WallStSmart

Clearfield Inc (CLFD)vsLumentum Holdings Inc (LITE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lumentum Holdings Inc generates 1575% more annual revenue ($2.49B vs $148.55M). LITE leads profitability with a 17.7% profit margin vs -5.8%. LITE trades at a lower P/E of 181.8x. LITE earns a higher WallStSmart Score of 74/100 (B).

CLFD

Avoid

23

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 3.0Quality: 9.0
Piotroski: 4/9Altman Z: 4.78

LITE

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 6.5Value: 5.0Quality: 4.0
Piotroski: 4/9Altman Z: 0.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CLFDSignificantly Overvalued (-29.4%)

Margin of Safety

-29.4%

Fair Value

$24.29

Current Price

$40.04

$15.75 premium

UndervaluedFair: $24.29Overvalued

Intrinsic value data unavailable for LITE.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CLFD3 strengths · Avg: 9.3/10
Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7810/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

LITE5 strengths · Avg: 9.0/10
Revenue GrowthGrowth
90.1%10/10

Revenue surging 90.1% year-over-year

EPS GrowthGrowth
71.1%10/10

Earnings expanding 71.1% YoY

Market CapQuality
$80.07B9/10

Large-cap with strong market position

PEG RatioValuation
0.638/10

Growing faster than its price suggests

Operating MarginProfitability
21.8%8/10

Strong operational efficiency at 21.8%

Areas to Watch

CLFD4 concerns · Avg: 2.3/10
Market CapQuality
$604.60M3/10

Smaller company, higher risk/reward

P/E RatioValuation
193.4x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-3.5%2/10

ROE of -3.5% — below average capital efficiency

Revenue GrowthGrowth
-15.3%2/10

Revenue declined 15.3%

LITE4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.113/10

Elevated debt levels

P/E RatioValuation
181.8x2/10

Premium valuation, high expectations priced in

Price/BookValuation
79.7x2/10

Trading at 79.7x book value

Altman Z-ScoreHealth
0.582/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CLFD

The strongest argument for CLFD centers on Debt/Equity, Altman Z-Score, Price/Book.

Bull 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.

Bear Case : CLFD

The primary concerns for CLFD are Market Cap, P/E Ratio, Return on Equity. A P/E of 193.4x leaves little room for execution misses.

Bear Case : LITE

The primary concerns for LITE are Debt/Equity, P/E Ratio, Price/Book. A P/E of 181.8x leaves little room for execution misses.

Key Dynamics to Monitor

CLFD profiles as a turnaround stock while LITE is a growth play — different risk/reward profiles.

CLFD carries more volatility with a beta of 2.09 — 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 23/100), 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.

Clearfield Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Clearfield, Inc. manufactures, markets, and sells standard and custom passive connectivity products to OEM, enterprise and fiber-to-facility markets in the United States and internationally. The company is headquartered in Minneapolis, Minnesota.

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.

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