Hewlett Packard Enterprise Co (HPE)vsLumentum Holdings Inc (LITE)
HPE
Hewlett Packard Enterprise Co
$34.13
+6.42%
TECHNOLOGY · Cap: $40.96B
LITE
Lumentum Holdings Inc
$1,001.81
-2.77%
TECHNOLOGY · Cap: $78.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Hewlett Packard Enterprise Co generates 1336% more annual revenue ($35.74B vs $2.49B). LITE leads profitability with a 17.7% profit margin vs -0.3%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 74/100 (B).
HPE
Buy52
out of 100
Grade: C-
LITE
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+80.9%
Fair Value
$124.72
Current Price
$34.13
$90.59 discount
Intrinsic value data unavailable for LITE.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
18.4% 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
Weak financial health signals
ROE of -0.5% — below average capital efficiency
Earnings declined 30.3%
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 84.5x book value
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : HPE
The strongest argument for HPE centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 18.4% demonstrates continued momentum. PEG of 0.85 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 : HPE
The primary concerns for HPE are Piotroski F-Score, Return on Equity, EPS Growth.
Bear Case : LITE
The primary concerns for LITE are P/E Ratio, Price/Book, Altman Z-Score. A P/E of 177.1x 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.
HPE generates stronger free cash flow (609M), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LITE scores higher overall (74/100 vs 52/100), backed by strong 17.7% margins and 90.1% revenue growth. HPE offers better value entry with a 80.9% 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.
Hewlett Packard Enterprise Co
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
The Hewlett Packard Enterprise Company (HPE) is an American multinational enterprise information technology company based in Houston, Texas, United States.
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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