LITE
Lumentum Holdings Inc.
Communication Equipment
Market Cap$63.74B
5Y Perf.+1117.7%
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Stock Comparison
LITE vs IPGP
Revenue, margins, valuation, and 5-year total return — side by side.
IPGP
IPG Photonics Corporation
Semiconductors
Market Cap$4.31B
5Y Perf.-34.6%
LITE vs IPGP — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | LITE | IPGP |
|---|---|---|
| Industry | Communication Equipment | Semiconductors |
| Market Cap | $63.74B | $4.31B |
| Revenue (TTM) | $2.49B | $1.04B |
| Net Income (TTM) | $440M | $29M |
| Gross Margin | 37.7% | 37.6% |
| Operating Margin | 9.5% | 0.3% |
| Forward P/E | 114.4x | 62.6x |
| Total Debt | $2.61B | $0.00 |
| Cash & Equiv. | $521M | $404M |
LITE vs IPGP — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
LITE
IPGP
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Lumentum Holdings I… (LITE) | 100 | 1217.7 | +1117.7% |
| IPG Photonics Corpo… (IPGP) | 100 | 65.4 | -34.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: LITE vs IPGP
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. IPG Photonics 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 IPGP's 20.2%
- 21.0% revenue growth vs IPGP's 2.7%
Best for: growth exposure and long-term compounding
IPGP
IPG Photonics Corporation
The Income Pick
IPGP is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 1 yrs, beta 1.80
- Lower volatility, beta 1.80, current ratio 6.08x
- Beta 1.80, current ratio 6.08x
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | LITE | 21.0% revenue growth vs IPGP's 2.7% |
| Value | IPGP | Lower P/E (62.6x vs 114.4x) |
| Quality / Margins | LITE | 17.7% margin vs IPGP's 2.8% |
| Stability / Safety | IPGP | Beta 1.80 vs LITE's 2.69 |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | LITE | +12.5% vs IPGP's +75.6% |
| Efficiency (ROA) | LITE | 8.5% ROA vs IPGP's 1.2%, ROIC -4.3% vs 0.6% |
LITE vs IPGP — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2023
FY 2025
LITE vs IPGP — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLIPGPLAGGINGLITE
LITELumentum Holdings Inc.
2leads
IPGPIPG Photonics Corpora…
3leads
6 Total Categories
CATEGORYLEADERvs LITEMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
LITE6/6
Valuation MetricsMultiples, price ratios, and targets
IPGP5/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
IPGP4/7
Total Returns1Y, 3Y, 5Y total returns with dividends
LITE6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
IPGP1/1
Income & Cash Flow (Last 12 Months)
LITE leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
LITE is the larger business by revenue, generating $2.5B annually — 2.4x IPGP's $1.0B. LITE is the more profitable business, keeping 17.7% of every revenue dollar as net income compared to IPGP's 2.8%. On growth, LITE holds the edge at +90.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | LITELumentum Holdings… | IPGPIPG Photonics Cor… |
|---|---|---|
| RevenueTrailing 12 months | $2.5B | $1.0B |
| EBITDAEarnings before interest/tax | $425M | $55M |
| Net IncomeAfter-tax profit | $440M | $29M |
| Free Cash FlowCash after capex | $399M | $8M |
| Gross MarginGross profit ÷ Revenue | +37.7% | +37.6% |
| Operating MarginEBIT ÷ Revenue | +9.5% | +0.3% |
| Net MarginNet income ÷ Revenue | +17.7% | +2.8% |
| FCF MarginFCF ÷ Revenue | +16.0% | +0.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +90.1% | +16.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.3% | -54.4% |
LITE leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
IPGP leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 139.2x trailing earnings, IPGP trades at a 94% valuation discount to LITE's 2412.9x P/E. On an enterprise value basis, IPGP's 48.9x EV/EBITDA is more attractive than LITE's 859.4x.
| Metric | LITELumentum Holdings… | IPGPIPG Photonics Cor… |
|---|---|---|
| Market CapShares × price | $63.7B | $4.3B |
| Enterprise ValueMkt cap + debt − cash | $65.8B | $3.9B |
| Trailing P/EPrice ÷ TTM EPS | 2412.94x | 139.22x |
| Forward P/EPrice ÷ next-FY EPS est. | 114.43x | 62.62x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 859.43x | 48.90x |
| Price / SalesMarket cap ÷ Revenue | 38.75x | 4.30x |
| Price / BookPrice ÷ Book value/share | 54.76x | 2.04x |
| Price / FCFMarket cap ÷ FCF | — | — |
IPGP leads this category, winning 5 of 5 comparable metrics.
Profitability & Efficiency
IPGP leads this category, winning 4 of 7 comparable metrics.
