CSCO vs. LITE: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CSCO and LITE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CSCO | LITE |
|---|---|---|
| Company Name | Cisco Systems, Inc. | Lumentum Holdings Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Communications Equipment | Communications Equipment |
| Market Capitalization | 313.01 billion USD | 17.64 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | February 16, 1990 | July 23, 2015 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CSCO and LITE by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | CSCO | LITE |
|---|---|---|
| 5-Day Price Return | 8.20% | -10.67% |
| 13-Week Price Return | 17.82% | 100.37% |
| 26-Week Price Return | 26.25% | 211.57% |
| 52-Week Price Return | 31.80% | 163.63% |
| Month-to-Date Return | 6.69% | 15.18% |
| Year-to-Date Return | 31.76% | 176.53% |
| 10-Day Avg. Volume | 29.12M | 6.07M |
| 3-Month Avg. Volume | 19.91M | 3.56M |
| 3-Month Volatility | 22.61% | 77.71% |
| Beta | 0.85 | 1.54 |
Profitability
Return on Equity (TTM)
CSCO
22.31%
Communications Equipment Industry
- Max
- 31.28%
- Q3
- 24.67%
- Median
- 13.12%
- Q1
- 4.60%
- Min
- -12.73%
CSCO’s Return on Equity of 22.31% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
LITE
12.27%
Communications Equipment Industry
- Max
- 31.28%
- Q3
- 24.67%
- Median
- 13.12%
- Q1
- 4.60%
- Min
- -12.73%
LITE’s Return on Equity of 12.27% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
CSCO
17.90%
Communications Equipment Industry
- Max
- 28.72%
- Q3
- 14.02%
- Median
- 5.41%
- Q1
- 2.50%
- Min
- -13.11%
A Net Profit Margin of 17.90% places CSCO in the upper quartile for the Communications Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
LITE
6.11%
Communications Equipment Industry
- Max
- 28.72%
- Q3
- 14.02%
- Median
- 5.41%
- Q1
- 2.50%
- Min
- -13.11%
LITE’s Net Profit Margin of 6.11% is aligned with the median group of its peers in the Communications Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
CSCO
22.12%
Communications Equipment Industry
- Max
- 33.69%
- Q3
- 15.81%
- Median
- 6.02%
- Q1
- 3.00%
- Min
- -4.94%
An Operating Profit Margin of 22.12% places CSCO in the upper quartile for the Communications Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
LITE
-4.94%
Communications Equipment Industry
- Max
- 33.69%
- Q3
- 15.81%
- Median
- 6.02%
- Q1
- 3.00%
- Min
- -4.94%
LITE has a negative Operating Profit Margin of -4.94%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | CSCO | LITE |
|---|---|---|
| Return on Equity (TTM) | 22.31% | 12.27% |
| Return on Assets (TTM) | 8.53% | 2.68% |
| Net Profit Margin (TTM) | 17.90% | 6.11% |
| Operating Profit Margin (TTM) | 22.12% | -4.94% |
| Gross Profit Margin (TTM) | 64.85% | 30.59% |
Financial Strength
Current Ratio (MRQ)
CSCO
0.93
Communications Equipment Industry
- Max
- 3.28
- Q3
- 2.10
- Median
- 1.52
- Q1
- 1.17
- Min
- 0.91
CSCO’s Current Ratio of 0.93 falls into the lower quartile for the Communications Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
LITE
1.37
Communications Equipment Industry
- Max
- 3.28
- Q3
- 2.10
- Median
- 1.52
- Q1
- 1.17
- Min
- 0.91
LITE’s Current Ratio of 1.37 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
CSCO
0.60
Communications Equipment Industry
- Max
- 1.44
- Q3
- 0.96
- Median
- 0.43
- Q1
- 0.21
- Min
- 0.00
CSCO’s Debt-to-Equity Ratio of 0.60 is typical for the Communications Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
LITE
4.15
Communications Equipment Industry
- Max
- 1.44
