Home > Comparison > Technology > ADI vs INDI
The strategic rivalry between Analog Devices, Inc. and indie Semiconductor, Inc. shapes the semiconductor industry’s innovation and growth trajectory. Analog Devices operates as a mature, capital-intensive leader with a broad product portfolio spanning industrial to aerospace markets. In contrast, indie Semiconductor focuses on high-growth automotive semiconductors and software solutions. This analysis will assess which company offers the superior risk-adjusted return potential for a diversified portfolio amid evolving technological demands.
Table of contents
Companies Overview
Analog Devices and indie Semiconductor drive innovation in the semiconductor industry with distinct market strategies.
Analog Devices, Inc.: Analog Signal Leader
Analog Devices commands the semiconductor industry through its integrated circuits that convert analog signals to digital and vice versa. Its core revenue comes from data converters, power management, and high-performance amplifiers serving industrial, automotive, and communications sectors. In 2026, Analog Devices focuses on enhancing system integration and expanding its software design tools to support complex power and signal processing applications.
indie Semiconductor, Inc.: Automotive Tech Innovator
indie Semiconductor specializes in automotive semiconductors and software for advanced driver assistance, connectivity, and electrification. Its revenue base centers on devices for parking assistance, infotainment, wireless charging, and telematics. In 2026, the company prioritizes expanding its photonic components and software solutions to strengthen its position in connected car technology and electrification markets.
Strategic Collision: Similarities & Divergences
Both firms operate in semiconductors but diverge in market focus: Analog Devices pursues broad industrial and communications applications, while indie Semiconductor zeroes in on automotive innovation. Their primary battleground is automotive semiconductors, where system integration and connectivity drive competition. Analog Devices offers a diversified, mature investment profile, contrasting with indie Semiconductor’s higher beta and growth-oriented but riskier stance.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Analog Devices, Inc. (ADI) | indie Semiconductor, Inc. (INDI) |
|---|---|---|
| Revenue | 11.0B | 217M |
| Cost of Revenue | 5.0B | 126M |
| Operating Expenses | 3.0B | 260M |
| Gross Profit | 6.0B | 90M |
| EBITDA | 5.0B | -94M |
| EBIT | 3.0B | -137M |
| Interest Expense | 318M | 9.3M |
| Net Income | 2.3B | -133M |
| EPS | 4.59 | -0.76 |
| Fiscal Year | 2025 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals how effectively each company converts sales into profits, exposing their operational strength and strategic efficiency.
Analog Devices, Inc. Analysis
Analog Devices’ revenue grew steadily from $7.3B in 2021 to $11B in 2025, with net income rising from $1.39B to $2.27B. Its gross margin remains robust at 54.7%, while net margin held at a strong 20.6% in 2025. The company’s EBIT margin surged 44% year-over-year, highlighting accelerating efficiency and solid momentum entering 2026.
indie Semiconductor, Inc. Analysis
indie Semiconductor’s revenue increased from $22.6M in 2020 to $217M in 2024, but net losses persist, with a net income of -$133M in 2024. Despite a gross margin improving to 41.7%, the net margin remains deeply negative at -61.2%. The company’s EBIT margin worsened, reflecting operational challenges and costly expansion efforts, dampening near-term profitability prospects.
Margin Strength vs. Growth Struggles
Analog Devices clearly dominates with consistent revenue growth and strong, expanding margins, reflecting disciplined capital allocation and operational leverage. indie Semiconductor shows impressive top-line growth but continues to operate at a substantial loss, indicating high risk and a longer path to profitability. Investors seeking reliable earnings should favor Analog Devices’ proven efficiency, while indie’s profile suits those prioritizing growth potential amid elevated risk.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies analyzed below:
| Ratios | Analog Devices, Inc. (ADI) | indie Semiconductor, Inc. (INDI) |
|---|---|---|
| ROE | 6.7% | -31.7% |
| ROIC | 5.5% | -19.3% |
| P/E | 51.1 | -5.35 |
| P/B | 3.42 | 1.70 |
| Current Ratio | 2.19 | 4.82 |
| Quick Ratio | 1.68 | 4.23 |
| D/E | 0.26 | 0.95 |
| Debt-to-Assets | 18.1% | 42.3% |
| Interest Coverage | 9.45 | -18.4 |
| Asset Turnover | 0.23 | 0.23 |
| Fixed Asset Turnover | 3.32 | 4.30 |
| Payout ratio | 84.9% | 0% |
| Dividend yield | 1.66% | 0% |
| Fiscal Year | 2025 | 2024 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, unlocking hidden risks and operational strengths that shape investor decisions.
