WallStSmart

Ciena Corp (CIEN)vsUbiquiti Networks Inc (UI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ciena Corp generates 80% more annual revenue ($5.57B vs $3.10B). UI leads profitability with a 30.4% profit margin vs 7.9%. CIEN appears more attractively valued with a PEG of 0.65. CIEN earns a higher WallStSmart Score of 66/100 (B-).

CIEN

Strong Buy

66

out of 100

Grade: B-

Growth: 8.7Profit: 6.5Value: 5.0Quality: 6.0
Piotroski: 5/9Altman Z: 1.18

UI

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 10.0Value: 4.0Quality: 9.0
Piotroski: 5/9Altman Z: 5.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CIEN.

UISignificantly Overvalued (-44.1%)

Margin of Safety

-44.1%

Fair Value

$371.06

Current Price

$523.05

$151.99 premium

UndervaluedFair: $371.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CIEN4 strengths · Avg: 9.3/10
Revenue GrowthGrowth
39.5%10/10

Revenue surging 39.5% year-over-year

EPS GrowthGrowth
2383.0%10/10

Earnings expanding 2383.0% YoY

Market CapQuality
$56.22B9/10

Large-cap with strong market position

PEG RatioValuation
0.658/10

Growing faster than its price suggests

UI6 strengths · Avg: 9.7/10
Return on EquityProfitability
78.4%10/10

Every $100 of equity generates 78 in profit

Profit MarginProfitability
30.4%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
36.9%10/10

Strong operational efficiency at 36.9%

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.1410/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
18.7%8/10

18.7% revenue growth

Areas to Watch

CIEN4 concerns · Avg: 2.8/10
Price/BookValuation
16.2x4/10

Trading at 16.2x book value

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

P/E RatioValuation
136.9x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.182/10

Distress zone — elevated risk

UI2 concerns · Avg: 3.0/10
P/E RatioValuation
34.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
26.3x2/10

Trading at 26.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CIEN

The strongest argument for CIEN centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 39.5% demonstrates continued momentum. PEG of 0.65 suggests the stock is reasonably priced for its growth.

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 : CIEN

The primary concerns for CIEN are Price/Book, Profit Margin, P/E Ratio. A P/E of 136.9x leaves little room for execution misses.

Bear Case : UI

The primary concerns for UI are P/E Ratio, Price/Book.

Key Dynamics to Monitor

CIEN profiles as a hypergrowth stock while UI is a growth play — different risk/reward profiles.

UI carries more volatility with a beta of 1.31 — expect wider price swings.

CIEN is growing revenue faster at 39.5% — sustainability is the question.

CIEN generates stronger free cash flow (219M), providing more financial flexibility.

Bottom Line

CIEN scores higher overall (66/100 vs 65/100) and 39.5% 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.

Ciena Corp

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Ciena Corporation provides hardware, software, and network services that support the transport, routing, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks worldwide. The company is headquartered in Hanover, Maryland.

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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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