Lumentum Holdings Inc (LITE)vsPure Storage Inc (PSTG)
LITE
Lumentum Holdings Inc
$706.35
-8.52%
TECHNOLOGY · Cap: $50.43B
PSTG
Pure Storage Inc
$62.63
-4.31%
TECHNOLOGY · Cap: $20.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Pure Storage Inc generates 74% more annual revenue ($3.66B vs $2.11B). LITE leads profitability with a 11.9% profit margin vs 5.1%. 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-
PSTG
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-254.5%
Fair Value
$161.93
Current Price
$706.35
$544.42 premium
Margin of Safety
-195.4%
Fair Value
$25.74
Current Price
$62.63
$36.89 premium
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 140.6% YoY
Revenue surging 20.4% year-over-year
Areas to Watch
Premium valuation, high expectations priced in
Trading at 59.6x book value
Distress zone — elevated risk
Trading at 14.3x book value
5.1% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
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 : PSTG
The strongest argument for PSTG centers on EPS Growth, Revenue Growth. Revenue growth of 20.4% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bear Case : LITE
The primary concerns for LITE are P/E Ratio, Price/Book, Altman Z-Score. A P/E of 204.2x leaves little room for execution misses.
Bear Case : PSTG
The primary concerns for PSTG are Price/Book, Profit Margin, P/E Ratio. A P/E of 113.9x leaves little room for execution misses.
Key Dynamics to Monitor
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.
PSTG generates stronger free cash flow (201M), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LITE scores higher overall (69/100 vs 59/100) 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.
Pure Storage Inc
TECHNOLOGY · COMPUTER HARDWARE · USA
Pure Storage, Inc. provides data storage technology and solutions in the United States and internationally. The company is headquartered in Mountain View, California.
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