Lumentum Holdings Inc (LITE)vsVisa Inc. Class A (V)
LITE
Lumentum Holdings Inc
$777.17
-3.09%
TECHNOLOGY · Cap: $57.26B
V
Visa Inc. Class A
$304.91
+0.20%
FINANCIAL SERVICES · Cap: $585.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Visa Inc. Class A generates 1866% more annual revenue ($41.39B vs $2.11B). V leads profitability with a 50.2% profit margin vs 11.9%. 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-
V
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-255.6%
Fair Value
$161.46
Current Price
$777.17
$615.71 premium
Margin of Safety
+17.4%
Fair Value
$369.26
Current Price
$304.91
$64.35 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
Mega-cap, among the largest globally
Every $100 of equity generates 54 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 68.3%
Generating 6.4B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Trading at 65.5x book value
Distress zone — elevated risk
Expensive relative to growth rate
Moderate valuation
Trading at 15.2x book value
Grey zone — moderate 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 : V
The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 50.2% and operating margin at 68.3%. Revenue growth of 14.6% demonstrates continued momentum.
Bear Case : LITE
The primary concerns for LITE are P/E Ratio, Price/Book, Altman Z-Score. A P/E of 232.5x leaves little room for execution misses.
Bear Case : V
The primary concerns for V are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
LITE profiles as a growth stock while V is a mature play — different risk/reward profiles.
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.
V generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
LITE scores higher overall (69/100 vs 68/100) and 65.5% revenue growth. V offers better value entry with a 17.4% margin of safety. 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.
Visa Inc. Class A
FINANCIAL SERVICES · CREDIT SERVICES · USA
Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.
Visit Website →Compare with Other COMMUNICATION EQUIPMENT Stocks
Want to dig deeper into these stocks?