Telefonaktiebolaget LM Ericsson B ADR (ERIC)vsLumentum Holdings Inc (LITE)
ERIC
Telefonaktiebolaget LM Ericsson B ADR
$11.47
-3.69%
TECHNOLOGY · Cap: $40.27B
LITE
Lumentum Holdings Inc
$700.81
+7.89%
TECHNOLOGY · Cap: $44.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Telefonaktiebolaget LM Ericsson B ADR generates 11315% more annual revenue ($240.31B vs $2.11B). ERIC leads profitability with a 12.0% profit margin vs 11.9%. LITE appears more attractively valued with a PEG of 0.97. LITE earns a higher WallStSmart Score of 69/100 (B-).
ERIC
Buy52
out of 100
Grade: C-
LITE
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.8%
Fair Value
$42.59
Current Price
$11.47
$31.12 discount
Margin of Safety
-256.6%
Fair Value
$160.99
Current Price
$700.81
$539.82 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 79.2% YoY
Generating 14.9B in free cash flow
Every $100 of equity generates 28 in profit
Attractively priced relative to earnings
Revenue surging 65.5% year-over-year
Earnings expanding 71.1% YoY
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 5.0%
Premium valuation, high expectations priced in
Trading at 59.1x book value
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ERIC
The strongest argument for ERIC centers on Price/Book, EPS Growth, Free Cash Flow.
Bull Case : LITE
The strongest argument for LITE centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 65.5% demonstrates continued momentum. PEG of 0.97 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 181.6x 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 1.41 — expect wider price swings.
LITE is growing revenue faster at 65.5% — sustainability is the question.
ERIC generates stronger free cash flow (14.9B), providing more financial flexibility.
Bottom Line
LITE scores higher overall (69/100 vs 52/100) and 65.5% revenue growth. ERIC offers better value entry with a 73.8% margin of safety. 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.
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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