LITE
Lumentum Holdings Inc.
Communication Equipment
Market Cap$63.74B
5Y Perf.+1117.7%
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Stock Comparison
LITE vs CIEN
Revenue, margins, valuation, and 5-year total return — side by side.
CIEN
Ciena Corporation
Communication Equipment
Market Cap$76.14B
5Y Perf.+874.0%
LITE vs CIEN — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | LITE | CIEN |
|---|---|---|
| Industry | Communication Equipment | Communication Equipment |
| Market Cap | $63.74B | $76.14B |
| Revenue (TTM) | $2.49B | $5.12B |
| Net Income (TTM) | $440M | $229M |
| Gross Margin | 37.7% | 40.6% |
| Operating Margin | 9.5% | 8.2% |
| Forward P/E | 114.4x | 87.5x |
| Total Debt | $2.61B | $1.58B |
| Cash & Equiv. | $521M | $1.09B |
LITE vs CIEN — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
LITE
CIEN
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Lumentum Holdings I… (LITE) | 100 | 1217.7 | +1117.7% |
| Ciena Corporation (CIEN) | 100 | 974.0 | +874.0% |
Price return only. Dividends and distributions are not included.
Quick Verdict: LITE vs CIEN
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: LITE leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. Ciena Corporation is the stronger pick specifically for valuation and capital efficiency and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
LITE
Lumentum Holdings Inc.
The Growth Play
LITE carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 21.0%, EPS growth 104.6%, 3Y rev CAGR -1.3%
- 36.4% 10Y total return vs CIEN's 32.3%
- 21.0% revenue growth vs CIEN's 18.8%
Best for: growth exposure and long-term compounding
CIEN
Ciena Corporation
The Income Pick
CIEN is the clearest fit if your priority is income & stability and sleep-well-at-night.
- beta 2.46
- Lower volatility, beta 2.46, Low D/E 58.0%, current ratio 2.73x
- Beta 2.46, current ratio 2.73x
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | LITE | 21.0% revenue growth vs CIEN's 18.8% |
| Value | CIEN | Lower P/E (87.5x vs 114.4x) |
| Quality / Margins | LITE | 17.7% margin vs CIEN's 4.5% |
| Stability / Safety | CIEN | Beta 2.46 vs LITE's 2.69, lower leverage |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | LITE | +12.5% vs CIEN's +6.3% |
| Efficiency (ROA) | LITE | 8.5% ROA vs CIEN's 4.0%, ROIC -4.3% vs 6.9% |
LITE vs CIEN — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2023
FY 2024
LITE vs CIEN — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLCIENLAGGINGLITE
LITELumentum Holdings Inc.
2leads
CIENCiena Corporation
3leads
6 Total Categories
CATEGORYLEADERvs LITEMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
LITE5/6
Valuation MetricsMultiples, price ratios, and targets
CIEN5/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
CIEN6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
LITE6/6
Risk & VolatilityBeta, volatility, and downside exposure
CIEN2/2
Analyst OutlookRatings, price targets, and dividends
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Income & Cash Flow (Last 12 Months)
LITE leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CIEN is the larger business by revenue, generating $5.1B annually — 2.1x LITE's $2.5B. LITE is the more profitable business, keeping 17.7% of every revenue dollar as net income compared to CIEN's 4.5%. On growth, LITE holds the edge at +90.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | LITELumentum Holdings… | CIENCiena Corporation |
|---|---|---|
| RevenueTrailing 12 months | $2.5B | $5.1B |
| EBITDAEarnings before interest/tax | $425M | $571M |
| Net IncomeAfter-tax profit | $440M | $229M |
| Free Cash FlowCash after capex | $399M | $742M |
| Gross MarginGross profit ÷ Revenue | +37.7% | +40.6% |
| Operating MarginEBIT ÷ Revenue | +9.5% | +8.2% |
| Net MarginNet income ÷ Revenue | +17.7% | +4.5% |
| FCF MarginFCF ÷ Revenue | +16.0% | +14.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +90.1% | +33.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.3% | +2.3% |
LITE leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
CIEN leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 633.2x trailing earnings, CIEN trades at a 74% valuation discount to LITE's 2412.9x P/E. On an enterprise value basis, CIEN's 169.9x EV/EBITDA is more attractive than LITE's 859.4x.
| Metric | LITELumentum Holdings… | CIENCiena Corporation |
|---|---|---|
| Market CapShares × price | $63.7B | $76.1B |
| Enterprise ValueMkt cap + debt − cash | $65.8B | $76.6B |
| Trailing P/EPrice ÷ TTM EPS | 2412.94x | 633.25x |
| Forward P/EPrice ÷ next-FY EPS est. | 114.43x | 87.54x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 859.43x | 169.86x |
| Price / SalesMarket cap ÷ Revenue | 38.75x | 15.96x |
| Price / BookPrice ÷ Book value/share | 54.76x | 28.64x |
| Price / FCFMarket cap ÷ FCF | — | 114.44x |
CIEN leads this category, winning 5 of 5 comparable metrics.
