Critical Survey: Lumentum (LITE) & XG Technology (XGTI)

Lumentum (NASDAQ: LITE) and XG Technology (NASDAQ:XGTI) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent recommendations and price targets for Lumentum and XG Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lumentum 0 2 14 0 2.88
XG Technology 0 1 1 0 2.50

Lumentum currently has a consensus price target of $82.50, indicating a potential upside of 30.23%. XG Technology has a consensus price target of $3.75, indicating a potential upside of 435.71%. Given XG Technology’s higher possible upside, analysts plainly believe XG Technology is more favorable than Lumentum.

Institutional & Insider Ownership

3.5% of XG Technology shares are held by institutional investors. 0.8% of Lumentum shares are held by company insiders. Comparatively, 2.8% of XG Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Lumentum and XG Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lumentum 13.63% 23.35% 12.72%
XG Technology -46.88% -61.31% -33.35%

Earnings and Valuation

This table compares Lumentum and XG Technology’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lumentum $1.00 billion 3.96 -$102.50 million $1.59 39.84
XG Technology $47.82 million 0.24 -$10.54 million N/A N/A

XG Technology has lower revenue, but higher earnings than Lumentum.

Summary

Lumentum beats XG Technology on 7 of the 11 factors compared between the two stocks.

About Lumentum

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. It operates through two segments, Optical Communications and Commercial Lasers. The Optical Communications segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and text data over high-capacity fiber optic cables. It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; and transport products comprising reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components consisting of 980nm, multi-mode, and Raman pumps. This segment also offers Super Transport Blade, which integrates optical transport functions into a single-slot blade; products for 3-D sensing applications, including a light source product; vertical-cavity surface-emitting lasers; distributed feedback and electro-absorption modulated lasers; and individual and compact laser arrays. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, diode, direct-diode, fiber, and gas lasers. This segment serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, graphics and imaging, and remote sensing, as well as in precision machining, including drilling in printed circuit boards, wafer singulation, glass cutting, and solar cell scribing. Its lasers products are used in various original equipment manufacturer applications. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in Milpitas, California.

About XG Technology

xG Technology, Inc. designs, develops, and delivers advanced wireless communications solutions worldwide. It offers electronic news gathering, wireless camera, portable microwave, and fixed point to point systems for the broadcasting market; wireless camera systems and mobile radios for the sports and entertainment market; and wireless video solutions, including manned and unmanned aerial and ground systems, mobile and handheld receive systems, and transmitters for the government/surveillance market. The company also provides microwave radio components, and satellite communication and associated amplifier products. In addition, it offers xMax, a mobile voice over Internet protocol (VoIP) and broadband data system, which utilizes an end-to-end Internet protocol (IP) system architecture; xMax CN5100 mobile hotspot, a device that allows users of Wi-Fi enabled smartphones, tablets, notebooks, and other devices to access the Internet through the xMax cognitive radio network; xMax CN3100 vehicle modem, which acts as a transparent protocol bridge allowing users of WiFi-enabled devices to access the Internet through the xMax cognitive radio network; xMax CN3200 dual-band routing modem for use in fixed and mobile applications; CN1100 access point, an IP wireless access point that delivers wide area coverage and broadband throughput for fixed, nomadic, and mobile applications; and CN7000 mobile control center, which controls the delivery of voice and data services, and manages various elements in the regional network. Further, the company offers xMonitor, which monitors the status and health of various access points, mobile control center elements, and VoIP core elements; and xDrive, a drive mapping utility designed to gather, display, and log performance statistics from mobile hotspot, dual-band routing modem, and CN3100 vehicle modem. xG Technology, Inc. was founded in 2002 and is headquartered in Sarasota, Florida.

Receive News & Ratings for Lumentum Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lumentum and related companies with MarketBeat.com's FREE daily email newsletter.



Leave a Reply