Lumentum Holdings Inc. (LITE) vs Motorola Solutions, Inc. (MSI)

Lumentum Holdings Inc. and Motorola Solutions, Inc. are both Communication Equipment companies. Lumentum Holdings Inc. and Motorola Solutions, Inc. are of similar size ($78.8B and $75.5B). Lumentum Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Motorola Solutions, Inc. trades at 36.1×. Lumentum Holdings Inc. grew revenue faster over the last twelve months: 83.2% against 10.3%. Motorola Solutions, Inc. has the higher net margin (17.4% vs −230.1%) and the higher return on invested capital (17.3% vs 9.26%). Across the 21 metrics below, Motorola Solutions, Inc. leads on 15 and Lumentum Holdings Inc. on 6.

Valuation

Metric LITE MSI Communication Equipment median
P/E n/m 36.07 33.49
P/S 20.40 6.28 1.81
P/B 13.24 28.57 1.96
Price to free cash flow 179.50 28.67 22.91
EV/EBITDA 75.89 23.66 11.76
EV/Sales 20.03 6.96 2.02
Earnings yield (9.89%) 2.77% (0.54%)
Free cash flow yield 0.56% 3.49% 1.31%

Profitability

Metric LITE MSI Communication Equipment median
Gross margin 41.67% 51.99% 39.48%
Operating margin 17.41% 24.91% 2.39%
Net margin (230.10%) 17.44% (0.80%)
Free cash flow margin 11.36% 21.89% 1.39%
Return on equity (240.03%) 91.35% (1.91%)
Return on assets (120.34%) 11.97% (0.20%)
Return on invested capital 9.26% 17.30% 0.72%

Growth

Metric LITE MSI Communication Equipment median
Revenue growth (TTM) 83.22% 10.30% 11.48%
EPS growth (last fiscal year) (25,224.32%) 38.14% 30.93%
Revenue growth, 5-year CAGR 11.58% 9.52% 4.92%
Net income growth, 5-year CAGR 0.00% 17.81% 0.00%

Health

Metric LITE MSI Communication Equipment median
Debt to equity 0.35 3.36 0.06
Current ratio 1.68 1.10 2.01
Net debt to EBITDA (1.38) 2.34 0.90

Dividend

Metric LITE MSI Communication Equipment median
Dividend yield — 1.05% 1.04%
Payout ratio — 0.38 0.34

Size

Metric LITE MSI Communication Equipment median
Market cap 78.77b 75.53b 532.08m

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