Ericsson (ERIC) vs Lumentum Holdings Inc. (LITE)
Ericsson and Lumentum Holdings Inc. are both Communication Equipment companies. Lumentum Holdings Inc. is the larger, with a market value of $84.7B against $29.4B — 2.9× the size. Lumentum Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Ericsson trades at 12.2×. Lumentum Holdings Inc. grew revenue faster over the last twelve months: 83.2% against 2.26%. Ericsson has the higher net margin (10.6% vs −230.1%) and the higher return on invested capital (25.1% vs 9.26%). Across the 21 metrics below, Ericsson leads on 16 and Lumentum Holdings Inc. on 5.
Valuation
Profitability
| Metric | ERIC | LITE | Communication Equipment median |
|---|---|---|---|
| Gross margin | 46.99% | 41.67% | 39.47% |
| Operating margin | 14.52% | 17.41% | 2.39% |
| Net margin | 10.61% | (230.10%) | (0.74%) |
| Free cash flow margin | 12.72% | 11.36% | 1.39% |
| Return on equity | 0.00% | (240.03%) | (1.91%) |
| Return on assets | 8.76% | (120.34%) | (0.20%) |
| Return on invested capital | 25.09% | 9.26% | 0.72% |
Growth
Health
Dividend
Size
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