Sifting through countless of stocks in the Communications Equipment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Ciena Corporation or Lumentum Holdings Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Ciena Corporation and Lumentum Holdings Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Ciena Corporation and Lumentum Holdings Inc.

Ciena Corporation, a network technology company, provides hardware, software, and services for various network operators in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and India. It operates through Networking Platforms, Platform Software and Services, Blue Planet Automation Software and Services, and Global Services segments. The Networking Platforms segment consists optical networking, routing, and switching products and services. This segment products include the 6500 Packet-Optical Platform, Waveserver modular interconnect system, the 6500 Reconfigurable Line System, and coherent pluggable transceivers; and the 3000 family of service delivery platforms and the 5000 family of service aggregation, as well as the 8100 Coherent Routing platforms and virtualization software. The Platform Software and Services segment offers navigator network control suite; and software subscription services, consulting, network migration and integration, installation and upgrade support services, and technical support solutions. The Blue Planet Automation Software and Services segment inventory management, orchestration, route optimization and analysis, and unified assurance and analytics software; and sells subscription, installation, support, consulting, and design services related to the Blue Planet automation platform. The Global Services segment provides services for advisory and enablement, implementation, and maintenance, support, and learning activities. Ciena Corporation was incorporated in 1992 and is headquartered in Hanover, Maryland.

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. It offers component products, including semiconductor laser chips, laser sub-assemblies, line subsystems, and wavelength management systems. The company also offers system products, such as optical modules, optical circuit switches, and industrial lasers, including short-pulse solid-state lasers and kilowatt-class fiber lasers. Its products and solutions are used in cloud, artificial intelligence and machine learning (AI/ML), telecommunications, consumer, and industrial end-market applications. The company was incorporated in 2015 and is headquartered in San Jose, California.

Latest Communications Equipment and Ciena Corporation, Lumentum Holdings Inc. Stock News

As of September 2, 2026, Ciena Corporation had a $50.1 billion market capitalization, compared to the Communications Equipment median of $370.8 million. Ciena Corporation’s stock is up 35% in 2026, down 21% in the previous five trading days and up 278.42% in the past year.

Currently, Ciena Corporation’s price-earnings ratio is 117.7. Ciena Corporation’s trailing 12-month revenue is $5.6 billion with a 7.9% net profit margin. Year-over-year quarterly sales growth most recently was 39.5%. Analysts expect adjusted earnings to reach $6.553 per share for the current fiscal year. Ciena Corporation does not currently pay a dividend.

As of September 2, 2026, Lumentum Holdings Inc. had a $78.1 billion market cap, putting it in the 96th percentile of all stocks. Lumentum Holdings Inc.’s stock is up 126.9% in 2026, down 12.5% in the previous five trading days and up 556.77% in the past year.

Currently, Lumentum Holdings Inc. does not have a price-earnings ratio. Lumentum Holdings Inc.’s trailing 12-month revenue is $3.0 billion with a -230.1% net profit margin. Year-over-year quarterly sales growth most recently was 109.3%. Analysts expect adjusted earnings to reach $21.643 per share for the current fiscal year. Lumentum Holdings Inc. does not currently pay a dividend.

How We Compare Ciena Corporation and Lumentum Holdings Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Ciena Corporation and Lumentum Holdings Inc.’s stock grades to see how they measure up against one another.

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Ciena Corporation and Lumentum Holdings Inc. Stock Value Grades

Company	Ticker	Value
Ciena Corporation	CIEN	F
Lumentum Holdings Inc.	LITE	F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Ciena Corporation has a Value Score of 6, which is Ultra Expensive. Lumentum Holdings Inc. has a Value Score of 0, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Ciena Corporation or Lumentum Holdings Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Ciena Corporation or Lumentum Holdings Inc. is the better investment when it comes to value.

Ciena Corporation and Lumentum Holdings Inc.’s Momentum Grades

Company	Ticker	Momentum
Ciena Corporation	CIEN	A
Lumentum Holdings Inc.	LITE	A

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Ciena Corporation has a Momentum Score of 96, which is Very Strong. Lumentum Holdings Inc. has a Momentum Score of 98, which is Very Strong.

The Momentum Grade Winner: It’s a Tie!

Looking at the Momentum Grade breakdown above, both Ciena Corporation and Lumentum Holdings Inc. have a grade of A. For those who focus solely on a company’s momentum, further research will need to be conducted into both companies to see if they fit your individual needs as an investor.

Ciena Corporation and Lumentum Holdings Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Ciena Corporation	CIEN	B
Lumentum Holdings Inc.	LITE	A

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Ciena Corporation has a Earnings Estimate Score of 74, which is Positive. Lumentum Holdings Inc. has a Earnings Estimate Score of 83, which is Very Positive.

The Earnings Estimate Revisions Grade Winner: Lumentum Holdings Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Lumentum Holdings Inc. has a better Earnings Estimate Revisions Grade than Ciena Corporation. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Lumentum Holdings Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Ciena Corporation and Lumentum Holdings Inc. Grades

In addition to Value, Momentum and Estimate Revisions, A+ Investor also provides grades for Growth and Quality.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Ciena Corporation and Lumentum Holdings Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Ciena Corporation or Lumentum Holdings Inc. Stock?

Overall, Ciena Corporation stock has a Value Score of 6, Momentum Score of 96 and Estimate Revisions Score of 74.

Lumentum Holdings Inc. stock has a Value Score of 0, Momentum Score of 98 and Estimate Revisions Score of 83.

Comparing Ciena Corporation and Lumentum Holdings Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.