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LITE vs MSFT

LITE
Lumentum Holdings Inc.
BEARISH
Price
$897.30
Market Cap
$64.07B
Sector
Technology
AI Confidence
90%
MSFT
Microsoft Corporation
BULLISH
Price
$374.33
Market Cap
$2.78T
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
LITE
263.14
MSFT
23.42
Forward P/E
LITE
56.65
MSFT
19.86
P/B Ratio
LITE
75.68
MSFT
7.11
P/S Ratio
LITE
30.43
MSFT
9.11
EV/EBITDA
LITE
247.42
MSFT
16.05

Profitability

Gross Margin
LITE
37.12%
MSFT
68.59%
Operating Margin
LITE
10.73%
MSFT
47.09%
Profit Margin
LITE
11.95%
MSFT
39.04%
ROE
LITE
29.28%
MSFT
34.39%
ROA
LITE
0.29%
MSFT
14.86%

Growth

Revenue Growth
LITE
65.5%
MSFT
16.7%
Earnings Growth
LITE
--
MSFT
59.8%

Financial Health

Debt/Equity
LITE
3.92
MSFT
0.32
Current Ratio
LITE
0.61
MSFT
1.39
Quick Ratio
LITE
0.41
MSFT
1.24

Dividends

Dividend Yield
LITE
--
MSFT
0.97%
Payout Ratio
LITE
0.0%
MSFT
21.28%

AI Verdict

LITE BEARISH

LITE exhibits a dangerous divergence between explosive growth and fundamental valuation. While the Piotroski F-Score of 4/9 indicates stable health, the company's valuation is completely detached from reality, trading at $897.30 against a Graham Number of $30.16 and an Intrinsic Value of $23.87. Severe liquidity risks are evident with a Current Ratio of 0.61 and a high Debt/Equity ratio of 3.92. Despite massive YoY EPS growth, the P/E of 263.14 and aggressive insider selling suggest a parabolic bubble nearing a correction.

Strengths
Explosive Revenue Growth (65.50% YoY)
Massive Year-over-Year EPS Growth (+297.6%)
Strong ROE of 29.28%
Risks
Extreme Valuation (P/E 263.14, P/B 75.68)
Poor Liquidity (Current Ratio 0.61, Quick Ratio 0.41)
High Leverage (Debt/Equity 3.92)
MSFT BULLISH

Microsoft exhibits strong fundamental health with a Piotroski F-Score of 7/9, indicating robust financial stability. While the stock is currently experiencing a severe technical downtrend (0/100) and significant 6-month price depreciation (-28.6%), the current price of $374.33 sits well below the growth-based intrinsic value of $471.41 and the analyst target of $587.31. Exceptional earnings growth (59.8% YoY) and high operating margins (47.09%) suggest that the current price correction presents a value opportunity despite bearish insider sentiment.

Strengths
Strong financial health evidenced by a Piotroski F-Score of 7/9
Exceptional profitability with a 39.04% profit margin and 47.09% operating margin
Robust earnings growth (59.8% YoY) and consistent history of beating estimates
Risks
Severe short-term technical bearishness (0/100 trend score)
Bearish insider activity with $32.64M in net sales over the last 6 months
High Price-to-Book ratio (7.11) indicating a premium over book value

Compare Another Pair

LITE vs MSFT: Head-to-Head Comparison

This page compares Lumentum Holdings Inc. (LITE) and Microsoft Corporation (MSFT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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