TSEM vs. LITE

Last updated Jun 13, 2026

TSEM (Tower Semiconductor Ltd) and LITE (Lumentum Holdings Inc.) are both stocks. Both are in the Technology sector — TSEM in Semiconductors, LITE in Communication Equipment. Over the past 10 years, TSEM returned 35.70%/yr vs 43.74%/yr for LITE. At a 0.45 correlation, their price movements are largely independent.

Performance

TSEM vs. LITE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Tower Semiconductor Ltd (TSEM) 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, TSEM achieves a 123.91% return, which is significantly lower than LITE's 150.02% return. Over the past 10 years, TSEM has underperformed LITE with an annualized return of 35.70%, while LITE has yielded a comparatively higher 43.74% annualized return.

TSEM

• 1D: 1.77%
• 1M: -4.04%
• YTD: 123.91%
• 6M: 121.05%
• 1Y: 590.26%
• 3Y*: 86.93%
• 5Y*: 56.98%
• 10Y*: 35.70%

LITE

• 1D: 3.59%
• 1M: -5.06%
• YTD: 150.02%
• 6M: 184.13%
• 1Y: 1,017.52%
• 3Y*: 158.28%
• 5Y*: 62.72%
• 10Y*: 43.74%

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

TSEM vs. LITE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TSEM Tower Semiconductor Ltd	123.91%	127.96%	68.77%	-29.35%	8.87%	53.68%	7.32%	63.23%	-56.75%	79.09%
LITE Lumentum Holdings Inc.	150.02%	339.06%	60.15%	0.48%	-50.68%	11.57%	19.55%	88.76%	-14.09%	26.52%

Correlation

The correlation between TSEM and LITE is 0.55, 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	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (10Y) Calculated over the trailing 10-year period	0.48
Correlation (All Time) Calculated using the full available price history since Aug 4, 2015	0.45

The correlation between TSEM and LITE shifts across timeframes, from 0.45 (all time) to 0.55 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap TSEM : $30.06B LITE : $88.65B
EPS TSEM : $2.15 LITE : $5.26
PE Ratio TSEM : 122.04 LITE : 175.08
PS Ratio TSEM : 18.47 LITE : 30.95
PB Ratio TSEM : 10.11 LITE : 29.82
Total Revenue (TTM) TSEM : $1.62B LITE : $2.49B
Gross Profit (TTM) TSEM : $401.63M LITE : $938.50M
EBITDA (TTM) TSEM : $571.93M LITE : $470.10M

Return for Risk

TSEM vs. LITE — Risk / Return Rank

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

TSEM

TSEM Risk / Return Rank: 99
TSEM Sharpe Ratio Rank: 100
TSEM Sortino Ratio Rank: 99
TSEM Omega Ratio Rank: 98
TSEM Calmar Ratio Rank: 99
TSEM Martin Ratio Rank: 100

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.

TSEM vs. LITE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Tower Semiconductor Ltd (TSEM) 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.

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.

	TSEM	LITE	Difference
Sharpe ratio: Return per unit of total volatility	8.13	11.43	-3.31
Sortino ratio: Return per unit of downside risk	5.73	5.42	+0.31
Omega ratio: Gain probability vs. loss probability	1.74	1.71	+0.03
Calmar ratio: Return relative to maximum drawdown	22.31	34.43	-12.12
Martin ratio: Return relative to average drawdown	77.52	126.26	-48.74

TSEM vs. LITE - Sharpe Ratio Comparison

The current TSEM Sharpe Ratio is 8.13, which is comparable to the LITE Sharpe Ratio of 11.43. The chart below compares the historical Sharpe Ratios of TSEM 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.

Drawdowns

TSEM vs. LITE - Drawdown Comparison

The maximum TSEM drawdown since its inception was -99.75%, which is greater than LITE's maximum drawdown of -66.89%. Use the drawdown chart below to compare losses from any high point for TSEM and LITE.

Drawdown Indicators

	TSEM	LITE	Difference
Max Drawdown Largest peak-to-trough decline	-99.75%	-66.89%	-32.86%
Max Drawdown (1Y) Largest decline over 1 year	-25.04%	-28.70%	+3.66%
Max Drawdown (3Y) Largest decline over 3 years	-46.78%	-50.63%	+3.85%
Max Drawdown (5Y) Largest decline over 5 years	-55.39%	-66.48%	+11.09%
Max Drawdown (10Y) Largest decline over 10 years	-62.28%	-66.89%	+4.61%
Current Drawdown Current decline from peak	-56.05%	-12.49%	-43.56%
Average Drawdown Average peak-to-trough decline	-85.38%	-23.57%	-61.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.20%	7.81%	-0.61%

Volatility

TSEM vs. LITE - Volatility Comparison

The current volatility for Tower Semiconductor Ltd (TSEM) is 25.08%, while Lumentum Holdings Inc. (LITE) has a volatility of 28.12%. This indicates that TSEM 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

	TSEM	LITE	Difference
Volatility (1M) Calculated over the trailing 1-month period	25.08%	28.12%	-3.04%
Volatility (6M) Calculated over the trailing 6-month period	55.81%	69.73%	-13.92%
Volatility (1Y) Calculated over the trailing 1-year period	68.83%	86.47%	-17.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	47.30%	59.94%	-12.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	43.61%	56.62%	-13.01%

Dividends

TSEM vs. LITE - Dividend Comparison

Neither TSEM nor LITE has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

TSEM vs. LITE - Profitability Comparison

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

TSEM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Tower Semiconductor Ltd reported a gross profit of 110.95M and revenue of 413.63M. Therefore, the gross margin over that period was 26.8%.

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%.

TSEM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Tower Semiconductor Ltd reported an operating income of 64.57M and revenue of 413.63M, resulting in an operating margin of 15.6%.

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%.

TSEM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Tower Semiconductor Ltd reported a net income of 65.03M and revenue of 413.63M, resulting in a net margin of 15.7%.

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 TSEM and LITE in my portfolio?

TSEM and LITE have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TSEM or LITE?

LITE has higher volatility (28.12%) compared to TSEM (25.08%). In terms of maximum drawdown, TSEM dropped -99.75% vs LITE's -66.89%.

Which has better risk-adjusted returns?

LITE currently has the higher Sharpe Ratio (11.43 vs 8.13), 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.