Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsLumentum Holdings Inc (LITE)
ERIC
Telefonaktiebolaget LM Ericsson B ADR
$11.76
-0.42%
TECHNOLOGY · Cap: $39.17B
LITE
Lumentum Holdings Inc
$949.93
+5.28%
TECHNOLOGY · Cap: $64.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Telefonaktiebolaget LM Ericsson B ADR generates 11315% more annual revenue ($240.31B vs $2.11B). LITE leads profitability with a 11.9% profit margin vs 10.9%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 69/100 (B-).
ERIC
Hold42
out of 100
Grade: D
LITE
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+86.3%
Fair Value
$81.18
Current Price
$11.76
$69.42 discount
Intrinsic value data unavailable for LITE.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 27 in profit
Attractively priced relative to earnings
Generating 7.0B in free cash flow
Revenue surging 65.5% year-over-year
Earnings expanding 71.1% YoY
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Growing faster than its price suggests
Areas to Watch
Operating margin of 0.0%
Expensive relative to growth rate
Revenue declined 10.3%
Earnings declined 78.5%
Premium valuation, high expectations priced in
Trading at 80.1x book value
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ERIC
The strongest argument for ERIC centers on Price/Book, Return on Equity, P/E Ratio.
Bull Case : LITE
The strongest argument for LITE centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 65.5% demonstrates continued momentum. PEG of 0.63 suggests the stock is reasonably priced for its growth.
Bear Case : ERIC
The primary concerns for ERIC are Operating Margin, PEG Ratio, Revenue Growth.
Bear Case : LITE
The primary concerns for LITE are P/E Ratio, Price/Book, Altman Z-Score. A P/E of 263.1x leaves little room for execution misses.
Key Dynamics to Monitor
ERIC profiles as a declining stock while LITE is a growth play — different risk/reward profiles.
LITE carries more volatility with a beta of 1.39 — expect wider price swings.
LITE is growing revenue faster at 65.5% — sustainability is the question.
ERIC generates stronger free cash flow (7.0B), providing more financial flexibility.
Bottom Line
LITE scores higher overall (69/100 vs 42/100) and 65.5% revenue growth. ERIC offers better value entry with a 86.3% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Telefonaktiebolaget LM Ericsson B ADR
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Telefonaktiebolaget LM Ericsson (publ), provides communications infrastructure, services and software solutions for telecommunications and other sectors. The company is headquartered in Stockholm, Sweden.
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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