Extreme Networks Inc (EXTR)vsLumentum Holdings Inc (LITE)
EXTR
Extreme Networks Inc
$22.20
+4.82%
TECHNOLOGY · Cap: $2.80B
LITE
Lumentum Holdings Inc
$927.03
-0.93%
TECHNOLOGY · Cap: $83.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Lumentum Holdings Inc generates 135% more annual revenue ($3.01B vs $1.28B). EXTR leads profitability with a 3.3% profit margin vs -230.1%. LITE appears more attractively valued with a PEG of 0.63. EXTR earns a higher WallStSmart Score of 63/100 (C+).
EXTR
Buy63
out of 100
Grade: C+
LITE
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-64.4%
Fair Value
$12.88
Current Price
$22.20
$9.32 premium
Intrinsic value data unavailable for LITE.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 206.4% YoY
Every $100 of equity generates 22 in profit
Growing faster than its price suggests
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
3.3% margin — thin
Premium valuation, high expectations priced in
Trading at 32.6x book value
Distress zone — elevated risk
Trading at 17.7x book value
ROE of -149.3% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : EXTR
The strongest argument for EXTR centers on EPS Growth, Return on Equity, PEG Ratio. Revenue growth of 10.3% demonstrates continued momentum. PEG of 0.80 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 : EXTR
The primary concerns for EXTR are Profit Margin, P/E Ratio, Price/Book. A P/E of 69.2x leaves little room for execution misses. Debt-to-equity of 2.20 is elevated, increasing financial risk.
Bear Case : LITE
The primary concerns for LITE are Price/Book, Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
EXTR profiles as a value stock while LITE is a hypergrowth play — different risk/reward profiles.
EXTR carries more volatility with a beta of 1.76 — 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
EXTR scores higher overall (63/100 vs 57/100) and 10.3% 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.
Extreme Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Extreme Networks, Inc. provides software-driven networking solutions for businesses, data centers, and service provider customers globally. The company is headquartered in San Jose, California.
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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