- Q3
- 0.96
- Median
- 0.43
- Q1
- 0.21
- Min
- 0.00
With a Debt-to-Equity Ratio of 4.15, LITE operates with exceptionally high leverage compared to the Communications Equipment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
CSCO
22.76
Communications Equipment Industry
- Max
- 55.49
- Q3
- 34.19
- Median
- 8.92
- Q1
- 3.73
- Min
- -9.94
CSCO’s Interest Coverage Ratio of 22.76 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
LITE
4.46
Communications Equipment Industry
- Max
- 55.49
- Q3
- 34.19
- Median
- 8.92
- Q1
- 3.73
- Min
- -9.94
LITE’s Interest Coverage Ratio of 4.46 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | CSCO | LITE |
|---|---|---|
| Current Ratio (MRQ) | 0.93 | 1.37 |
| Quick Ratio (MRQ) | 0.83 | 0.94 |
| Debt-to-Equity Ratio (MRQ) | 0.60 | 4.15 |
| Interest Coverage Ratio (TTM) | 22.76 | 4.46 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CSCO
2.10%
Communications Equipment Industry
- Max
- 2.99%
- Q3
- 2.30%
- Median
- 0.91%
- Q1
- 0.00%
- Min
- 0.00%
CSCO’s Dividend Yield of 2.10% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.
LITE
0.00%
Communications Equipment Industry
- Max
- 2.99%
- Q3
- 2.30%
- Median
- 0.91%
- Q1
- 0.00%
- Min
- 0.00%
LITE currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
CSCO
62.56%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 61.16%
- Median
- 30.78%
- Q1
- 0.00%
- Min
- 0.00%
CSCO’s Dividend Payout Ratio of 62.56% is in the upper quartile for the Communications Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
LITE
0.00%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 61.16%
- Median
- 30.78%
- Q1
- 0.00%
- Min
- 0.00%
LITE has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | CSCO | LITE |
|---|---|---|
| Dividend Yield (TTM) | 2.10% | 0.00% |
| Dividend Payout Ratio (TTM) | 62.56% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
CSCO
29.77
Communications Equipment Industry
- Max
- 74.67
- Q3
- 56.42
- Median
- 31.00
- Q1
- 15.93
- Min
- 3.89
CSCO’s P/E Ratio of 29.77 is within the middle range for the Communications Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
LITE
157.44
Communications Equipment Industry
- Max
- 74.67
- Q3
- 56.42
- Median
- 31.00
- Q1
- 15.93
- Min
- 3.89
At 157.44, LITE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Communications Equipment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
CSCO
5.33
Communications Equipment Industry
- Max
- 11.84
- Q3
- 5.68
- Median
- 2.55
- Q1
- 1.24
- Min
- 0.40
CSCO’s P/S Ratio of 5.33 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
LITE
9.62
Communications Equipment Industry
- Max
- 11.84
- Q3
- 5.68
- Median
- 2.55
- Q1
- 1.24
- Min
- 0.40
LITE’s P/S Ratio of 9.62 is in the upper echelon for the Communications Equipment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
CSCO
6.00
Communications Equipment Industry
- Max
- 6.02
- Q3
- 6.01
- Median
- 3.83
- Q1
- 2.41
- Min
- 0.42
CSCO’s P/B Ratio of 6.00 is within the conventional range for the Communications Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
LITE
14.77
Communications Equipment Industry
- Max
- 6.02
- Q3
- 6.01
- Median
- 3.83
- Q1
- 2.41
- Min
- 0.42
At 14.77, LITE’s P/B Ratio is at an extreme premium to the Communications Equipment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | CSCO | LITE |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 29.77 | 157.44 |
| Price-to-Sales Ratio (TTM) | 5.33 | 9.62 |
| Price-to-Book Ratio (MRQ) | 6.00 | 14.77 |
| Price-to-Free Cash Flow Ratio (TTM) | 24.15 | 1,753.62 |