Lumentum Holdings Inc (LITE)vsOracle Corporation (ORCL)
LITE
Lumentum Holdings Inc
$869.54
-5.22%
TECHNOLOGY · Cap: $101.67B
ORCL
Oracle Corporation
$128.23
-4.64%
TECHNOLOGY · Cap: $438.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Oracle Corporation generates 2281% more annual revenue ($71.78B vs $3.01B). ORCL leads profitability with a 26.4% profit margin vs -230.1%. LITE appears more attractively valued with a PEG of 0.63. ORCL earns a higher WallStSmart Score of 78/100 (B+).
LITE
Buy57
out of 100
Grade: C
ORCL
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LITE.
Margin of Safety
-28.4%
Fair Value
$106.96
Current Price
$128.23
$21.27 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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%
Mega-cap, among the largest globally
Strong operational efficiency at 35.6%
Earnings expanding 54.5% YoY
Every $100 of equity generates 28 in profit
Keeps 26 of every $100 in revenue as profit
Growing faster than its price suggests
Areas to Watch
Trading at 16.6x book value
ROE of -149.3% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : ORCL
The strongest argument for ORCL centers on Market Cap, Operating Margin, EPS Growth. Profitability is solid with margins at 26.4% and operating margin at 35.6%. Revenue growth of 29.6% demonstrates continued momentum.
Bear Case : LITE
The primary concerns for LITE are Price/Book, Return on Equity, Altman Z-Score.
Bear Case : ORCL
The primary concerns for ORCL are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.34 is elevated, increasing financial risk.
Key Dynamics to Monitor
LITE profiles as a hypergrowth stock while ORCL is a growth play — different risk/reward profiles.
ORCL carries more volatility with a beta of 1.77 — expect wider price swings.
LITE is growing revenue faster at 109.3% — sustainability is the question.
LITE generates stronger free cash flow (196M), providing more financial flexibility.
Bottom Line
ORCL scores higher overall (78/100 vs 57/100), backed by strong 26.4% margins and 29.6% 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.
Oracle Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Oracle is an American multinational computer technology corporation headquartered in Austin, Texas. The company was formerly headquartered in Redwood Shores, California until December 2020 when it moved its headquarters to Texas. The company sells database software and technology, cloud engineered systems, and enterprise software products, particularly its own brands of database management systems.
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