Analog Devices, Inc.
Analog Devices posts a solid net margin of 20.58%, but its ROE lags at 6.7%, signaling moderate profitability. The stock appears expensive with a P/E of 51.05 and P/B of 3.42. Favorable liquidity and low debt enhance stability. A 1.66% dividend yield provides steady shareholder returns, balancing moderate growth and income.
indie Semiconductor, Inc.
Indie Semiconductor suffers steep losses, reflected in a -61.2% net margin and -31.73% ROE, showing operational challenges. The negative P/E contrasts with a modest P/B of 1.7, suggesting undervaluation or distress. Cash-rich with a quick ratio of 4.23, it lacks dividends but invests heavily in R&D, aiming for future growth despite current financial weakness.
Premium Valuation vs. Growth Challenges
Analog Devices blends operational efficiency with cautious valuation, offering balanced risk and income. Indie Semiconductor faces serious profit deficits and financial strain but pursues aggressive innovation. Risk-averse investors may favor Analog Devices, while those seeking high-growth potential amid volatility might consider Indie’s profile.
Which one offers the Superior Shareholder Reward?
Analog Devices, Inc. (ADI) offers a more compelling shareholder reward than indie Semiconductor, Inc. (INDI). ADI pays a steady dividend yield around 1.6-2.0% with a payout ratio near 85%, well-covered by strong free cash flow of 8.7/share. It also executes consistent buybacks, enhancing total return. INDI pays no dividend and generates negative free cash flow, relying heavily on reinvestment and managing high leverage. ADI’s disciplined capital allocation and sustainable distributions position it as the superior total return choice for 2026 investors.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the core financial DNA and trade-offs shaping Analog Devices, Inc. and indie Semiconductor, Inc.:
Analog Devices shows a balanced profile with moderate scores in DCF (3), ROE (3), ROA (3), and Debt/Equity (2). indie Semiconductor relies heavily on a single advantage—a relatively better Price-to-Book score (3)—while lagging severely in profitability and leverage metrics (all 1s). Analog Devices’ diversified strengths offer more stability. indie Semiconductor’s dependence on valuation metrics poses higher risk in volatile markets.
Bankruptcy Risk: Solvency Showdown
Analog Devices’ Altman Z-Score of 7.14 places it firmly in the safe zone, signaling robust financial health. indie Semiconductor’s 0.22 score situates it in the distress zone, implying a high bankruptcy risk:
Financial Health: Quality of Operations
Analog Devices scores a strong 7 on the Piotroski scale, reflecting solid profitability, liquidity, and operational efficiency. indie Semiconductor’s weak 2 signals red flags in internal financial controls and performance:
How are the two companies positioned?
This section dissects ADI and INDI’s operational DNA by comparing revenue distribution and internal dynamics. The goal is to confront their economic moats and identify the most resilient competitive advantage in today’s market.
Revenue Segmentation: The Strategic Mix
This comparison dissects how Analog Devices, Inc. and indie Semiconductor, Inc. diversify their income streams and reveals their primary sector bets:
Analog Devices anchors revenue in Industrial at $4.3B, with significant contributions from Automotive ($2.8B), Consumer ($1.2B), and Communications ($1.1B). This mix signals robust diversification, reducing concentration risk and leveraging broad industrial demand. Indie Semiconductor pivots heavily on Product sales at $203M, with Service trailing at $14M. The reliance on a single dominant segment exposes indie Semiconductor to higher volatility, while Analog Devices’ ecosystem lock-in supports resilient growth.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Analog Devices, Inc. (ADI) and indie Semiconductor, Inc. (INDI):
ADI Strengths
- Diversified revenue across Automotive, Communications, Consumer, Industrial sectors
- Favorable net margin at 20.58%
- Strong liquidity with current ratio 2.19 and quick ratio 1.68
- Low debt ratio at 18.05% debt to assets
- Global presence with significant sales in US, China, Europe, Japan
- Favorable fixed asset turnover at 3.32
INDI Strengths
- Favorable fixed asset turnover at 4.3
- Favorable quick ratio 4.23 indicating liquidity
- Moderate price-to-book ratio at 1.7
- Some revenue diversification between Product and Service segments
- Presence in US, China, Europe, Asia Pacific markets
ADI Weaknesses
- Unfavorable return on equity at 6.7% below WACC
- Unfavorable high P/E of 51.05 indicating overvaluation risk
- Unfavorable asset turnover at 0.23
- Unfavorable price-to-book at 3.42
