Lumentum Holdings Inc. (LITE) vs Nokia Corporation (NOK)

Lumentum Holdings Inc. and Nokia Corporation are both Communication Equipment companies. Lumentum Holdings Inc. and Nokia Corporation are of similar size ($46.2B and $42.2B). Lumentum Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Nokia Corporation trades at 47.1×. Lumentum Holdings Inc. grew revenue faster over the last twelve months: 103.2% against 10.5%. Nokia Corporation has the higher net margin (3.70% vs −175.8%) and the lower return on invested capital (2.67% vs 13.7%). Across the 20 metrics below, Nokia Corporation leads on 11 and Lumentum Holdings Inc. on 9.

Valuation

Metric LITE NOK Communication Equipment median
P/E n/m 47.13 29.86
P/S 12.80 1.71 1.68
P/B 10.47 1.66 1.72
Price to free cash flow 118.47 3,932.63 21.71
EV/EBITDA 40.70 19.56 14.04
EV/Sales 12.64 1.58 1.76
Earnings yield (15.00%) 2.12% (0.87%)
Free cash flow yield 0.84% 0.03% 0.68%

Profitability

Metric LITE NOK Communication Equipment median
Gross margin 45.91% 43.98% 39.34%
Operating margin 23.46% 3.86% 2.43%
Net margin (175.78%) 3.70% (0.64%)
Free cash flow margin 10.80% 0.04% 0.27%
Return on equity (245.79%) 3.72% 0.00%
Return on assets (110.69%) 2.07% (0.10%)
Return on invested capital 13.74% 2.67% 1.29%

Growth

Metric LITE NOK Communication Equipment median
Revenue growth (TTM) 103.20% 10.53% 9.66%
EPS growth (last fiscal year) (25,224.32%) (48.00%) 31.29%
Revenue growth, 5-year CAGR 11.58% (2.05%) 4.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LITE NOK Communication Equipment median
Debt to equity 0.31 0.11 0.05
Current ratio 1.61 1.47 1.99
Net debt to EBITDA (1.38) (1.67) 0.93

Dividend

Metric LITE NOK Communication Equipment median
Dividend yield — 2.16% 1.10%
Payout ratio — 1.02 0.44

Size

Metric LITE NOK Communication Equipment median
Market cap 46.23b 42.22b 495.24m

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