Lumentum Holdings Inc. (LITE) vs Zebra Technologies Corporation (ZBRA)

Lumentum Holdings Inc. and Zebra Technologies Corporation are both Communication Equipment companies. Lumentum Holdings Inc. is the larger, with a market value of $46.2B against $15.2B — 3.1× the size. Lumentum Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Zebra Technologies Corporation trades at 25.9×. Lumentum Holdings Inc. grew revenue faster over the last twelve months: 103.2% against 16.9%. Zebra Technologies Corporation has the higher net margin (9.80% vs −175.8%) and the lower return on invested capital (9.57% vs 13.7%). Across the 21 metrics below, Zebra Technologies Corporation leads on 13 and Lumentum Holdings Inc. on 8.

Valuation

Metric LITE ZBRA Communication Equipment median
P/E n/m 25.86 29.86
P/S 12.80 2.49 1.68
P/B 10.47 4.28 1.72
Price to free cash flow 118.47 15.47 21.71
EV/EBITDA 40.70 14.90 14.04
EV/Sales 12.64 2.88 1.76
Earnings yield (15.00%) 3.87% (0.87%)
Free cash flow yield 0.84% 6.47% 0.68%

Profitability

Metric LITE ZBRA Communication Equipment median
Gross margin 45.91% 48.90% 39.34%
Operating margin 23.46% 14.85% 2.43%
Net margin (175.78%) 9.80% (0.64%)
Free cash flow margin 10.80% 16.09% 0.27%
Return on equity (245.79%) 16.46% 0.00%
Return on assets (110.69%) 7.13% (0.10%)
Return on invested capital 13.74% 9.57% 1.29%

Growth

Metric LITE ZBRA Communication Equipment median
Revenue growth (TTM) 103.20% 16.86% 9.66%
EPS growth (last fiscal year) (25,224.32%) (19.65%) 31.29%
Revenue growth, 5-year CAGR 11.58% 3.94% 4.92%
Net income growth, 5-year CAGR 0.00% (3.63%) 0.00%

Health

Metric LITE ZBRA Communication Equipment median
Debt to equity 0.31 0.72 0.05
Current ratio 1.61 0.57 1.99
Net debt to EBITDA (1.38) 2.56 0.93

Dividend

Metric LITE ZBRA Communication Equipment median
Dividend yield — — 1.10%
Payout ratio — — 0.44

Size

Metric LITE ZBRA Communication Equipment median
Market cap 46.23b 15.15b 495.24m

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