AAOI vs. LITE

Last updated Apr 1, 2026

Compare and contrast key facts about Applied Optoelectronics, Inc. (AAOI) and Lumentum Holdings Inc. (LITE).

Performance

AAOI vs. LITE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Applied Optoelectronics, Inc. (AAOI) and Lumentum Holdings Inc. (LITE). The values are adjusted to include any dividend payments, if applicable.

AAOI vs. LITE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAOI Applied Optoelectronics, Inc.	142.66%	-5.43%	90.79%	922.22%	-63.23%	-39.60%	-28.37%	-23.01%	-59.20%	61.35%
LITE Lumentum Holdings Inc.	90.66%	339.06%	60.15%	0.48%	-50.68%	11.57%	19.55%	88.76%	-14.09%	26.52%

Fundamentals

Market Cap AAOI : $5.95B LITE : $58.40B
EPS AAOI : -$0.60 LITE : $3.23
PS Ratio AAOI : 11.78 LITE : 25.97
PB Ratio AAOI : 8.11 LITE : 68.98
Total Revenue (TTM) AAOI : $455.72M LITE : $2.11B
Gross Profit (TTM) AAOI : $136.91M LITE : $704.00M
EBITDA (TTM) AAOI : -$26.01M LITE : $171.40M

Returns By Period

In the year-to-date period, AAOI achieves a 142.66% return, which is significantly higher than LITE's 90.66% return. Over the past 10 years, AAOI has underperformed LITE with an annualized return of 18.85%, while LITE has yielded a comparatively higher 38.75% annualized return.

AAOI

• 1D: -0.70%
• 1M: 0.43%
• YTD: 142.66%
• 6M: 226.22%
• 1Y: 451.07%
• 3Y*: 237.01%
• 5Y*: 57.17%
• 10Y*: 18.85%

LITE

• 1D: 7.33%
• 1M: 0.26%
• YTD: 90.66%
• 6M: 331.91%
• 1Y: 1,027.30%
• 3Y*: 135.20%
• 5Y*: 49.99%
• 10Y*: 38.75%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Return for Risk

AAOI vs. LITE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AAOI

AAOI Risk / Return Rank: 96
AAOI Sharpe Ratio Rank: 98
AAOI Sortino Ratio Rank: 95
AAOI Omega Ratio Rank: 91
AAOI Calmar Ratio Rank: 98
AAOI Martin Ratio Rank: 98

LITE

LITE Risk / Return Rank: 99
LITE Sharpe Ratio Rank: 100
LITE Sortino Ratio Rank: 99
LITE Omega Ratio Rank: 98
LITE Calmar Ratio Rank: 100
LITE Martin Ratio Rank: 100

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AAOI vs. LITE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Applied Optoelectronics, Inc. (AAOI) and Lumentum Holdings Inc. (LITE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AAOI	LITE	Difference
Sharpe ratio Return per unit of total volatility	3.34	12.35	-9.02
Sortino ratio Return per unit of downside risk	3.46	5.48	-2.02
Omega ratio Gain probability vs. loss probability	1.41	1.80	-0.39
Calmar ratio Return relative to maximum drawdown	8.74	35.64	-26.90
Martin ratio Return relative to average drawdown	22.85	122.01	-99.16
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AAOI vs. LITE - Sharpe Ratio Comparison

The current AAOI Sharpe Ratio is 3.34, which is lower than the LITE Sharpe Ratio of 12.35. The chart below compares the historical Sharpe Ratios of AAOI and LITE, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	AAOI	LITE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.34	12.35	-9.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.50	0.87	-0.38
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.20	0.70	-0.51
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.72	-0.51

Correlation

The correlation between AAOI and LITE is 0.44, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

AAOI vs. LITE - Dividend Comparison

Neither AAOI nor LITE has paid dividends to shareholders.

Tickers have no history of dividend payments

Drawdowns

AAOI vs. LITE - Drawdown Comparison

The maximum AAOI drawdown since its inception was -98.49%, which is greater than LITE's maximum drawdown of -66.89%. Use the drawdown chart below to compare losses from any high point for AAOI and LITE.

Drawdown Indicators

	AAOI	LITE	Difference
Max Drawdown Largest peak-to-trough decline	-98.49%	-66.89%	-31.60%
Max Drawdown (1Y) Largest decline over 1 year	-47.64%	-28.70%	-18.94%
Max Drawdown (5Y) Largest decline over 5 years	-83.07%	-66.48%	-16.59%
Max Drawdown (10Y) Largest decline over 10 years	-98.49%	-66.89%	-31.60%
Current Drawdown Current decline from peak	-33.40%	-12.37%	-21.03%
Average Drawdown Average peak-to-trough decline	-66.56%	-23.45%	-43.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.22%	8.38%	+9.84%

Volatility

AAOI vs. LITE - Volatility Comparison

Applied Optoelectronics, Inc. (AAOI) has a higher volatility of 47.04% compared to Lumentum Holdings Inc. (LITE) at 36.84%. This indicates that AAOI's price experiences larger fluctuations and is considered to be riskier than LITE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAOI	LITE	Difference
Volatility (1M) Calculated over the trailing 1-month period	47.04%	36.84%	+10.20%
Volatility (6M) Calculated over the trailing 6-month period	103.13%	70.39%	+32.74%
Volatility (1Y) Calculated over the trailing 1-year period	136.55%	84.05%	+52.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	115.78%	57.67%	+58.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	96.78%	55.23%	+41.55%

Financials

AAOI vs. LITE - Profitability Comparison

The chart below illustrates the profitability comparison between Applied Optoelectronics, Inc. and Lumentum Holdings Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

AAOI - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Applied Optoelectronics, Inc. reported a gross profit of 41.95M and revenue of 134.27M. Therefore, the gross margin over that period was 31.2%.

LITE - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Lumentum Holdings Inc. reported a gross profit of 240.10M and revenue of 665.50M. Therefore, the gross margin over that period was 36.1%.

AAOI - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Applied Optoelectronics, Inc. reported an operating income of -11.50M and revenue of 134.27M, resulting in an operating margin of -8.6%.

LITE - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Lumentum Holdings Inc. reported an operating income of 64.30M and revenue of 665.50M, resulting in an operating margin of 9.7%.

AAOI - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Applied Optoelectronics, Inc. reported a net income of -2.02M and revenue of 134.27M, resulting in a net margin of -1.5%.

LITE - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Lumentum Holdings Inc. reported a net income of 78.20M and revenue of 665.50M, resulting in a net margin of 11.8%.