LITE vs. AAOI

Last updated Apr 1, 2026

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

Performance

LITE vs. AAOI - Performance Comparison

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

LITE vs. AAOI - Yearly Performance Comparison

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

Fundamentals

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

Returns By Period

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

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%

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%

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

Return for Risk

LITE vs. AAOI — Risk / Return Rank

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

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

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

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.

LITE vs. AAOI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Lumentum Holdings Inc. (LITE) and Applied Optoelectronics, Inc. (AAOI). 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.

	LITE	AAOI	Difference
Sharpe ratio Return per unit of total volatility	12.35	3.34	+9.02
Sortino ratio Return per unit of downside risk	5.48	3.46	+2.02
Omega ratio Gain probability vs. loss probability	1.80	1.41	+0.39
Calmar ratio Return relative to maximum drawdown	35.64	8.74	+26.90
Martin ratio Return relative to average drawdown	122.01	22.85	+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.

LITE vs. AAOI - Sharpe Ratio Comparison

The current LITE Sharpe Ratio is 12.35, which is higher than the AAOI Sharpe Ratio of 3.34. The chart below compares the historical Sharpe Ratios of LITE and AAOI, 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

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

Correlation

The correlation between LITE and AAOI 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

LITE vs. AAOI - Dividend Comparison

Neither LITE nor AAOI has paid dividends to shareholders.

Tickers have no history of dividend payments

Drawdowns

LITE vs. AAOI - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

LITE vs. AAOI - Volatility Comparison

The current volatility for Lumentum Holdings Inc. (LITE) is 36.84%, while Applied Optoelectronics, Inc. (AAOI) has a volatility of 47.04%. This indicates that LITE experiences smaller price fluctuations and is considered to be less risky than AAOI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

Financials

LITE vs. AAOI - Profitability Comparison

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

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 - 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 - 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 - 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 - 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%.

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%.