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

Lumentum Holdings Inc. and Nokia Corporation are both Communication Equipment companies. Lumentum Holdings Inc. is the larger, with a market value of $84.7B against $59.9B — 1.4× the size. Lumentum Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Nokia Corporation trades at 5.6×. Lumentum Holdings Inc. grew revenue faster over the last twelve months: 83.2% against 13.9%. Nokia Corporation has the higher net margin (3.39% vs −230.1%) and the lower return on invested capital (2.83% vs 9.26%). Across the 20 metrics below, Nokia Corporation leads on 14 and Lumentum Holdings Inc. on 6.

Valuation

Metric LITE NOK Communication Equipment median
P/E n/m 5.58 33.61
P/S 23.31 2.47 2.16
P/B 15.13 2.35 2.40
Price to free cash flow 205.10 94.34 25.02
EV/EBITDA 86.91 26.09 13.78
EV/Sales 22.94 2.33 2.27
Earnings yield (8.66%) 17.92% (0.65%)
Free cash flow yield 0.49% 1.06% 1.61%

Profitability

Metric LITE NOK Communication Equipment median
Gross margin 41.67% 44.36% 39.47%
Operating margin 17.41% 4.14% 2.39%
Net margin (230.10%) 3.39% (0.74%)
Free cash flow margin 11.36% 2.61% 1.39%
Return on equity (240.03%) 3.38% (1.91%)
Return on assets (120.34%) 1.90% (0.20%)
Return on invested capital 9.26% 2.83% 0.72%

Growth

Metric LITE NOK Communication Equipment median
Revenue growth (TTM) 83.22% 13.87% 11.48%
EPS growth (last fiscal year) (25,224.32%) (48.00%) —
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 0.35 0.11 0.06
Current ratio 1.68 1.51 2.01
Net debt to EBITDA (1.38) (1.67) 0.67

Dividend

Metric LITE NOK Communication Equipment median
Dividend yield — 3.91% 2.63%
Payout ratio 0.00 0.12 0.00

Size

Metric LITE NOK Communication Equipment median
Market cap 84.66b 59.90b 563.45m

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