AVGO vs. LITE

Last updated Jun 4, 2026

AVGO (Broadcom Inc.) and LITE (Lumentum Holdings Inc.) are both stocks. Both are in the Technology sector — AVGO in Semiconductors, LITE in Communication Equipment. Over the past 10 years, AVGO returned 43.87%/yr vs 43.96%/yr for LITE. At a 0.47 correlation, their price movements are largely independent.

Performance

AVGO vs. LITE - Performance Comparison

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

Returns By Period

In the year-to-date period, AVGO achieves a 38.76% return, which is significantly lower than LITE's 154.48% return. Both investments have delivered pretty close results over the past 10 years, with AVGO having a 43.87% annualized return and LITE not far ahead at 43.96%.

AVGO

• 1D: -0.49%
• 1M: 15.06%
• YTD: 38.76%
• 6M: 26.42%
• 1Y: 88.09%
• 3Y*: 83.13%
• 5Y*: 61.98%
• 10Y*: 43.87%

LITE

• 1D: -8.86%
• 1M: -3.91%
• YTD: 154.48%
• 6M: 209.59%
• 1Y: 1,107.98%
• 3Y*: 160.60%
• 5Y*: 62.83%
• 10Y*: 43.96%

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

AVGO vs. LITE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AVGO Broadcom Inc.	38.76%	50.63%	110.49%	104.18%	-13.27%	56.48%	44.88%	29.05%	2.18%	48.19%
LITE Lumentum Holdings Inc.	154.48%	339.06%	60.15%	0.48%	-50.68%	11.57%	19.55%	88.76%	-14.09%	26.52%

Correlation

The correlation between AVGO and LITE is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.50
Correlation (All Time) Calculated using the full available price history since Aug 5, 2015	0.47

The correlation between AVGO and LITE has been stable across timeframes, ranging from 0.43 to 0.52 - a consistent structural relationship.

Fundamentals

Market Cap AVGO : $2.34T LITE : $90.24B
EPS AVGO : $5.12 LITE : $5.26
PE Ratio AVGO : 93.63 LITE : 178.21
PS Ratio AVGO : 34.24 LITE : 31.50
PB Ratio AVGO : 29.33 LITE : 30.35
Total Revenue (TTM) AVGO : $68.28B LITE : $2.49B
Gross Profit (TTM) AVGO : $46.31B LITE : $938.50M
EBITDA (TTM) AVGO : $36.65B LITE : $470.10M

Return for Risk

AVGO vs. LITE — Risk / Return Rank

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

AVGO

AVGO Risk / Return Rank: 84
AVGO Sharpe Ratio Rank: 88
AVGO Sortino Ratio Rank: 85
AVGO Omega Ratio Rank: 83
AVGO Calmar Ratio Rank: 82
AVGO Martin Ratio Rank: 81

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.

AVGO vs. LITE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Broadcom Inc. (AVGO) 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.

	AVGO	LITE	Difference
Sharpe ratio: Return per unit of total volatility	2.07	13.13	-11.07
Sortino ratio: Return per unit of downside risk	2.74	5.79	-3.05
Omega ratio: Gain probability vs. loss probability	1.34	1.77	-0.43
Calmar ratio: Return relative to maximum drawdown	3.09	39.02	-35.93
Martin ratio: Return relative to average drawdown	7.42	152.77	-145.35
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AVGO vs. LITE - Sharpe Ratio Comparison

The current AVGO Sharpe Ratio is 2.07, which is lower than the LITE Sharpe Ratio of 13.13. The chart below compares the historical Sharpe Ratios of AVGO and LITE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AVGO	LITE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.07	13.13	-11.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.46	1.06	+0.40
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.12	0.78	+0.34
Sharpe Ratio (All Time) Calculated using the full available price history	1.14	0.76	+0.38

Drawdowns

AVGO vs. LITE - Drawdown Comparison

The maximum AVGO drawdown since its inception was -48.30%, smaller than the maximum LITE drawdown of -66.89%. Use the drawdown chart below to compare losses from any high point for AVGO and LITE.

Drawdown Indicators

	AVGO	LITE	Difference
Max Drawdown Largest peak-to-trough decline	-48.30%	-66.89%	+18.59%
Max Drawdown (1Y) Largest decline over 1 year	-28.67%	-28.70%	+0.03%
Max Drawdown (3Y) Largest decline over 3 years	-41.15%	-50.63%	+9.48%
Max Drawdown (5Y) Largest decline over 5 years	-41.15%	-66.48%	+25.33%
Max Drawdown (10Y) Largest decline over 10 years	-48.30%	-66.89%	+18.59%
Current Drawdown Current decline from peak	-0.49%	-10.93%	+10.44%
Average Drawdown Average peak-to-trough decline	-7.97%	-23.17%	+15.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.91%	7.32%	+4.59%

Volatility

AVGO vs. LITE - Volatility Comparison

The current volatility for Broadcom Inc. (AVGO) is 11.91%, while Lumentum Holdings Inc. (LITE) has a volatility of 30.62%. This indicates that AVGO experiences smaller price fluctuations and is considered to be less risky than LITE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVGO	LITE	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.91%	30.62%	-18.71%
Volatility (6M) Calculated over the trailing 6-month period	30.70%	68.91%	-38.21%
Volatility (1Y) Calculated over the trailing 1-year period	42.95%	85.30%	-42.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	42.78%	59.65%	-16.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	39.18%	56.46%	-17.28%

Dividends

AVGO vs. LITE - Dividend Comparison

AVGO's dividend yield for the trailing twelve months is around 0.52%, while LITE has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVGO Broadcom Inc.	0.52%	0.70%	0.94%	1.71%	3.02%	2.24%	3.05%	3.54%	3.11%	1.87%	1.43%	1.13%
LITE Lumentum Holdings 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

AVGO vs. LITE - Profitability Comparison

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

AVGO - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Broadcom Inc. reported a gross profit of 13.16B and revenue of 19.31B. Therefore, the gross margin over that period was 68.1%.

LITE - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lumentum Holdings Inc. reported a gross profit of 357.00M and revenue of 808.40M. Therefore, the gross margin over that period was 44.2%.

AVGO - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Broadcom Inc. reported an operating income of 8.56B and revenue of 19.31B, resulting in an operating margin of 44.3%.

LITE - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lumentum Holdings Inc. reported an operating income of 174.50M and revenue of 808.40M, resulting in an operating margin of 21.6%.

AVGO - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Broadcom Inc. reported a net income of 7.35B and revenue of 19.31B, resulting in a net margin of 38.1%.

LITE - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lumentum Holdings Inc. reported a net income of 144.20M and revenue of 808.40M, resulting in a net margin of 17.8%.

Frequently Asked Questions

Can I hold both AVGO and LITE in my portfolio?

AVGO and LITE have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AVGO or LITE?

LITE has higher volatility (30.62%) compared to AVGO (11.91%). In terms of maximum drawdown, AVGO dropped -48.30% vs LITE's -66.89%.

Which has better risk-adjusted returns?

LITE currently has the higher Sharpe Ratio (13.13 vs 2.07), 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.