Lumentum Holdings (NASDAQ: LITE) is one of 67 publicly-traded companies in the “Communications & Networking” industry, but how does it weigh in compared to its rivals? We will compare Lumentum Holdings to related companies based on the strength of its valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Profitability

This table compares Lumentum Holdings and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lumentum Holdings -10.25% 18.12% 9.48%
Lumentum Holdings Competitors -1.68% -6.44% 0.52%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Lumentum Holdings and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lumentum Holdings 1 4 9 1 2.67
Lumentum Holdings Competitors 472 2686 4042 194 2.54

Lumentum Holdings presently has a consensus target price of $64.36, indicating a potential upside of 12.81%. As a group, “Communications & Networking” companies have a potential upside of 29.21%. Given Lumentum Holdings’ rivals higher probable upside, analysts clearly believe Lumentum Holdings has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Lumentum Holdings and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Lumentum Holdings $1.00 billion $120.60 million -33.76
Lumentum Holdings Competitors $2.41 billion $620.32 million 26.19

Lumentum Holdings’ rivals have higher revenue and earnings than Lumentum Holdings. Lumentum Holdings is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Lumentum Holdings has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Lumentum Holdings’ rivals have a beta of 1.17, suggesting that their average stock price is 17% more volatile than the S&P 500.

Institutional and Insider Ownership

95.7% of Lumentum Holdings shares are held by institutional investors. Comparatively, 64.0% of shares of all “Communications & Networking” companies are held by institutional investors. 0.8% of Lumentum Holdings shares are held by company insiders. Comparatively, 13.4% of shares of all “Communications & Networking” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Lumentum Holdings beats its rivals on 7 of the 13 factors compared.

Lumentum Holdings Company Profile

Lumentum Holdings Inc. is a provider of optical and photonic products for a range of end market applications, including data communications (Datacom) and telecommunications (Telecom) networking and commercial lasers (commercial lasers) for manufacturing, inspection and life-science applications. The Company operates in two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The Company’s OpComms products include a range of components, modules and subsystems to support and maintain customers in its two primary markets: Telecom and Datacom. The Company’s Lasers products serve customers in markets and applications, such as manufacturing, biotechnology, graphics and imaging, remote sensing, and precision machining, such as drilling in printed circuit boards, wafer singulation and solar cell scribing. The Company’s customers include original equipment manufacturers (OEMs).

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