Ciena Corporation (CIEN) vs Lumentum Holdings Inc. (LITE)

Ciena Corporation and Lumentum Holdings Inc. are both Communication Equipment companies. Lumentum Holdings Inc. is the larger, with a market value of $84.7B against $51.7B — 1.6× the size. Lumentum Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Ciena Corporation trades at 77.3×. Lumentum Holdings Inc. grew revenue faster over the last twelve months: 83.2% against 32.6%. Ciena Corporation has the higher net margin (10.9% vs −230.1%) and the higher return on invested capital (12.6% vs 9.26%). Across the 21 metrics below, Ciena Corporation leads on 14 and Lumentum Holdings Inc. on 7.

Valuation

Metric CIEN LITE Communication Equipment median
P/E 77.25 n/m 33.61
P/S 8.42 23.31 2.16
P/B 16.59 15.13 2.40
Price to free cash flow 62.26 205.10 25.02
EV/EBITDA 56.14 86.91 13.78
EV/Sales 8.52 22.94 2.27
Earnings yield 1.29% (8.66%) (0.65%)
Free cash flow yield 1.61% 0.49% 1.61%

Profitability

Metric CIEN LITE Communication Equipment median
Gross margin 44.07% 41.67% 39.47%
Operating margin 12.27% 17.41% 2.39%
Net margin 10.87% (230.10%) (0.74%)
Free cash flow margin 13.53% 11.36% 1.39%
Return on equity 22.40% (240.03%) (1.91%)
Return on assets 9.52% (120.34%) (0.20%)
Return on invested capital 12.63% 9.26% 0.72%

Growth

Metric CIEN LITE Communication Equipment median
Revenue growth (TTM) 32.57% 83.22% 11.48%
EPS growth (last fiscal year) 46.55% (25,224.32%) —
Revenue growth, 5-year CAGR 6.19% 11.58% 4.92%
Net income growth, 5-year CAGR (19.34%) 0.00% 0.00%

Health

Metric CIEN LITE Communication Equipment median
Debt to equity 1.06 0.35 0.06
Current ratio 3.80 1.68 2.01
Net debt to EBITDA 0.67 (1.38) 0.67

Dividend

Metric CIEN LITE Communication Equipment median
Dividend yield — — 2.63%
Payout ratio 0.00 0.00 0.00

Size

Metric CIEN LITE Communication Equipment median
Market cap 51.73b 84.66b 563.45m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack