Lumentum Holdings Inc (LITE)vsUSA Rare Earth, Inc. (USAR)
LITE
Lumentum Holdings Inc
$903.80
+1.26%
TECHNOLOGY · Cap: $69.44B
USAR
USA Rare Earth, Inc.
$26.96
+2.20%
BASIC MATERIALS · Cap: $6.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Lumentum Holdings Inc generates 151355% more annual revenue ($2.49B vs $1.64M). LITE leads profitability with a 17.7% profit margin vs 0.0%. LITE earns a higher WallStSmart Score of 74/100 (B).
LITE
Strong Buy74
out of 100
Grade: B
USAR
Avoid21
out of 100
Grade: F
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%
No standout strengths identified
Areas to Watch
Premium valuation, high expectations priced in
Trading at 76.2x book value
Distress zone — elevated risk
Trading at 8.1x book value
0.0% revenue growth
0.0% earnings growth
0.0% margin — thin
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 : USAR
USAR has a balanced fundamental profile.
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 : USAR
The primary concerns for USAR are Price/Book, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
LITE profiles as a growth stock while USAR is a value play — different risk/reward profiles.
USAR carries more volatility with a beta of 2.42 — expect wider price swings.
LITE is growing revenue faster at 90.1% — sustainability is the question.
LITE generates stronger free cash flow (79M), providing more financial flexibility.
Bottom Line
LITE scores higher overall (74/100 vs 21/100), backed by strong 17.7% margins and 90.1% revenue growth. Both earn "Strong Buy" and "Avoid" 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.
USA Rare Earth, Inc.
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
USA Rare Earth, Inc. engages in mining, processing, and supplying rare earths and other critical minerals. The company is headquartered in Stillwater, Oklahoma.
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