Cisco Systems Inc (CSCO)vsLumentum Holdings Inc (LITE)
CSCO
Cisco Systems Inc
$109.51
-0.66%
TECHNOLOGY · Cap: $442.08B
LITE
Lumentum Holdings Inc
$930.91
+4.17%
TECHNOLOGY · Cap: $83.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Cisco Systems Inc generates 2001% more annual revenue ($63.33B vs $3.01B). CSCO leads profitability with a 20.9% profit margin vs -230.1%. LITE appears more attractively valued with a PEG of 0.63. CSCO earns a higher WallStSmart Score of 75/100 (B).
CSCO
Strong Buy75
out of 100
Grade: B
LITE
Buy57
out of 100
Grade: C
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Earnings expanding 52.1% YoY
Every $100 of equity generates 26 in profit
Keeps 21 of every $100 in revenue as profit
Strong operational efficiency at 27.7%
17.6% revenue growth
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%
Areas to Watch
Premium valuation, high expectations priced in
Trading at 8.6x book value
Distress zone — elevated risk
Trading at 17.8x book value
ROE of -149.3% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : CSCO
The strongest argument for CSCO centers on Market Cap, EPS Growth, Return on Equity. Profitability is solid with margins at 20.9% and operating margin at 27.7%. Revenue growth of 17.6% demonstrates continued momentum.
Bull 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.
Bear Case : CSCO
The primary concerns for CSCO are P/E Ratio, Price/Book, Altman Z-Score.
Bear Case : LITE
The primary concerns for LITE are Price/Book, Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
CSCO profiles as a growth stock while LITE is a hypergrowth 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.
CSCO generates stronger free cash flow (5.0B), providing more financial flexibility.
Bottom Line
CSCO scores higher overall (75/100 vs 57/100), backed by strong 20.9% margins and 17.6% revenue growth. Both earn "Strong 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.
Cisco Systems Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Cisco Systems, Inc. is an American multinational technology conglomerate headquartered in San Jose, California, in the center of Silicon Valley. Cisco develops, manufactures and sells networking hardware, software, telecommunications equipment and other high-technology services and products. Through its numerous acquired subsidiaries, such as OpenDNS, Webex, Jabber and Jasper, Cisco specializes in specific tech markets, such as the Internet of Things (IoT), domain security and energy management. On January 25, 2021, Cisco reincorporated in Delaware.
Visit Website →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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