LITE vs. KTOS

Last updated Jun 9, 2026

LITE (Lumentum Holdings Inc.) and KTOS (Kratos Defense & Security Solutions, Inc.) are both stocks. LITE operates in Communication Equipment (Technology), while KTOS operates in Aerospace & Defense (Industrials). Over the past 10 years, LITE returned 43.30%/yr vs 30.73%/yr for KTOS. At a 0.27 correlation, their price movements are largely independent.

Performance

LITE vs. KTOS - Performance Comparison

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

Returns By Period

In the year-to-date period, LITE achieves a 142.93% return, which is significantly higher than KTOS's -23.95% return. Over the past 10 years, LITE has outperformed KTOS with an annualized return of 43.30%, while KTOS has yielded a comparatively lower 30.73% annualized return.

LITE

• 1D: 3.68%
• 1M: -0.93%
• YTD: 142.93%
• 6M: 161.38%
• 1Y: 999.19%
• 3Y*: 159.80%
• 5Y*: 62.02%
• 10Y*: 43.30%

KTOS

• 1D: -1.35%
• 1M: -0.28%
• YTD: -23.95%
• 6M: -25.06%
• 1Y: 42.65%
• 3Y*: 59.41%
• 5Y*: 16.85%
• 10Y*: 30.73%

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

LITE vs. KTOS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LITE Lumentum Holdings Inc.	142.93%	339.06%	60.15%	0.48%	-50.68%	11.57%	19.55%	88.76%	-14.09%	26.52%
KTOS Kratos Defense & Security Solutions, Inc.	-23.95%	187.76%	30.01%	96.61%	-46.80%	-29.27%	52.30%	27.82%	33.05%	43.11%

Correlation

The correlation between LITE and KTOS is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.30
Correlation (10Y) Calculated over the trailing 10-year period	0.28
Correlation (All Time) Calculated using the full available price history since Aug 5, 2015	0.27

The correlation between LITE and KTOS shifts across timeframes, from 0.11 (1 year) to 0.30 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap LITE : $86.14B KTOS : $10.36B
EPS LITE : $5.26 KTOS : $0.17
PE Ratio LITE : 170.11 KTOS : 335.24
PS Ratio LITE : 30.07 KTOS : 6.96
PB Ratio LITE : 28.97 KTOS : 3.04
Total Revenue (TTM) LITE : $2.49B KTOS : $1.42B
Gross Profit (TTM) LITE : $938.50M KTOS : $259.40M
EBITDA (TTM) LITE : $470.10M KTOS : $78.30M

Return for Risk

LITE vs. KTOS — 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: 98
LITE Omega Ratio Rank: 98
LITE Calmar Ratio Rank: 100
LITE Martin Ratio Rank: 100

KTOS

KTOS Risk / Return Rank: 60
KTOS Sharpe Ratio Rank: 62
KTOS Sortino Ratio Rank: 62
KTOS Omega Ratio Rank: 59
KTOS Calmar Ratio Rank: 58
KTOS Martin Ratio Rank: 57

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. KTOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Lumentum Holdings Inc. (LITE) and Kratos Defense & Security Solutions, Inc. (KTOS). 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	KTOS	Difference
Sharpe ratio: Return per unit of total volatility	11.76	0.60	+11.17
Sortino ratio: Return per unit of downside risk	5.52	1.28	+4.24
Omega ratio: Gain probability vs. loss probability	1.73	1.15	+0.58
Calmar ratio: Return relative to maximum drawdown	35.18	0.71	+34.47
Martin ratio: Return relative to average drawdown	134.51	1.47	+133.04
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. KTOS - Sharpe Ratio Comparison

The current LITE Sharpe Ratio is 11.76, which is higher than the KTOS Sharpe Ratio of 0.60. The chart below compares the historical Sharpe Ratios of LITE and KTOS, 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

	LITE	KTOS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	11.76	0.60	+11.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.04	0.32	+0.72
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.77	0.61	+0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.75	-0.14	+0.88

Drawdowns

LITE vs. KTOS - Drawdown Comparison

The maximum LITE drawdown since its inception was -66.89%, smaller than the maximum KTOS drawdown of -99.81%. Use the drawdown chart below to compare losses from any high point for LITE and KTOS.

Drawdown Indicators

	LITE	KTOS	Difference
Max Drawdown Largest peak-to-trough decline	-66.89%	-99.81%	+32.92%
Max Drawdown (1Y) Largest decline over 1 year	-28.70%	-60.15%	+31.45%
Max Drawdown (3Y) Largest decline over 3 years	-50.63%	-60.15%	+9.52%
Max Drawdown (5Y) Largest decline over 5 years	-66.48%	-69.39%	+2.91%
Max Drawdown (10Y) Largest decline over 10 years	-66.89%	-72.74%	+5.85%
Current Drawdown Current decline from peak	-14.97%	-96.34%	+81.37%
Average Drawdown Average peak-to-trough decline	-23.16%	-95.94%	+72.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.49%	29.04%	-21.55%

Volatility

LITE vs. KTOS - Volatility Comparison

Lumentum Holdings Inc. (LITE) has a higher volatility of 31.18% compared to Kratos Defense & Security Solutions, Inc. (KTOS) at 23.93%. This indicates that LITE's price experiences larger fluctuations and is considered to be riskier than KTOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LITE	KTOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	31.18%	23.93%	+7.25%
Volatility (6M) Calculated over the trailing 6-month period	69.07%	56.47%	+12.60%
Volatility (1Y) Calculated over the trailing 1-year period	86.01%	71.96%	+14.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	59.79%	52.22%	+7.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	56.55%	50.78%	+5.77%

Dividends

LITE vs. KTOS - Dividend Comparison

Neither LITE nor KTOS has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

LITE vs. KTOS - Profitability Comparison

The chart below illustrates the profitability comparison between Lumentum Holdings Inc. and Kratos Defense & Security Solutions, 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 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%.

KTOS - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Kratos Defense & Security Solutions, Inc. reported a gross profit of 34.70M and revenue of 371.00M. Therefore, the gross margin over that period was 9.4%.

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%.

KTOS - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Kratos Defense & Security Solutions, Inc. reported an operating income of 4.70M and revenue of 371.00M, resulting in an operating margin of 1.3%.

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%.

KTOS - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Kratos Defense & Security Solutions, Inc. reported a net income of 11.90M and revenue of 371.00M, resulting in a net margin of 3.2%.

Frequently Asked Questions

Can I hold both LITE and KTOS in my portfolio?

LITE and KTOS have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LITE or KTOS?

LITE has higher volatility (31.18%) compared to KTOS (23.93%). In terms of maximum drawdown, LITE dropped -66.89% vs KTOS's -99.81%.

Which has better risk-adjusted returns?

LITE currently has the higher Sharpe Ratio (11.76 vs 0.60), 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.