Lumentum Holdings Inc (LITE)vsPalo Alto Networks Inc (PANW)
LITE
Lumentum Holdings Inc
$930.91
+4.17%
TECHNOLOGY · Cap: $83.93B
PANW
Palo Alto Networks Inc
$363.58
-3.06%
TECHNOLOGY · Cap: $270.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 281% more annual revenue ($11.48B vs $3.01B). PANW leads profitability with a 2.7% profit margin vs -230.1%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 57/100 (C).
LITE
Buy57
out of 100
Grade: C
PANW
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LITE.
Margin of Safety
+27.4%
Fair Value
$500.75
Current Price
$363.58
$137.17 discount
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
Revenue surging 34.4% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Generating 1.3B in free cash flow
Areas to Watch
Trading at 17.8x book value
ROE of -149.3% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Expensive relative to growth rate
Trading at 10.8x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
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 : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.4% demonstrates continued momentum.
Bear Case : LITE
The primary concerns for LITE are Price/Book, Return on Equity, Altman Z-Score.
Bear Case : PANW
The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 295.2x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
LITE carries more volatility with a beta of 1.54 — expect wider price swings.
LITE is growing revenue faster at 109.3% — sustainability is the question.
PANW generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LITE scores higher overall (57/100 vs 51/100) and 109.3% revenue growth. PANW offers better value entry with a 27.4% margin of safety. Both earn "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.
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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