Profitability & Efficiency
CIEN leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
LITE delivers a 30.7% return on equity — every $100 of shareholder capital generates $31 in annual profit, vs $8 for CIEN. CIEN carries lower financial leverage with a 0.58x debt-to-equity ratio, signaling a more conservative balance sheet compared to LITE's 2.30x. On the Piotroski fundamental quality scale (0–9), CIEN scores 8/9 vs LITE's 7/9, reflecting strong financial health.
| Metric | LITELumentum Holdings… | CIENCiena Corporation |
|---|---|---|
| ROE (TTM)Return on equity | +30.7% | +8.3% |
| ROA (TTM)Return on assets | +8.5% | +4.0% |
| ROICReturn on invested capital | -4.3% | +6.9% |
| ROCEReturn on capital employed | -4.8% | +6.8% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 8 |
| Debt / EquityFinancial leverage | 2.30x | 0.58x |
| Net DebtTotal debt minus cash | $2.1B | $490M |
| Cash & Equiv.Liquid assets | $521M | $1.1B |
| Total DebtShort + long-term debt | $2.6B | $1.6B |
| Interest CoverageEBIT ÷ Interest expense | 9.62x | 3.94x |
CIEN leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
LITE leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in LITE five years ago would be worth $107,656 today (with dividends reinvested), compared to $99,918 for CIEN. Over the past 12 months, LITE leads with a +1247.8% total return vs CIEN's +633.9%. The 3-year compound annual growth rate (CAGR) favors LITE at 165.2% vs CIEN's 130.7% — a key indicator of consistent wealth creation.
| Metric | LITELumentum Holdings… | CIENCiena Corporation |
|---|---|---|
| YTD ReturnYear-to-date | +131.2% | +118.8% |
| 1-Year ReturnPast 12 months | +1247.8% | +633.9% |
| 3-Year ReturnCumulative with dividends | +1764.2% | +1127.8% |
| 5-Year ReturnCumulative with dividends | +976.6% | +899.2% |
| 10-Year ReturnCumulative with dividends | +3635.5% | +3230.8% |
| CAGR (3Y)Annualised 3-year return | +165.2% | +130.7% |
LITE leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
CIEN leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
CIEN is the less volatile stock with a 2.46 beta — it tends to amplify market swings less than LITE's 2.69 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CIEN currently trades 92.2% from its 52-week high vs LITE's 87.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LITELumentum Holdings… | CIENCiena Corporation |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.69x | 2.46x |
| 52-Week HighHighest price in past year | $1021.00 | $583.77 |
| 52-Week LowLowest price in past year | $60.38 | $70.77 |
| % of 52W HighCurrent price vs 52-week peak | +87.4% | +92.2% |
| RSI (14)Momentum oscillator 0–100 | 58.8 | 71.3 |
| Avg Volume (50D)Average daily shares traded | 6.4M | 2.8M |
CIEN leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates LITE as "Buy" and CIEN as "Buy". Consensus price targets imply -28.0% upside for LITE (target: $643) vs -37.9% for CIEN (target: $334).
| Metric | LITELumentum Holdings… | CIENCiena Corporation |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $643.18 | $334.17 |
| # AnalystsCovering analysts | 24 | 41 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +0.4% |
Insufficient data to determine a leader in this category.
Key Takeaway
CIEN leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). LITE leads in 2 (Income & Cash Flow, Total Returns).
Best OverallCiena Corporation (CIEN)Leads 3 of 6 categories
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LITE vs CIEN: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is LITE or CIEN a better buy right now?
For growth investors, Lumentum Holdings Inc.
(LITE) is the stronger pick with 21. 0% revenue growth year-over-year, versus 18. 8% for Ciena Corporation (CIEN). Ciena Corporation (CIEN) offers the better valuation at 633. 2x trailing P/E (87. 5x forward), making it the more compelling value choice. Analysts rate Lumentum Holdings Inc. (LITE) a "Buy" — based on 24 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — LITE or CIEN?
On trailing P/E, Ciena Corporation (CIEN) is the cheapest at 633.
2x versus Lumentum Holdings Inc. at 2412. 9x. On forward P/E, Ciena Corporation is actually cheaper at 87. 5x.
03Which is the better long-term investment — LITE or CIEN?
Over the past 5 years, Lumentum Holdings Inc.
(LITE) delivered a total return of +976. 6%, compared to +899. 2% for Ciena Corporation (CIEN). Over 10 years, the gap is even starker: LITE returned +36. 4% versus CIEN's +32. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — LITE or CIEN?
By beta (market sensitivity over 5 years), Ciena Corporation (CIEN) is the lower-risk stock at 2.
46β versus Lumentum Holdings Inc. 's 2. 69β — meaning LITE is approximately 9% more volatile than CIEN relative to the S&P 500. On balance sheet safety, Ciena Corporation (CIEN) carries a lower debt/equity ratio of 58% versus 2% for Lumentum Holdings Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — LITE or CIEN?
By revenue growth (latest reported year), Lumentum Holdings Inc.
(LITE) is pulling ahead at 21. 0% versus 18. 8% for Ciena Corporation (CIEN). On earnings-per-share growth, the picture is similar: Lumentum Holdings Inc. grew EPS 104. 6% year-over-year, compared to 46. 6% for Ciena Corporation. Over a 3-year CAGR, CIEN leads at 9. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — LITE or CIEN?
Ciena Corporation (CIEN) is the more profitable company, earning 2.
6% net margin versus 1. 6% for Lumentum Holdings Inc. — meaning it keeps 2. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CIEN leads at 6. 5% versus -10. 9% for LITE. At the gross margin level — before operating expenses — CIEN leads at 41. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is LITE or CIEN more undervalued right now?
On forward earnings alone, Ciena Corporation (CIEN) trades at 87.
5x forward P/E versus 114. 4x for Lumentum Holdings Inc. — 26. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LITE: -28. 0% to $643. 18.
08Which pays a better dividend — LITE or CIEN?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is LITE or CIEN better for a retirement portfolio?
For long-horizon retirement investors, Lumentum Holdings Inc.
(LITE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Ciena Corporation (CIEN) carries a higher beta of 2. 46 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (LITE: +36. 4%, CIEN: +32. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between LITE and CIEN?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(LITE: 90.1% · CIEN: 33.1%)Net Margin>
%
(LITE: 17.7% · CIEN: 4.5%)P/E Ratio<
x
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