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The strategic rivalry between Analog Devices, Inc. and GLOBALFOUNDRIES Inc. shapes the semiconductor sector’s evolution. Analog Devices specializes in analog and mixed-signal integrated circuits, emphasizing high-margin, technology-driven solutions. GLOBALFOUNDRIES focuses on capital-intensive wafer fabrication services, competing on scale and manufacturing prowess. This analysis seeks to identify which firm’s operational model delivers superior risk-adjusted returns for a diversified portfolio amid ongoing industry disruption and technological advancement.

Analog Devices vs GLOBALFOUNDRIES: Company Comparison
Table of contents

Companies Overview

Analog Devices and GLOBALFOUNDRIES anchor critical segments of the semiconductor industry with distinct value propositions.

Analog Devices, Inc.: Precision Analog and Mixed-Signal Innovator

Analog Devices dominates the analog, mixed-signal, and digital signal processing markets. Its core revenue stems from integrated circuits that convert and condition real-world signals across industrial, automotive, and communication sectors. In 2026, it sharpens its focus on high-performance amplifiers and power management solutions, reinforcing its competitive edge in precision engineering.

GLOBALFOUNDRIES Inc.: Leading Semiconductor Foundry Service

GLOBALFOUNDRIES stands as a major semiconductor foundry, manufacturing chips for mobile, networking, and power management applications. It earns revenue by fabricating integrated circuits for a diverse client base worldwide. In 2026, its strategic emphasis lies on scaling wafer fabrication technologies to meet growing demand in mainstream semiconductor markets.

Strategic Collision: Similarities & Divergences

Both firms operate within the semiconductor realm but diverge sharply in approach. Analog Devices pursues a product innovation model focused on proprietary mixed-signal ICs, while GLOBALFOUNDRIES competes as an open foundry specializing in manufacturing for third-party designs. The primary battleground is the increasingly complex semiconductor supply chain. Their distinct models create different risk and growth profiles for investors.

Income Statement Comparison

This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:

income comparison
MetricAnalog Devices, Inc. (ADI)GLOBALFOUNDRIES Inc. (GFS)
Revenue11B6.75B
Cost of Revenue5B5.1B
Operating Expenses3B1.87B
Gross Profit6B1.65B
EBITDA5B1.5B
EBIT3B-64M
Interest Expense318M145M
Net Income2.27B-265M
EPS4.59-0.48
Fiscal Year20252024

Income Statement Analysis: The Bottom-Line Duel

This income statement comparison will expose which company runs a more efficient and profitable business engine through recent financial performance.

Analog Devices, Inc. Analysis

ADI’s revenue grew 16.9% from 2024 to 2025, reaching $11B, while net income soared 38.7% to $2.27B. Its gross margin remains robust at 54.7%, and net margin stands strong at 20.6%. The company demonstrated remarkable operational efficiency and margin expansion, reflecting disciplined cost control and solid market demand.

GLOBALFOUNDRIES Inc. Analysis

GFS’s revenue declined 8.7% to $6.75B in 2024, with net losses widening to $265M. Gross margin is modest at 24.5%, but the net margin remains negative at -3.9%. The company faces margin pressure and operational challenges, as indicated by a negative EBIT margin of -1%, signaling inefficiency and weak profitability momentum.

Margin Strength vs. Revenue Quality

ADI’s expanding margins and consistent revenue growth clearly outperform GFS’s shrinking top line and sustained losses. ADI delivers superior profitability and operational discipline, making it the fundamental winner. Investors typically favor ADI’s profile for its proven ability to convert revenue into strong earnings.

Financial Ratios Comparison

These vital ratios act as a diagnostic tool to expose underlying fiscal health, valuation premiums, and capital efficiency for the two companies analyzed:

RatiosAnalog Devices, Inc. (ADI)GLOBALFOUNDRIES Inc. (GFS)
ROE6.7%-2.5%
ROIC5.5%-1.5%
P/E51.1-89.5
P/B3.422.20
Current Ratio2.192.11
Quick Ratio1.681.57
D/E0.260.22
Debt-to-Assets18.1%13.8%
Interest Coverage9.45-1.48
Asset Turnover0.230.40
Fixed Asset Turnover3.320.82
Payout Ratio85%0%
Dividend Yield1.66%0%
Fiscal Year20252024

Efficiency & Valuation Duel: The Vital Signs

Financial ratios serve as a company’s DNA, exposing hidden risks and operational excellence critical for investment insight.

