman Z-Score.
Bear Case : UI
The primary concerns for UI are P/E Ratio, Piotroski F-Score, Price/Book.
Key Dynamics to Monitor
LITE profiles as a hypergrowth stock while UI is a growth play — different risk/reward profiles.
LITE carries more volatility with a beta of 1.54 — expect wider price swings.
LITE is growing revenue faster at 109.3% — sustainability is the question.
UI generates stronger free cash flow (293M), providing more financial flexibility.
Bottom Line
UI scores higher overall (63/100 vs 57/100), backed by strong 29.3% margins and 23.5% 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.
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.
Compare with Other COMMUNICATION EQUIPMENT Stocks
Want to dig deeper into these stocks?