Lumentum Holdings Inc (LITE)vsSeagate Technology PLC (STX)
LITE
Lumentum Holdings Inc
$706.35
-8.52%
TECHNOLOGY · Cap: $50.43B
STX
Seagate Technology PLC
$411.23
-5.38%
TECHNOLOGY · Cap: $97.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Seagate Technology PLC generates 378% more annual revenue ($10.06B vs $2.11B). STX leads profitability with a 19.6% profit margin vs 11.9%. STX appears more attractively valued with a PEG of 0.67. STX earns a higher WallStSmart Score of 72/100 (B).
LITE
Strong Buy69
out of 100
Grade: B-
STX
Strong Buy72
out of 100
Grade: B
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
+1.9%
Fair Value
$415.12
Current Price
$411.23
$3.89 discount
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 67.7% YoY
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Growing faster than its price suggests
Strong operational efficiency at 29.9%
Revenue surging 21.5% year-over-year
Areas to Watch
Premium valuation, high expectations priced in
Trading at 59.6x book value
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 195.8x book value
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 : STX
The strongest argument for STX centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 19.6% and operating margin at 29.9%. Revenue growth of 21.5% demonstrates continued momentum.
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 : STX
The primary concerns for STX are P/E Ratio, Price/Book. A P/E of 49.0x leaves little room for execution misses.
Key Dynamics to Monitor
STX carries more volatility with a beta of 1.65 — expect wider price swings.
LITE is growing revenue faster at 65.5% — sustainability is the question.
STX generates stronger free cash flow (618M), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
STX scores higher overall (72/100 vs 69/100), backed by strong 19.6% margins and 21.5% revenue growth. Both earn "Strong Buy" and "Strong 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.
Seagate Technology PLC
TECHNOLOGY · COMPUTER HARDWARE · USA
Seagate Technology Holdings plc, an Irish public limited company (commonly referred to as Seagate) is an American data storage company.
Compare with Other COMMUNICATION EQUIPMENT Stocks
Want to dig deeper into these stocks?