Profitability & Efficiency
LITE delivers a 30.7% return on equity — every $100 of shareholder capital generates $31 in annual profit, vs $1 for IPGP. On the Piotroski fundamental quality scale (0–9), LITE scores 7/9 vs IPGP's 6/9, reflecting strong financial health.
| Metric | LITELumentum Holdings… | IPGPIPG Photonics Cor… |
|---|---|---|
| ROE (TTM)Return on equity | +30.7% | +1.4% |
| ROA (TTM)Return on assets | +8.5% | +1.2% |
| ROICReturn on invested capital | -4.3% | +0.6% |
| ROCEReturn on capital employed | -4.8% | +0.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 2.30x | — |
| Net DebtTotal debt minus cash | $2.1B | -$404M |
| Cash & Equiv.Liquid assets | $521M | $404M |
| Total DebtShort + long-term debt | $2.6B | $0 |
| Interest CoverageEBIT ÷ Interest expense | 9.62x | — |
IPGP leads this category, winning 4 of 7 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 $5,151 for IPGP. Over the past 12 months, LITE leads with a +1247.8% total return vs IPGP's +75.6%. The 3-year compound annual growth rate (CAGR) favors LITE at 165.2% vs IPGP's -4.4% — a key indicator of consistent wealth creation.
| Metric | LITELumentum Holdings… | IPGPIPG Photonics Cor… |
|---|---|---|
| YTD ReturnYear-to-date | +131.2% | +35.8% |
| 1-Year ReturnPast 12 months | +1247.8% | +75.6% |
| 3-Year ReturnCumulative with dividends | +1764.2% | -12.7% |
| 5-Year ReturnCumulative with dividends | +976.6% | -48.5% |
| 10-Year ReturnCumulative with dividends | +3635.5% | +20.2% |
| CAGR (3Y)Annualised 3-year return | +165.2% | -4.4% |
LITE leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — LITE and IPGP each lead in 1 of 2 comparable metrics.
Risk & Volatility
IPGP is the less volatile stock with a 1.80 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. LITE currently trades 87.4% from its 52-week high vs IPGP's 65.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LITELumentum Holdings… | IPGPIPG Photonics Cor… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.69x | 1.80x |
| 52-Week HighHighest price in past year | $1021.00 | $155.82 |
| 52-Week LowLowest price in past year | $60.38 | $53.98 |
| % of 52W HighCurrent price vs 52-week peak | +87.4% | +65.2% |
| RSI (14)Momentum oscillator 0–100 | 58.8 | 39.7 |
| Avg Volume (50D)Average daily shares traded | 6.4M | 510K |
Evenly matched — LITE and IPGP each lead in 1 of 2 comparable metrics.
Analyst Outlook
IPGP leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates LITE as "Buy" and IPGP as "Buy". Consensus price targets imply 49.2% upside for IPGP (target: $152) vs -28.0% for LITE (target: $643).
| Metric | LITELumentum Holdings… | IPGPIPG Photonics Cor… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $643.18 | $151.67 |
| # AnalystsCovering analysts | 24 | 27 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | 1 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +1.3% |
IPGP leads this category, winning 1 of 1 comparable metric.
Key Takeaway
IPGP leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). LITE leads in 2 (Income & Cash Flow, Total Returns). 1 tied.
Best OverallIPG Photonics Corporation (IPGP)Leads 3 of 6 categories
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LITE vs IPGP: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is LITE or IPGP 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 2. 7% for IPG Photonics Corporation (IPGP). IPG Photonics Corporation (IPGP) offers the better valuation at 139. 2x trailing P/E (62. 6x 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 IPGP?
On trailing P/E, IPG Photonics Corporation (IPGP) is the cheapest at 139.
2x versus Lumentum Holdings Inc. at 2412. 9x. On forward P/E, IPG Photonics Corporation is actually cheaper at 62. 6x.
03Which is the better long-term investment — LITE or IPGP?
Over the past 5 years, Lumentum Holdings Inc.
(LITE) delivered a total return of +976. 6%, compared to -48. 5% for IPG Photonics Corporation (IPGP). Over 10 years, the gap is even starker: LITE returned +36. 4% versus IPGP's +20. 2%. 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 IPGP?
By beta (market sensitivity over 5 years), IPG Photonics Corporation (IPGP) is the lower-risk stock at 1.
80β versus Lumentum Holdings Inc. 's 2. 69β — meaning LITE is approximately 49% more volatile than IPGP relative to the S&P 500.
05Which is growing faster — LITE or IPGP?
By revenue growth (latest reported year), Lumentum Holdings Inc.
(LITE) is pulling ahead at 21. 0% versus 2. 7% for IPG Photonics Corporation (IPGP). On earnings-per-share growth, the picture is similar: IPG Photonics Corporation grew EPS 117. 8% year-over-year, compared to 104. 6% for Lumentum Holdings Inc.. Over a 3-year CAGR, LITE leads at -1. 3% 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 IPGP?
IPG Photonics Corporation (IPGP) is the more profitable company, earning 3.
1% net margin versus 1. 6% for Lumentum Holdings Inc. — meaning it keeps 3. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: IPGP leads at 1. 3% versus -10. 9% for LITE. At the gross margin level — before operating expenses — IPGP leads at 38. 0%, 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 IPGP more undervalued right now?
On forward earnings alone, IPG Photonics Corporation (IPGP) trades at 62.
6x forward P/E versus 114. 4x for Lumentum Holdings Inc. — 51. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for IPGP: 49. 2% to $151. 67.
08Which pays a better dividend — LITE or IPGP?
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 IPGP better for a retirement portfolio?
For long-horizon retirement investors, IPG Photonics Corporation (IPGP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding.
Lumentum Holdings Inc. (LITE) carries a higher beta of 2. 69 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (IPGP: +20. 2%, LITE: +36. 4%), 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 IPGP?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: LITE is a mid-cap high-growth stock; IPGP is a small-cap quality compounder stock. 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% · IPGP: 16.6%)Net Margin>
%
(LITE: 17.7% · IPGP: 2.8%)P/E Ratio<
x
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