Powerstorm (OTCMKTS:PSTO) and Lumentum (NASDAQ:LITE) Financial Comparison

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Lumentum and Powerstorm, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lumentum	0	4	12	2	2.89
Powerstorm	0	0	0	0	0.00

Lumentum currently has a consensus target price of $133.36, indicating a potential downside of 19.04%. Given Lumentum’s stronger consensus rating and higher possible upside, research analysts plainly believe Lumentum is more favorable than Powerstorm.

Risk and Volatility

Lumentum has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Powerstorm has a beta of -1.58, suggesting that its stock price is 258% less volatile than the S&P 500.

Insider and Institutional Ownership

94.1% of Lumentum shares are owned by institutional investors. 0.2% of Lumentum shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Lumentum and Powerstorm”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lumentum	$1.65 billion	7.00	$25.90 million	$0.23	716.13
Powerstorm	N/A	N/A	N/A	N/A	N/A

Lumentum has higher revenue and earnings than Powerstorm.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lumentum	1.57%	-3.02%	-0.71%
Powerstorm	N/A	N/A	N/A

Summary

Lumentum beats Powerstorm on 9 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. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables. It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; transport products, such as reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components, including 980nm, multi-mode, and Raman pumps; and switches, attenuators, photodetectors, gain flattening filters, isolators, wavelength-division multiplexing filters, arrayed waveguide gratings, multiplex/de-multiplexers, and integrated passive modules. This segment also provides Super Transport Blade, which integrates optical transport functions into a single-slot blade; vertical-cavity surface-emitting lasers; directly modulated and electro-absorption modulated lasers; and laser illumination sources for 3D sensing systems. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, fiber, diode, direct-diode, and gas lasers, such as argon-ion and helium-neon lasers for use in original equipment manufacturer applications. It serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, solar cell processing, graphics and imaging, remote sensing, and precision machining. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in San Jose, California.

About Powerstorm

Powerstorm Holdings, Inc. operates a consortium of privately held sustainability-themed companies acquired for growth. Its scope of action targets SMEs in 5 themes, including real estate and heritage, telecom and fiber, power and alternative energy, food and aquatic innovation, and electric mobility. The company was incorporated in 2011 and is based in Dover, Delaware.