Lumentum Holdings Inc (LITE)vsPalo Alto Networks Inc (PANW)
LITE
Lumentum Holdings Inc
$849.47
-2.73%
TECHNOLOGY · Cap: $66.09B
PANW
Palo Alto Networks Inc
$366.34
-1.00%
TECHNOLOGY · Cap: $298.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 326% more annual revenue ($10.61B vs $2.49B). LITE leads profitability with a 17.7% profit margin vs 8.0%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 74/100 (B).
LITE
Strong Buy74
out of 100
Grade: B
PANW
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LITE.
Margin of Safety
+22.4%
Fair Value
$467.52
Current Price
$366.34
$101.18 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 90.1% year-over-year
Earnings expanding 71.1% YoY
Large-cap with strong market position
Growing faster than its price suggests
Strong operational efficiency at 21.8%
Mega-cap, among the largest globally
Revenue surging 31.1% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 20.5x book value
Distress zone — elevated risk
Trading at 10.8x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 31.1% demonstrates continued momentum.
Bear Case : LITE
The primary concerns for LITE are Debt/Equity, P/E Ratio, Price/Book. A P/E of 137.0x leaves little room for execution misses.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 318.6x leaves little room for execution misses.
Key Dynamics to Monitor
LITE profiles as a growth stock while PANW is a hypergrowth play — different risk/reward profiles.
LITE carries more volatility with a beta of 1.51 — expect wider price swings.
LITE is growing revenue faster at 90.1% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
LITE scores higher overall (74/100 vs 47/100), backed by strong 17.7% margins and 90.1% revenue growth. PANW offers better value entry with a 22.4% margin of safety. 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.
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.
Palo Alto Networks Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Palo Alto Networks, Inc. provides cybersecurity platform solutions globally. The company is headquartered in Santa Clara, California.
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