Lumentum Holdings Inc (LITE)vsMotorola Solutions Inc (MSI)
LITE
Lumentum Holdings Inc
$700.81
+7.89%
TECHNOLOGY · Cap: $44.61B
MSI
Motorola Solutions Inc
$467.28
-0.39%
TECHNOLOGY · Cap: $78.13B
Smart Verdict
WallStSmart Research — data-driven comparison
Motorola Solutions Inc generates 455% more annual revenue ($11.68B vs $2.11B). MSI leads profitability with a 18.4% 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-).
LITE
Strong Buy69
out of 100
Grade: B-
MSI
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-256.6%
Fair Value
$160.99
Current Price
$700.81
$539.82 premium
Margin of Safety
-60.5%
Fair Value
$262.35
Current Price
$467.28
$204.93 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Every $100 of equity generates 104 in profit
Large-cap with strong market position
Strong operational efficiency at 27.8%
Generating 1.1B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Trading at 59.1x book value
Distress zone — elevated risk
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Trading at 32.1x book value
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : MSI
The strongest argument for MSI centers on Return on Equity, Market Cap, Operating Margin. Profitability is solid with margins at 18.4% and operating margin at 27.8%. Revenue growth of 12.3% demonstrates continued momentum.
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.
Bear Case : MSI
The primary concerns for MSI are P/E Ratio, Piotroski F-Score, PEG Ratio. Debt-to-equity of 4.05 is elevated, increasing financial risk.
Key Dynamics to Monitor
LITE profiles as a growth stock while MSI is a mature 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.
MSI generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
LITE scores higher overall (69/100 vs 62/100) and 65.5% revenue growth. 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.
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.
Motorola Solutions Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Motorola Solutions, Inc., is an American data communications and telecommunications equipment provider that succeeded Motorola, Inc., following the spinoff of the mobile phone division into Motorola Mobility in 2011. The company is headquartered in Chicago, Illinois.
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