WallStSmart

Lumentum Holdings Inc (LITE)vsUbiquiti Networks Inc (UI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ubiquiti Networks Inc generates 24% more annual revenue ($3.10B vs $2.49B). UI leads profitability with a 30.4% profit margin vs 17.7%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 74/100 (B).

LITE

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 6.5Value: 5.0Quality: 4.0
Piotroski: 4/9Altman Z: 0.58

UI

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 10.0Value: 4.0Quality: 9.0
Piotroski: 5/9Altman Z: 5.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for LITE.

UISignificantly Overvalued (-44.1%)

Margin of Safety

-44.1%

Fair Value

$371.06

Current Price

$523.05

$151.99 premium

UndervaluedFair: $371.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LITE5 strengths · Avg: 9.0/10
Revenue GrowthGrowth
90.1%10/10

Revenue surging 90.1% year-over-year

EPS GrowthGrowth
71.1%10/10

Earnings expanding 71.1% YoY

Market CapQuality
$64.55B9/10

Large-cap with strong market position

PEG RatioValuation
0.638/10

Growing faster than its price suggests

Operating MarginProfitability
21.8%8/10

Strong operational efficiency at 21.8%

UI6 strengths · Avg: 9.7/10
Return on EquityProfitability
78.4%10/10

Every $100 of equity generates 78 in profit

Profit MarginProfitability
30.4%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
36.9%10/10

Strong operational efficiency at 36.9%

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.1410/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
18.7%8/10

18.7% revenue growth

Areas to Watch

LITE4 concerns · Avg: 2.8/10
Price/BookValuation
15.7x4/10

Trading at 15.7x book value

Debt/EquityHealth
1.113/10

Elevated debt levels

P/E RatioValuation
147.1x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.582/10

Distress zone — elevated risk

UI2 concerns · Avg: 3.0/10
P/E RatioValuation
34.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
26.3x2/10

Trading at 26.3x book value

Comparative Analysis Report

WallStSmart Research

Bull 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 : UI

The strongest argument for UI centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 30.4% and operating margin at 36.9%. Revenue growth of 18.7% demonstrates continued momentum.

Bear Case : LITE

The primary concerns for LITE are Price/Book, Debt/Equity, P/E Ratio. A P/E of 147.1x leaves little room for execution misses.

Bear Case : UI

The primary concerns for UI are P/E Ratio, Price/Book.

Key Dynamics to Monitor

LITE carries more volatility with a beta of 1.48 — expect wider price swings.

LITE is growing revenue faster at 90.1% — sustainability is the question.

UI generates stronger free cash flow (162M), providing more financial flexibility.

Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LITE scores higher overall (74/100 vs 65/100), backed by strong 17.7% margins and 90.1% 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.

Ubiquiti Networks Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.

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