- Dividend yield neutral at 1.66%
- Moderate exposure to market cyclicality in Industrial sector
INDI Weaknesses
- Unfavorable negative net margin at -61.2%
- Negative ROE and ROIC indicating losses
- Unfavorable high weighted average cost of capital at 11.32%
- Negative interest coverage ratio at -14.8
- High debt level with debt to assets at 42.34%
- Unfavorable zero dividend yield
- Current ratio very high at 4.82, possibly inefficient asset use
Overall, ADI shows strong diversification and financial stability with favorable profitability and liquidity metrics, though some valuation and efficiency concerns persist. INDI struggles with profitability and capital structure but maintains liquidity and asset turnover strengths. These contrasts highlight differing strategic priorities and operational challenges.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable shield protecting long-term profits from relentless competitive erosion. Let’s dive into how these two semiconductors stack up:
Analog Devices, Inc. (ADI): Engineering Precision with Intangible Assets
ADI’s moat centers on deep intangible assets—proprietary analog and mixed-signal technologies that fuel high ROIC and margin stability. Despite currently shedding value versus WACC, its growing ROIC trend and broad industrial footprint signal a potential moat strengthening by 2026.
indie Semiconductor, Inc. (INDI): Emerging Innovation with Product Differentiation
INDI relies on niche automotive semiconductor innovation, but its moat is weaker, reflected in steeply negative ROIC versus WACC and shrinking profitability. This contrasts sharply with ADI’s scale. Yet, INDI’s focus on connected car tech could disrupt future markets if it reverses its declining ROIC trend.
Moat Stamina: Intangible Assets vs. Emerging Innovation
ADI boasts a wider, more durable moat with better financial health and stable margins. INDI’s moat is narrower and currently unstable, putting it at a disadvantage to defend market share long term. I view ADI as better positioned to sustain competitive advantage through 2026.
Which stock offers better returns?
Over the past year, Analog Devices, Inc. surged sharply, showing strong acceleration, while indie Semiconductor, Inc. declined significantly despite a recent modest rebound.
Trend Comparison
Analog Devices, Inc. recorded a 58.66% price increase over 12 months, reflecting a bullish trend with accelerating momentum and a high volatility level (std dev 26.38). The stock peaked at 310.88 and bottomed at 164.6.
indie Semiconductor, Inc. fell 39.79% over the same period, marking a bearish trend with accelerating decline and very low volatility (std dev 1.32). Its highest price was 7.43, lowest 1.6.
Analog Devices delivered the highest market performance, outperforming indie Semiconductor by a wide margin, supported by strong buyer dominance and volume growth.
Target Prices
Analysts show a clear consensus on target prices for Analog Devices, Inc. and indie Semiconductor, Inc.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Analog Devices, Inc. | 270 | 375 | 316 |
| indie Semiconductor, Inc. | 8 | 8 | 8 |
The consensus target for Analog Devices stands slightly above the current price of 311 USD, indicating moderate upside. indie Semiconductor’s target of 8 USD suggests significant growth potential from its current 4.1 USD price.
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How do institutions grade them?
Analog Devices, Inc. Grades
The following table summarizes recent grades from reputable analysts for Analog Devices, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Susquehanna | Maintain | Positive | 2026-01-22 |
| B of A Securities | Maintain | Buy | 2026-01-21 |
| Stifel | Maintain | Buy | 2026-01-16 |
| Oppenheimer | Maintain | Outperform | 2026-01-16 |
| Wells Fargo | Upgrade | Overweight | 2026-01-15 |
| Citigroup | Maintain | Buy | 2026-01-15 |
| Keybanc | Maintain | Overweight | 2026-01-13 |
| Truist Securities | Maintain | Hold | 2025-12-19 |
| UBS | Maintain | Buy | 2025-12-08 |
| Truist Securities | Maintain | Hold | 2025-11-26 |
indie Semiconductor, Inc. Grades
Below are the recent grades from credible institutions for indie Semiconductor, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2025-11-10 |
| Benchmark | Maintain | Buy | 2025-06-25 |
| Benchmark | Maintain | Buy | 2025-06-11 |
| Benchmark | Maintain | Buy | 2025-05-21 |
| Benchmark | Maintain | Buy | 2025-05-13 |
| Craig-Hallum | Maintain | Buy | 2025-05-13 |
| Keybanc | Maintain | Overweight | 2025-05-13 |
| Benchmark | Maintain | Buy | 2025-04-09 |
| Benchmark | Maintain | Buy | 2025-02-21 |
| Keybanc | Maintain | Overweight | 2025-02-21 |
Which company has the best grades?
