Digi International Inc (DGII)vsLumentum Holdings Inc (LITE)
DGII
Digi International Inc
$72.74
+0.85%
TECHNOLOGY · Cap: $2.74B
LITE
Lumentum Holdings Inc
$954.49
-0.92%
TECHNOLOGY · Cap: $83.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Lumentum Holdings Inc generates 495% more annual revenue ($3.01B vs $506.21M). DGII leads profitability with a 9.6% profit margin vs -230.1%. LITE appears more attractively valued with a PEG of 0.63. DGII earns a higher WallStSmart Score of 64/100 (C+).
DGII
Buy64
out of 100
Grade: C+
LITE
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.6%
Fair Value
$29.44
Current Price
$72.74
$43.30 premium
Intrinsic value data unavailable for LITE.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Growing faster than its price suggests
Revenue surging 29.0% year-over-year
Earnings expanding 48.1% YoY
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
ROE of 6.5% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 18.2x book value
ROE of -149.3% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : DGII
The strongest argument for DGII centers on Debt/Equity, PEG Ratio, Revenue Growth. Revenue growth of 29.0% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.
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 : DGII
The primary concerns for DGII are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 57.3x leaves little room for execution misses.
Bear Case : LITE
The primary concerns for LITE are Price/Book, Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
DGII 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.
LITE generates stronger free cash flow (287M), providing more financial flexibility.
Bottom Line
DGII scores higher overall (64/100 vs 57/100) and 29.0% revenue growth. Both earn "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.
Digi International Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Digi International Inc. provides mission-critical and enterprise Internet of Things (IoT) products, services and solutions in the United States and internationally. The company is headquartered in Hopkins, Minnesota.
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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