Lumentum Holdings Inc (LITE)vsMagnite Inc (MGNI)
LITE
Lumentum Holdings Inc
$777.17
-3.09%
TECHNOLOGY · Cap: $57.26B
MGNI
Magnite Inc
$12.11
+0.67%
COMMUNICATION SERVICES · Cap: $1.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Lumentum Holdings Inc generates 195% more annual revenue ($2.11B vs $713.95M). MGNI leads profitability with a 20.3% profit margin vs 11.9%. MGNI trades at a lower P/E of 12.8x. LITE earns a higher WallStSmart Score of 69/100 (B-).
LITE
Strong Buy69
out of 100
Grade: B-
MGNI
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-255.6%
Fair Value
$161.46
Current Price
$777.17
$615.71 premium
Margin of Safety
+73.5%
Fair Value
$44.46
Current Price
$12.11
$32.35 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Earnings expanding 230.0% YoY
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.4%
Areas to Watch
Premium valuation, high expectations priced in
Trading at 65.5x book value
Distress zone — elevated risk
Smaller company, higher risk/reward
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : MGNI
The strongest argument for MGNI centers on EPS Growth, Profit Margin, P/E Ratio. Profitability is solid with margins at 20.3% and operating margin at 25.4%.
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.
Bear Case : MGNI
The primary concerns for MGNI are Market Cap.
Key Dynamics to Monitor
LITE profiles as a growth stock while MGNI is a mature play — different risk/reward profiles.
MGNI carries more volatility with a beta of 2.40 — expect wider price swings.
LITE is growing revenue faster at 65.5% — sustainability is the question.
MGNI generates stronger free cash flow (103M), providing more financial flexibility.
Bottom Line
LITE scores higher overall (69/100 vs 68/100) and 65.5% revenue growth. MGNI offers better value entry with a 73.5% margin of safety. Both earn "Strong Buy" and "Strong 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.
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.
Magnite Inc
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
Magnite, Inc. operates an independent sales advertising platform in the United States and internationally. The company is headquartered in Los Angeles, California.
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