Lumentum Holdings Inc (LITE)vsUbiquiti Networks Inc (UI)
LITE
Lumentum Holdings Inc
$651.93
-7.61%
TECHNOLOGY · Cap: $64.55B
UI
Ubiquiti Networks Inc
$523.05
-2.22%
TECHNOLOGY · Cap: $32.53B
Smart Verdict
WallStSmart Research — data-driven comparison
Ubiquiti Networks Inc generates 24% more annual revenue ($3.10B vs $2.49B). UI leads profitability with a 30.4% profit margin vs 17.7%. 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
UI
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LITE.
Margin of Safety
-44.1%
Fair Value
$371.06
Current Price
$523.05
$151.99 premium
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
Growing faster than its price suggests
Strong operational efficiency at 21.8%
Every $100 of equity generates 78 in profit
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 36.9%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
18.7% revenue growth
Areas to Watch
Trading at 15.7x book value
Elevated debt levels
Premium valuation, high expectations priced in
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 26.3x book value
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 : UI
The strongest argument for UI centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 30.4% and operating margin at 36.9%. Revenue growth of 18.7% demonstrates continued momentum.
Bear Case : LITE
The primary concerns for LITE are Price/Book, Debt/Equity, P/E Ratio. A P/E of 147.1x leaves little room for execution misses.
Bear Case : UI
The primary concerns for UI are P/E Ratio, Price/Book.
Key Dynamics to Monitor
LITE carries more volatility with a beta of 1.48 — expect wider price swings.
LITE is growing revenue faster at 90.1% — sustainability is the question.
UI generates stronger free cash flow (162M), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LITE scores higher overall (74/100 vs 65/100), backed by strong 17.7% margins and 90.1% 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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