Digi International Inc (DGII)vsLumentum Holdings Inc (LITE)
DGII
Digi International Inc
$65.78
+6.05%
TECHNOLOGY · Cap: $2.21B
LITE
Lumentum Holdings Inc
$903.80
+1.26%
TECHNOLOGY · Cap: $69.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Lumentum Holdings Inc generates 454% more annual revenue ($2.49B vs $448.82M). LITE leads profitability with a 17.7% profit margin vs 9.4%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 74/100 (B).
DGII
Buy56
out of 100
Grade: C
LITE
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-40.5%
Fair Value
$33.03
Current Price
$65.78
$32.75 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
17.9% revenue growth
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%
Areas to Watch
ROE of 6.8% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 76.2x book value
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : DGII
The strongest argument for DGII centers on Debt/Equity, PEG Ratio, Revenue Growth. Revenue growth of 17.9% demonstrates continued momentum. PEG of 0.98 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. Profitability is solid with margins at 17.7% and operating margin at 21.8%. Revenue growth of 90.1% demonstrates continued momentum.
Bear Case : DGII
The primary concerns for DGII are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 52.5x leaves little room for execution misses.
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.
Key Dynamics to Monitor
LITE carries more volatility with a beta of 1.53 — expect wider price swings.
LITE is growing revenue faster at 90.1% — sustainability is the question.
LITE generates stronger free cash flow (204M), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LITE scores higher overall (74/100 vs 56/100), backed by strong 17.7% margins and 90.1% 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.
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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