Sifting through countless of stocks in the Software 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 InterDigital, Inc. 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 InterDigital, Inc. and Lumentum Holdings Inc. compare based on key financial metrics to determine which better meets your investment needs.

About InterDigital, Inc. and Lumentum Holdings Inc.

InterDigital, Inc. operates as a global research and development company focuses on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing various products and services, including makers of wireless communications devices, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G advanced and 6G, as well as technologies for mobile phones, automobiles and autonomous vehicles, wearables, smart factories and smart homes, robots, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies, and artificial intelligence and machine learning solutions. Further, the company’s patented technologies are used in various products that include smartphones, tablets, consumer electronics, base stations, televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles, as well as patented technologies are used in various services, such as video streaming, user generated content sharing, video conferencing, video gaming, and other cloud-based services. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.

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 Software and InterDigital, Inc., Lumentum Holdings Inc. Stock News

As of September 4, 2026, InterDigital, Inc. had a $8.7 billion market capitalization, compared to the Software median of $1.1 million. InterDigital, Inc.’s stock is up 6.1% in 2026, up 0.8% in the previous five trading days and up 17.39% in the past year.

Currently, InterDigital, Inc.’s price-earnings ratio is 39.2. InterDigital, Inc.’s trailing 12-month revenue is $788.5 million with a 38.3% net profit margin. Year-over-year quarterly sales growth most recently was -13.4%. Analysts expect adjusted earnings to reach $11.555 per share for the current fiscal year. InterDigital, Inc. currently has a 0.8% dividend yield.

As of September 4, 2026, Lumentum Holdings Inc. had a $79.0 billion market cap, putting it in the 96th percentile of all stocks. Lumentum Holdings Inc.’s stock is up 139.1% in 2026, down 1.5% in the previous five trading days and up 521% 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 InterDigital, Inc. 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 InterDigital, Inc. and Lumentum Holdings Inc.’s stock grades to see how they measure up against one another.

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InterDigital, Inc. and Lumentum Holdings Inc.’s Quality Grades

Company	Ticker	Quality
InterDigital, Inc.	IDCC	A
Lumentum Holdings Inc.	LITE	C

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks 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 the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

InterDigital, Inc. has a Quality Score of 93, which is Very Strong. Lumentum Holdings Inc. has a Quality Score of 53, which is Average.

The Quality Grade Winner: InterDigital, Inc.

As you can clearly see from the Quality Grade breakdown above, InterDigital, Inc. has a better overall quality grade than Lumentum Holdings Inc.. For investors who are looking for companies with higher quality than others in the same industry, InterDigital, Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

InterDigital, Inc. and Lumentum Holdings Inc.’s Momentum Grades

Company	Ticker	Momentum
InterDigital, Inc.	IDCC	B
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%.

InterDigital, Inc. has a Momentum Score of 77, which is Strong. Lumentum Holdings Inc. has a Momentum Score of 98, which is Very Strong.

The Momentum Grade Winner: Lumentum Holdings Inc.

As you can clearly see from the Momentum Grade breakdown above, Lumentum Holdings Inc. is considered to have stronger momentum compared to InterDigital, Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Lumentum Holdings Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

InterDigital, Inc. and Lumentum Holdings Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
InterDigital, Inc.	IDCC	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.

InterDigital, Inc. has a Earnings Estimate Score of 66, 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 InterDigital, Inc.. 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 InterDigital, Inc. and Lumentum Holdings Inc. Grades

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

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.

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.

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 InterDigital, Inc. 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, InterDigital, Inc. or Lumentum Holdings Inc. Stock?

Overall, InterDigital, Inc. stock has a Momentum Score of 77, Estimate Revisions Score of 66 and Quality Score of 93.

Lumentum Holdings Inc. stock has a Momentum Score of 98, Estimate Revisions Score of 83 and Quality Score of 53.

Comparing InterDigital, Inc. 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.