Analog Devices, Inc.

ADI demonstrates solid profitability with a net margin of 20.58%, though its ROE at 6.7% lags behind industry expectations. The stock trades at a stretched P/E of 51.05, signaling expensive valuation. ADI maintains a balanced capital structure and returns value via a modest 1.66% dividend yield, supported by steady R&D investments reflecting growth focus.

GLOBALFOUNDRIES Inc.

GFS posts negative profitability metrics, including a -3.93% net margin and -2.46% ROE, reflecting operational challenges. Despite a favorable negative P/E due to losses, its valuation appears less stretched with a P/B of 2.2. The company pays no dividends, instead channeling funds into capex and R&D, though interest coverage remains a clear red flag.

Premium Valuation vs. Operational Safety

ADI offers a better balance with favorable liquidity and consistent profitability, despite a high valuation multiple. GFS’s weaker profitability and coverage ratios increase risk, though its valuation is more reasonable. Investors prioritizing stability may lean toward ADI’s profile, while risk-tolerant investors might consider GFS’s growth potential.

Which one offers the Superior Shareholder Reward?

I compare Analog Devices (ADI) and GLOBALFOUNDRIES (GFS) on dividends, payout ratios, and buybacks. ADI pays a 1.66% yield with a high 85% payout ratio, showing strong free cash flow coverage and consistent buybacks exceeding $3B annually. GFS pays no dividends and focuses on reinvestment, with modest buybacks under $200M. ADI’s steady dividends and aggressive buybacks offer more sustainable, shareholder-friendly returns. GFS’s reinvestment strategy suits high-growth but carries execution risk. I conclude ADI delivers a superior total return profile for 2026 investors.

Comparative Score Analysis: The Strategic Profile

The radar chart reveals the fundamental DNA and trade-offs of Analog Devices, Inc. and GLOBALFOUNDRIES Inc., highlighting their financial strengths and weaknesses:

scores comparison

Analog Devices shows moderate strength across DCF, ROE, and ROA, but faces valuation pressure with a very unfavorable P/E score. GLOBALFOUNDRIES excels in debt management and price-to-book valuation but lags significantly in profitability metrics. Analog Devices presents a more balanced profile, while GLOBALFOUNDRIES relies heavily on valuation and leverage advantages.

Bankruptcy Risk: Solvency Showdown

Analog Devices’ Altman Z-Score of 7.14 far exceeds GLOBALFOUNDRIES’ 3.01, indicating a stronger buffer against bankruptcy risks in this market cycle:

altman z score comparison

Financial Health: Quality of Operations

Analog Devices scores a strong 7 on the Piotroski F-Score, outperforming GLOBALFOUNDRIES’ average 6, suggesting better operational quality and fewer red flags in internal metrics:

piotroski f score comparison

How are the two companies positioned?

This section dissects the operational DNA of ADI and GFS by comparing their revenue distribution by segment and internal dynamics. The goal is to confront their economic moats and identify which model offers the most resilient competitive advantage today.

Revenue Segmentation: The Strategic Mix

The following visual comparison dissects how Analog Devices, Inc. and GLOBALFOUNDRIES Inc. diversify their income streams and where their primary sector bets lie:

revenue by segment comparison

Analog Devices anchors its revenue in Industrial at $4.3B, supported by Automotive ($2.8B) and Consumer ($1.2B), showing a well-balanced portfolio. GLOBALFOUNDRIES pivots heavily on Water Fabrication at $6.1B, with Engineering Services trailing at $652M. ADI’s diversification reduces reliance risk and enables ecosystem lock-in. GFS’s concentration in fabrication heightens exposure to semiconductor cycle swings but underscores infrastructure dominance.

