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LITE vs TER

LITE
Lumentum Holdings Inc.
BEARISH
Price
$897.30
Market Cap
$64.07B
Sector
Technology
AI Confidence
90%
TER
Teradyne, Inc.
BEARISH
Price
$375.21
Market Cap
$58.74B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
LITE
263.14
TER
108.76
Forward P/E
LITE
56.65
TER
45.28
P/B Ratio
LITE
75.68
TER
20.95
P/S Ratio
LITE
30.43
TER
18.41
EV/EBITDA
LITE
247.42
TER
72.29

Profitability

Gross Margin
LITE
37.12%
TER
58.22%
Operating Margin
LITE
10.73%
TER
30.35%
Profit Margin
LITE
11.95%
TER
17.37%
ROE
LITE
29.28%
TER
19.73%
ROA
LITE
0.29%
TER
10.83%

Growth

Revenue Growth
LITE
65.5%
TER
43.9%
Earnings Growth
LITE
--
TER
81.4%

Financial Health

Debt/Equity
LITE
3.92
TER
0.1
Current Ratio
LITE
0.61
TER
1.75
Quick Ratio
LITE
0.41
TER
0.99

Dividends

Dividend Yield
LITE
--
TER
0.14%
Payout Ratio
LITE
0.0%
TER
13.83%

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)
TER BEARISH

Teradyne exhibits a stable financial health profile with a Piotroski F-Score of 4/9 and exceptionally low leverage (Debt/Equity 0.10). However, the stock is severely overvalued, trading at $375.21—nearly 3.7x its growth-based intrinsic value ($101.78) and 10x its Graham Number ($37.29). While the company is an earnings-beating machine with explosive YoY growth (81.4% EPS), the current valuation is disconnected from fundamentals, further evidenced by a bearish technical trend (10/100) and consistent insider selling.

Strengths
Exceptional earnings track record with consistent beats over 25 quarters
Explosive short-term growth (Revenue +43.9%, Earnings +81.4% YoY)
Very strong balance sheet with minimal debt (Debt/Equity 0.10)
Risks
Extreme valuation risk with a P/E of 108.76 and P/B of 20.95
Significant disconnect between current price ($375.21) and analyst target ($329.59)
Bearish insider sentiment with 9 sell transactions and 0 buys

Compare Another Pair

LITE vs TER: Head-to-Head Comparison

This page compares Lumentum Holdings Inc. (LITE) and Teradyne, Inc. (TER) 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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