LITE vs. AAOI
LITE (Lumentum Holdings Inc.) and AAOI (Applied Optoelectronics, Inc.) are both stocks. Both operate in the Communication Equipment industry within the Technology sector. Over the past 10 years, LITE returned 43.45%/yr vs 33.09%/yr for AAOI. At a 0.45 correlation, their price movements are largely independent.
Performance
LITE vs. AAOI - Performance Comparison
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Returns By Period
In the year-to-date period, LITE achieves a 142.53% return, which is significantly lower than AAOI's 391.19% return. Over the past 10 years, LITE has outperformed AAOI with an annualized return of 43.45%, while AAOI has yielded a comparatively lower 33.09% annualized return.
LITE
- 1D
- 5.17%
- 1M
- -5.59%
- YTD
- 142.53%
- 6M
- 129.28%
- 1Y
- 897.02%
- 3Y*
- 152.86%
- 5Y*
- 61.67%
- 10Y*
- 43.45%
AAOI
- 1D
- 5.80%
- 1M
- -5.65%
- YTD
- 391.19%
- 6M
- 337.98%
- 1Y
- 630.19%
- 3Y*
- 240.43%
- 5Y*
- 82.93%
- 10Y*
- 33.09%
LITE vs. AAOI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LITE Lumentum Holdings Inc. | 142.53% | 339.06% | 60.15% | 0.48% | -50.68% | 11.57% | 19.55% | 88.76% | -14.09% | 26.52% |
AAOI Applied Optoelectronics, Inc. | 391.19% | -5.43% | 90.79% | 922.22% | -63.23% | -39.60% | -28.37% | -23.01% | -59.20% | 61.35% |
Correlation
The correlation between LITE and AAOI is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.61 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.49 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Aug 4, 2015 | 0.45 |
The correlation between LITE and AAOI shifts across timeframes, from 0.45 (all time) to 0.61 (1 year), reflecting how their relationship changes across market environments.
Fundamentals
LITE:
$86.00B
AAOI:
$13.01B
LITE:
$5.26
AAOI:
-$0.65
LITE:
30.02
AAOI:
22.49
LITE:
28.92
AAOI:
11.76
LITE:
$2.49B
AAOI:
$507.00M
LITE:
$938.50M
AAOI:
$150.29M
LITE:
$470.10M
AAOI:
-$26.44M
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Return for Risk
LITE vs. AAOI — Risk / Return Rank
LITE
AAOI
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.
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.
| LITE | AAOI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +5.80 | ||
| Sortino ratioReturn per unit of downside risk | +1.36 | ||
| Omega ratioGain probability vs. loss probability | 1.68 | 1.44 | +0.24 |
| Calmar ratioReturn relative to maximum drawdown | 31.57 | 13.35 | +18.22 |
| Martin ratioReturn relative to average drawdown | 111.29 | 36.26 | +75.03 |
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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.
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Drawdown Indicators
| LITE | AAOI | Difference | |
|---|---|---|---|
Max DrawdownLargest 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 (3Y)Largest decline over 3 years | -50.63% | -77.17% | +26.54% |
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 DrawdownCurrent decline from peak | -15.11% | -23.25% | +8.14% |
Average DrawdownAverage peak-to-trough decline | -23.56% | -65.60% | +42.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 8.13% | 17.51% | -9.38% |
Volatility
LITE vs. AAOI - Volatility Comparison
The current volatility for Lumentum Holdings Inc. (LITE) is 28.51%, while Applied Optoelectronics, Inc. (AAOI) has a volatility of 42.19%. 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.
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Volatility by Period
| LITE | AAOI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 28.51% | 42.19% | -13.68% |
Volatility (6M)Calculated over the trailing 6-month period | 68.81% | 109.89% | -41.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 87.18% | 138.13% | -50.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 60.18% | 119.66% | -59.48% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 56.72% | 98.48% | -41.76% |
Dividends
LITE vs. AAOI - Dividend Comparison
Neither LITE nor AAOI has paid dividends to shareholders.
Financials
LITE vs. AAOI - Financials Comparison
This section allows you to compare key financial metrics between Lumentum Holdings Inc. and Applied Optoelectronics, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
LITE vs. AAOI - Profitability Comparison
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%.
AAOI - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Applied Optoelectronics, Inc. reported a gross profit of 43.92M and revenue of 151.14M. Therefore, the gross margin over that period was 29.1%.
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%.
AAOI - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Applied Optoelectronics, Inc. reported an operating income of -12.99M and revenue of 151.14M, 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 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%.
AAOI - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Applied Optoelectronics, Inc. reported a net income of -14.28M and revenue of 151.14M, resulting in a net margin of -9.5%.
Frequently Asked Questions
LITE and AAOI have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AAOI has higher volatility (42.19%) compared to LITE (28.51%). In terms of maximum drawdown, LITE dropped -66.89% vs AAOI's -98.49%.
LITE currently has the higher Sharpe Ratio (10.42 vs 4.61), 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.
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