Strengths and Weaknesses Comparison

This table compares the strengths and weaknesses of Analog Devices, Inc. (ADI) and GLOBALFOUNDRIES Inc. (GFS):

ADI Strengths

  • Diverse revenue streams across Automotive, Communications, Consumer, and Industrial sectors
  • Favorable net margin at 20.58%
  • Strong liquidity with current ratio 2.19 and quick ratio 1.68
  • Low debt-to-assets at 18.05% supports financial stability
  • Significant global presence including US, China, and Europe

GFS Strengths

  • Concentrated but sizable Water Fabrication segment with $6B+ revenue
  • Favorable price-to-earnings ratio despite losses
  • Solid liquidity with current ratio 2.11 and quick ratio 1.57
  • Low debt-to-assets at 13.81% reduces financial risk
  • Strong US market presence with $3.7B revenue in 2024

ADI Weaknesses

  • Unfavorable return on equity at 6.7% below cost of capital
  • Price-to-book of 3.42 signals possible overvaluation
  • Unfavorable asset turnover at 0.23 suggests lower efficiency
  • ROIC below WACC at 5.55% indicates modest capital returns
  • High PE ratio of 51.05 may dampen valuation appeal

GFS Weaknesses

  • Negative net margin of -3.93% and negative ROE and ROIC indicate poor profitability
  • Unfavorable weighted average cost of capital at 10.37%
  • Negative interest coverage ratio at -0.44 signals risk in debt servicing
  • Weak fixed asset turnover at 0.82 and asset turnover at 0.4 reflect operational inefficiency
  • No dividend yield limits income appeal

Overall, ADI demonstrates broader diversification and stronger profitability metrics, yet faces valuation and efficiency challenges. GFS struggles with profitability and operational efficiency despite solid liquidity and US market exposure. These factors critically influence each company’s strategic financial positioning.

The Moat Duel: Analyzing Competitive Defensibility

A structural moat is the only reliable barrier that protects long-term profits from relentless competitive pressures. Let’s dissect the moats of two semiconductor players:

Analog Devices, Inc. (ADI): Intangible Assets and Product Expertise

ADI’s moat stems from deep intangible assets and technical know-how in analog and mixed-signal ICs. This translates into stable gross margins near 55% and rising profitability. Its growing ROIC trend signals improving capital efficiency, though it’s currently below WACC. New automotive and industrial applications could reinforce the moat in 2026.

GLOBALFOUNDRIES Inc. (GFS): Scale and Manufacturing Capacity

GFS relies on scale and wafer fabrication capacity—a cost advantage distinct from ADI’s tech-driven moat. Despite a wider manufacturing footprint, GFS struggles with negative EBIT and net margins, reflecting value erosion. However, its ROIC is improving sharply, hinting at potential future value creation if operational issues resolve.

Verdict: Intangible Assets vs. Scale Efficiency

ADI’s moat is deeper due to specialized technology and better margin stability, despite current value destruction. GFS shows promise with improving ROIC but lacks profitability today. ADI is better positioned to defend market share through innovation and expanding applications.

Which stock offers better returns?

The past year shows stark contrasts in price action and trading dynamics between Analog Devices, Inc. and GLOBALFOUNDRIES Inc., highlighting divergent investor sentiment and momentum.

stock price comparison

Trend Comparison

Analog Devices, Inc. (ADI) exhibits a strong bullish trend with a 58.66% price increase over 12 months. The trend accelerates, peaking at 310.88, with notable volatility (std deviation 26.38).

GLOBALFOUNDRIES Inc. (GFS) faces a bearish trend, down 19.48% over the same period despite accelerating momentum. The stock reached a high of 55.5 but shows lower volatility (std deviation 6.18).

ADI outperforms GFS significantly, delivering the highest market returns and stronger upward momentum over the past year.

Target Prices

Analyst consensus presents a promising outlook for both Analog Devices, Inc. and GLOBALFOUNDRIES Inc.

CompanyTarget LowTarget HighConsensus
Analog Devices, Inc.270375316
GLOBALFOUNDRIES Inc.374038.5

The consensus target for Analog Devices sits slightly above its current price of $311, signaling moderate upside potential. GLOBALFOUNDRIES trades above its consensus target of $38.5, indicating possible near-term price pressure.

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How do institutions grade them?

