WallStSmart

Frequency Electronics Inc (FEIM)vsLumentum Holdings Inc (LITE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lumentum Holdings Inc generates 3004% more annual revenue ($2.11B vs $67.81M). LITE leads profitability with a 11.9% profit margin vs 10.6%. LITE appears more attractively valued with a PEG of 0.97. LITE earns a higher WallStSmart Score of 69/100 (B-).

FEIM

Hold

50

out of 100

Grade: D+

Growth: 7.3Profit: 5.0Value: 4.7Quality: 8.0
Piotroski: 5/9Altman Z: 2.49

LITE

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 6.5Value: 4.7Quality: 3.8
Piotroski: 4/9Altman Z: 0.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FEIMSignificantly Overvalued (-38.7%)

Margin of Safety

-38.7%

Fair Value

$34.16

Current Price

$46.98

$12.82 premium

UndervaluedFair: $34.16Overvalued
LITESignificantly Overvalued (-255.6%)

Margin of Safety

-255.6%

Fair Value

$161.46

Current Price

$777.17

$615.71 premium

UndervaluedFair: $161.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FEIM2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
39.4%8/10

Earnings expanding 39.4% YoY

LITE5 strengths · Avg: 9.2/10
Revenue GrowthGrowth
65.5%10/10

Revenue surging 65.5% year-over-year

EPS GrowthGrowth
71.1%10/10

Earnings expanding 71.1% YoY

Market CapQuality
$57.26B9/10

Large-cap with strong market position

Return on EquityProfitability
29.3%9/10

Every $100 of equity generates 29 in profit

PEG RatioValuation
0.978/10

Growing faster than its price suggests

Areas to Watch

FEIM4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Market CapQuality
$397.42M3/10

Smaller company, higher risk/reward

P/E RatioValuation
55.3x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-2.28M2/10

Negative free cash flow — burning cash

LITE3 concerns · Avg: 2.0/10
P/E RatioValuation
232.5x2/10

Premium valuation, high expectations priced in

Price/BookValuation
65.5x2/10

Trading at 65.5x book value

Altman Z-ScoreHealth
0.582/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : FEIM

The strongest argument for FEIM centers on Debt/Equity, EPS Growth. PEG of 1.25 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 65.5% demonstrates continued momentum. PEG of 0.97 suggests the stock is reasonably priced for its growth.

Bear Case : FEIM

The primary concerns for FEIM are Revenue Growth, Market Cap, P/E Ratio. A P/E of 55.3x 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 232.5x leaves little room for execution misses.

Key Dynamics to Monitor

FEIM profiles as a value 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.

LITE generates stronger free cash flow (51M), providing more financial flexibility.

Bottom Line

LITE scores higher overall (69/100 vs 50/100) and 65.5% revenue growth. 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.

Frequency Electronics Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Frequency Electronics, Inc. designs, develops, manufactures and sells precision frequency and time control products and components for microwave integrated circuit applications. The company is headquartered in Mitchel Field, New York.

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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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