AOS vs. LULU

Last updated Jun 13, 2026

AOS (A. O. Smith Corporation) and LULU (Lululemon Athletica Inc.) are both stocks. AOS operates in Specialty Industrial Machinery (Industrials), while LULU operates in Apparel Retail (Consumer Cyclical). Over the past 10 years, AOS returned 5.40%/yr vs 5.37%/yr for LULU. At a 0.39 correlation, their price movements are largely independent.

Performance

AOS vs. LULU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in A. O. Smith Corporation (AOS) and Lululemon Athletica Inc. (LULU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AOS achieves a -10.72% return, which is significantly higher than LULU's -42.85% return. Both investments have delivered pretty close results over the past 10 years, with AOS having a 5.40% annualized return and LULU not far behind at 5.37%.

AOS

• 1D: 0.72%
• 1M: 5.48%
• YTD: -10.72%
• 6M: -13.11%
• 1Y: -5.46%
• 3Y*: -3.46%
• 5Y*: -1.16%
• 10Y*: 5.40%

LULU

• 1D: -2.52%
• 1M: -0.31%
• YTD: -42.85%
• 6M: -42.05%
• 1Y: -50.33%
• 3Y*: -31.43%
• 5Y*: -18.89%
• 10Y*: 5.37%

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

AOS vs. LULU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AOS A. O. Smith Corporation	-10.72%	0.07%	-15.92%	47.30%	-32.07%	59.28%	17.46%	13.65%	-29.35%	30.78%
LULU Lululemon Athletica Inc.	-42.85%	-45.66%	-25.21%	59.59%	-18.16%	12.48%	50.23%	90.50%	54.74%	20.93%

Correlation

The correlation between AOS and LULU is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.41
Correlation (10Y) Calculated over the trailing 10-year period	0.36
Correlation (All Time) Calculated using the full available price history since Jul 27, 2007	0.39

Fundamentals

Market Cap AOS : $8.22B LULU : $13.72B
EPS AOS : $3.75 LULU : $12.35
PE Ratio AOS : 15.76 LULU : 9.62
PEG Ratio AOS : 0.64 LULU : 0.47
PS Ratio AOS : 2.18 LULU : 1.25
PB Ratio AOS : 3.81 LULU : 2.73
Total Revenue (TTM) AOS : $3.81B LULU : $11.20B
Gross Profit (TTM) AOS : $1.48B LULU : $6.24B
EBITDA (TTM) AOS : $794.70M LULU : $2.44B

Return for Risk

AOS vs. LULU — Risk / Return Rank

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

AOS

AOS Risk / Return Rank: 32
AOS Sharpe Ratio Rank: 33
AOS Sortino Ratio Rank: 28
AOS Omega Ratio Rank: 28
AOS Calmar Ratio Rank: 36
AOS Martin Ratio Rank: 34

LULU

LULU Risk / Return Rank: 3
LULU Sharpe Ratio Rank: 3
LULU Sortino Ratio Rank: 4
LULU Omega Ratio Rank: 4
LULU Calmar Ratio Rank: 3
LULU Martin Ratio Rank: 3

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.

AOS vs. LULU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for A. O. Smith Corporation (AOS) and Lululemon Athletica Inc. (LULU). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AOS	LULU	Difference
Sharpe ratio: Return per unit of total volatility	-0.24	-1.17	+0.93
Sortino ratio: Return per unit of downside risk	-0.18	-1.74	+1.56
Omega ratio: Gain probability vs. loss probability	0.98	0.78	+0.20
Calmar ratio: Return relative to maximum drawdown	-0.20	-0.97	+0.76
Martin ratio: Return relative to average drawdown	-0.47	-1.72	+1.25

AOS vs. LULU - Sharpe Ratio Comparison

The current AOS Sharpe Ratio is -0.24, which is higher than the LULU Sharpe Ratio of -1.17. The chart below compares the historical Sharpe Ratios of AOS and LULU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AOS vs. LULU - Drawdown Comparison

The maximum AOS drawdown since its inception was -66.07%, smaller than the maximum LULU drawdown of -92.26%. Use the drawdown chart below to compare losses from any high point for AOS and LULU.

Drawdown Indicators

	AOS	LULU	Difference
Max Drawdown Largest peak-to-trough decline	-66.07%	-92.26%	+26.19%
Max Drawdown (1Y) Largest decline over 1 year	-30.29%	-53.88%	+23.59%
Max Drawdown (3Y) Largest decline over 3 years	-36.93%	-77.66%	+40.73%
Max Drawdown (5Y) Largest decline over 5 years	-42.68%	-77.66%	+34.98%
Max Drawdown (10Y) Largest decline over 10 years	-46.81%	-77.66%	+30.85%
Current Drawdown Current decline from peak	-33.20%	-76.77%	+43.57%
Average Drawdown Average peak-to-trough decline	-20.48%	-27.61%	+7.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	13.12%	30.26%	-17.14%

Volatility

AOS vs. LULU - Volatility Comparison

The current volatility for A. O. Smith Corporation (AOS) is 8.06%, while Lululemon Athletica Inc. (LULU) has a volatility of 13.47%. This indicates that AOS experiences smaller price fluctuations and is considered to be less risky than LULU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AOS	LULU	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.06%	13.47%	-5.41%
Volatility (6M) Calculated over the trailing 6-month period	19.33%	32.76%	-13.43%
Volatility (1Y) Calculated over the trailing 1-year period	25.19%	44.48%	-19.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.14%	42.22%	-15.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.09%	40.62%	-13.53%

Dividends

AOS vs. LULU - Dividend Comparison

AOS's dividend yield for the trailing twelve months is around 2.40%, while LULU has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AOS A. O. Smith Corporation	2.40%	2.06%	1.91%	1.84%	1.99%	1.23%	1.79%	1.89%	1.78%	0.91%	1.01%	0.99%
LULU Lululemon Athletica Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

AOS vs. LULU - Profitability Comparison

The chart below illustrates the profitability comparison between A. O. Smith Corporation and Lululemon Athletica Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

AOS - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, A. O. Smith Corporation reported a gross profit of 365.70M and revenue of 945.60M. Therefore, the gross margin over that period was 38.7%.

LULU - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lululemon Athletica Inc. reported a gross profit of 1.34B and revenue of 2.47B. Therefore, the gross margin over that period was 54.2%.

AOS - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, A. O. Smith Corporation reported an operating income of 161.80M and revenue of 945.60M, resulting in an operating margin of 17.1%.

LULU - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lululemon Athletica Inc. reported an operating income of 276.95M and revenue of 2.47B, resulting in an operating margin of 11.2%.

AOS - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, A. O. Smith Corporation reported a net income of 118.00M and revenue of 945.60M, resulting in a net margin of 12.5%.

LULU - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lululemon Athletica Inc. reported a net income of 195.05M and revenue of 2.47B, resulting in a net margin of 7.9%.

Frequently Asked Questions

Can I hold both AOS and LULU in my portfolio?

AOS and LULU have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AOS or LULU?

LULU has higher volatility (13.47%) compared to AOS (8.06%). In terms of maximum drawdown, AOS dropped -66.07% vs LULU's -92.26%.

Which has better risk-adjusted returns?

AOS currently has the higher Sharpe Ratio (-0.24 vs -1.17), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.