Analog Devices, Inc. Grades

Here are the latest grades from reputable financial institutions for Analog Devices, Inc.:

Grading CompanyActionNew GradeDate
SusquehannamaintainPositive2026-01-22
B of A SecuritiesmaintainBuy2026-01-21
StifelmaintainBuy2026-01-16
OppenheimermaintainOutperform2026-01-16
Wells FargoupgradeOverweight2026-01-15
CitigroupmaintainBuy2026-01-15
KeybancmaintainOverweight2026-01-13
Truist SecuritiesmaintainHold2025-12-19
UBSmaintainBuy2025-12-08
Truist SecuritiesmaintainHold2025-11-26

GLOBALFOUNDRIES Inc. Grades

Below are the recent grades from recognized grading firms for GLOBALFOUNDRIES Inc.:

Grading CompanyActionNew GradeDate
CitigroupmaintainNeutral2026-01-15
WedbushdowngradeNeutral2025-12-31
B of A SecuritiesmaintainUnderperform2025-12-04
Evercore ISI GroupmaintainOutperform2025-11-13
WedbushmaintainOutperform2025-11-13
CitigroupmaintainNeutral2025-11-13
JP MorganmaintainNeutral2025-11-13
B of A SecuritiesdowngradeUnderperform2025-10-13
WedbushmaintainOutperform2025-08-06
Morgan StanleymaintainEqual Weight2025-08-06

Which company has the best grades?

Analog Devices commands stronger grades, with multiple Buy and Outperform ratings and recent upgrades. GLOBALFOUNDRIES mostly holds Neutral to Underperform grades, indicating more cautious investor sentiment. This disparity may influence risk-averse investors.

Risks specific to each company

The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:

1. Market & Competition

Analog Devices, Inc. (ADI)

  • Operates in a highly competitive semiconductor sector with strong analog and mixed-signal niches.

GLOBALFOUNDRIES Inc. (GFS)

  • Faces intense foundry competition from industry giants with less product differentiation.

2. Capital Structure & Debt

ADI

  • Maintains a conservative debt-to-equity ratio (0.26) with strong interest coverage (9.54).

GFS

  • Low debt ratio (0.22) but negative interest coverage (-0.44) signals difficulty servicing debt.

3. Stock Volatility

ADI

  • Beta near 1.03 indicates stock moves broadly in line with the market.

GFS

  • Higher beta (1.49) suggests greater sensitivity to market swings and elevated volatility.

ADI

  • Subject to global semiconductor regulations; no major legal issues reported.

GFS

  • Faces complex compliance demands as a foundry operating globally, increasing regulatory risk.

5. Supply Chain & Operations

ADI

  • Integrated design and manufacturing help control supply chain risks.

GFS

  • Dependent on wafer fabrication capacity and external suppliers, raising operational risks.

6. ESG & Climate Transition

ADI

  • Advanced power management aligns with climate goals; ESG initiatives appear robust.

GFS

  • ESG efforts less mature; energy-intensive manufacturing poses transition risks.

7. Geopolitical Exposure

ADI

  • Diversified global presence mitigates geopolitical risk.

GFS

  • Concentrated U.S. manufacturing leaves GFS more vulnerable to trade tensions.

Which company shows a better risk-adjusted profile?

ADI faces its biggest risk from intense market competition and valuation concerns, while GFS struggles with operational and financial distress signals. ADI’s stronger capital structure, stable profitability, and safer Altman Z-Score (7.14 vs. 3.01) give it a clearer risk-adjusted edge. GFS’s negative margins and weak interest coverage highlight financial fragility, underscoring the elevated risk despite its lower market cap.

Final Verdict: Which stock to choose?

Analog Devices, Inc. (ADI) excels as a precision cash machine with strong free cash flow generation and robust operating margins. Its growing profitability signals improving efficiency. The main point of vigilance remains its premium valuation and modest return on capital, which could cap near-term upside. ADI suits an Aggressive Growth portfolio seeking quality tech exposure.

GLOBALFOUNDRIES Inc. (GFS) offers a strategic moat through its manufacturing scale and asset base, providing resilience in chip supply chains. Its lower valuation and healthier balance sheet offer relative safety versus ADI. However, persistent profitability challenges raise caution. GFS fits a GARP (Growth at a Reasonable Price) portfolio with a tolerance for operational turnaround risks.

If you prioritize steady cash generation and growth in a proven semiconductor innovator, ADI is the compelling choice due to its expanding margins and market leadership. However, if you seek value with a margin of safety amid industry cyclicality, GFS offers better stability and upside from an improving profit trajectory. Each company addresses distinct investor risk profiles and strategic goals.

Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.

Go Further

I encourage you to read the complete analyses of Analog Devices, Inc. and GLOBALFOUNDRIES Inc. to enhance your investment decisions: