Lumentum Holdings Inc (LITE)vsWarner Bros Discovery Inc (WBD)
LITE
Lumentum Holdings Inc
$903.80
+1.26%
TECHNOLOGY · Cap: $69.44B
WBD
Warner Bros Discovery Inc
$27.11
-0.04%
COMMUNICATION SERVICES · Cap: $67.99B
Smart Verdict
WallStSmart Research — data-driven comparison
Warner Bros Discovery Inc generates 1399% more annual revenue ($37.30B vs $2.49B). LITE leads profitability with a 17.7% profit margin vs 1.9%. LITE appears more attractively valued with a PEG of 0.63. LITE earns a higher WallStSmart Score of 74/100 (B).
LITE
Strong Buy74
out of 100
Grade: B
WBD
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LITE.
Margin of Safety
+60.6%
Fair Value
$71.08
Current Price
$27.11
$43.97 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 90.1% year-over-year
Earnings expanding 71.1% YoY
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Growing faster than its price suggests
Strong operational efficiency at 21.8%
Earnings expanding 226.7% YoY
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Trading at 76.2x book value
Distress zone — elevated risk
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
Revenue declined 5.7%
Comparative Analysis Report
WallStSmart ResearchBull 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 : WBD
The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.
Bear Case : LITE
The primary concerns for LITE are P/E Ratio, Price/Book, Altman Z-Score. A P/E of 156.3x leaves little room for execution misses.
Bear Case : WBD
The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
LITE profiles as a growth stock while WBD is a value play — different risk/reward profiles.
WBD carries more volatility with a beta of 1.57 — expect wider price swings.
LITE is growing revenue faster at 90.1% — sustainability is the question.
LITE generates stronger free cash flow (204M), providing more financial flexibility.
Bottom Line
LITE scores higher overall (74/100 vs 51/100), backed by strong 17.7% margins and 90.1% revenue growth. WBD offers better value entry with a 60.6% margin of safety. 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.
Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
Compare with Other COMMUNICATION EQUIPMENT Stocks
Want to dig deeper into these stocks?