Analog Devices consistently receives strong buy and outperform ratings, with some upgrades recently. indie Semiconductor mostly earns buy and overweight grades but includes neutral ratings. Investors may view Analog Devices as having more robust analyst confidence.
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)
- Established leader with strong product diversification in analog and mixed-signal ICs.
indie Semiconductor, Inc. (INDI)
- Smaller, niche player focused on automotive semiconductors, facing intense competition and market entry challenges.
2. Capital Structure & Debt
Analog Devices, Inc. (ADI)
- Low debt-to-equity (0.26), solid interest coverage (9.54), indicating conservative leverage and strong financial stability.
indie Semiconductor, Inc. (INDI)
- High debt-to-equity (0.95) with negative interest coverage (-14.8) signals financial stress and refinancing risks.
3. Stock Volatility
Analog Devices, Inc. (ADI)
- Beta of 1.03 reflects market-level volatility, suitable for risk-conscious investors.
indie Semiconductor, Inc. (INDI)
- High beta of 2.54 indicates elevated stock price swings and higher risk exposure.
4. Regulatory & Legal
Analog Devices, Inc. (ADI)
- Operates globally with mature compliance frameworks but faces evolving tech regulations.
indie Semiconductor, Inc. (INDI)
- Emerging company with less regulatory history, potential risks in automotive safety and software standards compliance.
5. Supply Chain & Operations
Analog Devices, Inc. (ADI)
- Established global supply chain with diversified sourcing mitigates disruption risks.
indie Semiconductor, Inc. (INDI)
- Smaller scale and dependency on specialized automotive components increase supply chain vulnerability.
6. ESG & Climate Transition
Analog Devices, Inc. (ADI)
- Larger firm with ongoing ESG initiatives; pressure to meet global sustainability standards.
indie Semiconductor, Inc. (INDI)
- Newer company likely facing growing pressure to integrate ESG in product design and manufacturing.
7. Geopolitical Exposure
Analog Devices, Inc. (ADI)
- Broad international footprint exposes it to US-China tensions but benefits from geographic diversification.
indie Semiconductor, Inc. (INDI)
- Concentrated operations in the US with limited global footprint, less exposed but also less diversified.
Which company shows a better risk-adjusted profile?
Analog Devices faces manageable risks with a strong balance sheet and stable market position. indie Semiconductor carries high financial leverage, weak profitability, and elevated stock volatility. The most impactful risk for ADI is geopolitical exposure amid global supply chain tensions. For INDI, the critical risk is financial distress indicated by poor coverage ratios and a distressed Altman Z-Score. Analog Devices shows a superior risk-adjusted profile, supported by a safe-zone Altman Z-Score of 7.14 and strong Piotroski score of 7, versus indie Semiconductor’s distress-zone Z-Score of 0.22 and very weak Piotroski score of 2. This financial fragility in indie Semiconductor justifies caution despite its growth potential.
Final Verdict: Which stock to choose?
Analog Devices, Inc. (ADI) shines as a cash-generating powerhouse with robust margin expansion and disciplined capital allocation. Its growing profitability amid a challenging industry landscape highlights operational resilience. A point of vigilance is its relatively high valuation, which could temper near-term upside. ADI suits an Aggressive Growth portfolio seeking proven execution.
indie Semiconductor, Inc. (INDI) presents a strategic moat rooted in deep R&D investment and potential for technological breakthroughs. While its financials reflect early-stage volatility and value destruction, its strong balance sheet offers relative safety versus ADI’s premium. INDI fits a GARP profile, targeting investors willing to tolerate risk for innovation-driven upside.
If you prioritize steady cash flow and margin expansion, ADI is the compelling choice due to its operational strength and improving returns. However, if you seek high-risk, tech-focused growth with a longer runway, INDI offers superior innovation potential despite financial headwinds. Both present distinct analytical scenarios for different investor appetites.
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 indie Semiconductor, Inc. to enhance your investment decisions:
