In the fast-evolving semiconductor industry, Analog Devices, Inc. (ADI) and ON Semiconductor Corporation (ON) stand out as key players driving technological innovation. Both companies focus on advanced analog and power solutions, serving overlapping markets like automotive and industrial sectors. Their distinct approaches to innovation and market strategy make this comparison vital. Join me as we explore which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Analog Devices, Inc. and ON Semiconductor Corporation by providing an overview of these two companies and their main differences.
Analog Devices, Inc. Overview
Analog Devices, Inc. designs, manufactures, and markets integrated circuits, software, and subsystems focused on analog, mixed-signal, and digital signal processing technologies. The company serves diverse markets including industrial, automotive, consumer, aerospace, and communications with products such as data converters, power management ICs, amplifiers, and MEMS technology. Founded in 1965, it is headquartered in Wilmington, Massachusetts, and has a market cap of $149B.
ON Semiconductor Corporation Overview
ON Semiconductor Corporation specializes in intelligent sensing and power solutions that support the electrification of the automotive industry and sustainable energy applications. Its portfolio includes analog, discrete, module, and integrated semiconductor products across power switching, signal conditioning, and image sensors. Established in 1992 and based in Scottsdale, Arizona, ON Semiconductor has a market cap of $25B and operates through three main segments: Power Solutions, Advanced Solutions, and Intelligent Sensing.
Key similarities and differences
Both Analog Devices and ON Semiconductor operate in the semiconductor industry with a focus on analog and mixed-signal technologies. They serve automotive and industrial markets but differ in scale and specialization. Analog Devices emphasizes high-performance signal processing and MEMS products, while ON Semiconductor concentrates on power solutions and intelligent sensing for electrification and sustainable energy. Their market caps and employee counts also reflect different sizes, with Analog Devices being significantly larger.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for Analog Devices, Inc. and ON Semiconductor Corporation for their most recent fiscal years.
| Metric | Analog Devices, Inc. (ADI) | ON Semiconductor Corporation (ON) |
|---|---|---|
| Market Cap | 149.4B | 24.7B |
| Revenue | 11.0B | 7.1B |
| EBITDA | 5.03B | 2.54B |
| EBIT | 3.03B | 1.90B |
| Net Income | 2.27B | 1.57B |
| EPS | 4.59 | 3.68 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Analog Devices, Inc.
Analog Devices demonstrated strong revenue growth from 2021 to 2025, with a 50.58% increase, accompanied by a 63.07% rise in net income. Margins remained robust, with gross margin at 54.66% and net margin at 20.58%, both favorable. In 2025, revenue growth accelerated by 16.89%, while net margin improved by 18.61%, reflecting enhanced profitability and operational efficiency.
ON Semiconductor Corporation
ON Semiconductor recorded a 34.77% revenue growth over 2020-2024, with a remarkable 571.56% increase in net income. Margins are solid, with a 45.41% gross margin and a 22.21% net margin. However, the most recent year saw a 14.19% revenue decline and a 16.07% drop in net margin, signaling a slowdown in growth despite favorable long-term trends.
Which one has the stronger fundamentals?
Analog Devices exhibits consistently favorable growth across revenue, net income, and margins, with improved profitability in the latest year. ON Semiconductor shows impressive long-term net income growth but recent declines in revenue and margins introduce caution. Overall, Analog Devices presents steadier and more balanced income statement fundamentals.
Financial Ratios Comparison
Below is a comparison of key financial ratios for Analog Devices, Inc. (ADI) and ON Semiconductor Corporation (ON) based on their most recent fiscal year data.
| Ratios | Analog Devices, Inc. (ADI) 2025 | ON Semiconductor Corporation (ON) 2024 |
|---|---|---|
| ROE | 6.7% | 17.9% |
| ROIC | 5.5% | 11.9% |
| P/E | 51.1 | 17.1 |
| P/B | 3.42 | 3.06 |
| Current Ratio | 2.19 | 5.06 |
| Quick Ratio | 1.68 | 3.38 |
| D/E (Debt to Equity) | 0.26 | 0.38 |
| Debt-to-Assets | 18.1% | 23.9% |
| Interest Coverage | 9.45 | 28.4 |
| Asset Turnover | 0.23 | 0.50 |
| Fixed Asset Turnover | 3.32 | 1.61 |
| Payout Ratio | 85% | 0% |
| Dividend Yield | 1.66% | 0% |
Interpretation of the Ratios
Analog Devices, Inc.
Analog Devices displays a balanced financial profile with favorable liquidity and leverage ratios, including a strong current ratio of 2.19 and debt-to-equity of 0.26. However, valuation metrics such as a high P/E of 51.05 and low return on equity at 6.7% raise concerns. The company pays dividends, with a moderate yield of 1.66%, indicating a stable but cautious shareholder return approach.
ON Semiconductor Corporation
ON Semiconductor shows robust profitability with strong net margin (22.21%) and return on equity (17.88%). Its current ratio is unusually high at 5.06, which might suggest inefficient asset use, though the quick ratio remains favorable at 3.38. The company does not pay dividends, likely reinvesting earnings to fuel growth, supported by solid free cash flow and low debt leverage.
Which one has the best ratios?
Both companies have an equal proportion of favorable ratios at 50%, with similar levels of unfavorable and neutral assessments. Analog Devices excels in liquidity and fixed asset turnover, while ON Semiconductor leads in profitability and interest coverage. Neither stands out decisively, resulting in a slightly favorable overall ratio evaluation for both.
Strategic Positioning
This section compares the strategic positioning of Analog Devices, Inc. and ON Semiconductor Corporation, focusing on market position, key segments, and exposure to technological disruption:
Analog Devices, Inc. (ADI)
- Large market cap of 149B with moderate beta, facing semiconductor competition
- Diverse segments: automotive, industrial, communications, consumer; industrial leads revenue
- Exposure to disruption through advanced analog, mixed-signal, and digital signal processing technologies
ON Semiconductor Corporation (ON)
- Smaller market cap of 25B, higher beta, indicating greater volatility and competition
- Focused segments: power solutions, analog solutions, intelligent sensing; power solutions dominate
- Exposure via electrification, intelligent power, image sensors, and integrated power solutions
Analog Devices, Inc. vs ON Semiconductor Corporation Positioning
ADI shows a diversified segment presence across multiple markets with a large industrial focus, while ON concentrates on power and sensing solutions, emphasizing automotive electrification and sustainable energy. ADI’s broad portfolio contrasts with ON’s targeted approach.
Which has the best competitive advantage?
Based on MOAT evaluation, ON Semiconductor has a slightly favorable moat with growing ROIC above WACC, indicating improving profitability. ADI shows a slightly unfavorable moat, shedding value despite growing ROIC, reflecting weaker current competitive advantage.
Stock Comparison
The stock price movements over the past 12 months reveal a pronounced bullish trend for Analog Devices, Inc. (ADI) with strong acceleration, contrasting with a bearish trend for ON Semiconductor Corporation (ON), despite both showing increasing trading volumes.
Trend Analysis
Analog Devices, Inc. (ADI) exhibits a 58.91% price increase over the past year, signaling a bullish trend with accelerating momentum. The stock’s volatility is high, reflected in a 24.21 std deviation, with prices ranging from $164.6 to $302.1.
ON Semiconductor Corporation (ON) shows a 20.88% price decline over the same period, indicating a bearish trend with acceleration. The stock’s volatility is lower, with an 11.97 std deviation and price fluctuating between $33.7 and $81.14.
Comparing both, ADI delivered the highest market performance with a strong bullish trend, while ON experienced a significant bearish trend despite recent positive price movements.
Target Prices
The target price consensus for Analog Devices, Inc. and ON Semiconductor Corporation reflects moderate upside potential.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Analog Devices, Inc. | 375 | 270 | 304.73 |
| ON Semiconductor Corporation | 64 | 51 | 58.33 |
Analysts expect Analog Devices to trade slightly above its current price of 302.1 USD, indicating cautious optimism. ON Semiconductor’s consensus target is just below its current price of 60.28 USD, suggesting a neutral to slightly bearish outlook.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Analog Devices, Inc. (ADI) and ON Semiconductor Corporation (ON):
Rating Comparison
ADI Rating
- Rating: B- with a very favorable status
- Discounted Cash Flow Score: 4 (favorable)
- ROE Score: 3 (moderate)
- ROA Score: 3 (moderate)
- Debt To Equity Score: 2 (moderate)
- Overall Score: 3 (moderate)
ON Rating
- Rating: B- with a very favorable status
- Discounted Cash Flow Score: 3 (moderate)
- ROE Score: 2 (moderate)
- ROA Score: 3 (moderate)
- Debt To Equity Score: 2 (moderate)
- Overall Score: 2 (moderate)
Which one is the best rated?
Based strictly on the provided data, ADI and ON share the same overall rating of B- with very favorable status, but ADI has higher scores in discounted cash flow and ROE, making its financial scores generally stronger than ON’s.
Scores Comparison
Here is a comparison of the financial health scores for Analog Devices, Inc. and ON Semiconductor Corporation:
ADI Scores
- Altman Z-Score: 6.99, indicating a safe zone and low bankruptcy risk.
- Piotroski Score: 7, representing strong financial health.
ON Scores
- Altman Z-Score: 4.84, also in the safe zone with low bankruptcy risk.
- Piotroski Score: 6, reflecting average financial strength.
Which company has the best scores?
Based strictly on the provided data, ADI has higher scores for both Altman Z-Score and Piotroski Score, indicating stronger financial health compared to ON, which has a lower Piotroski Score but remains in a safe zone for Altman Z-Score.
Grades Comparison
Here is the comparison of the latest grades and ratings for Analog Devices, Inc. and ON Semiconductor Corporation:
Analog Devices, Inc. Grades
The following table shows recent analyst grades for Analog Devices, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2026-01-13 |
| Truist Securities | Maintain | Hold | 2025-12-19 |
| UBS | Maintain | Buy | 2025-12-08 |
| Wells Fargo | Maintain | Equal Weight | 2025-11-26 |
| B of A Securities | Maintain | Buy | 2025-11-26 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-26 |
| JP Morgan | Maintain | Overweight | 2025-11-26 |
| Baird | Maintain | Outperform | 2025-11-26 |
| Benchmark | Maintain | Buy | 2025-11-26 |
| Truist Securities | Maintain | Hold | 2025-11-26 |
Overall, Analog Devices, Inc. shows predominantly positive grades, with multiple “Buy,” “Outperform,” and “Overweight” ratings, indicating generally favorable analyst sentiment.
ON Semiconductor Corporation Grades
The following table shows recent analyst grades for ON Semiconductor Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Overweight | 2026-01-07 |
| Truist Securities | Maintain | Hold | 2025-12-19 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-24 |
| Truist Securities | Maintain | Hold | 2025-11-04 |
| Baird | Maintain | Neutral | 2025-11-04 |
| Rosenblatt | Maintain | Neutral | 2025-11-04 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-04 |
| TD Cowen | Maintain | Buy | 2025-11-04 |
| UBS | Maintain | Neutral | 2025-10-27 |
| B of A Securities | Maintain | Neutral | 2025-09-05 |
ON Semiconductor Corporation’s grades mainly cluster around “Hold,” “Neutral,” and “Equal Weight,” with fewer “Buy” ratings, reflecting a more cautious analyst outlook.
Which company has the best grades?
Analog Devices, Inc. has received stronger and more positive grades overall compared to ON Semiconductor Corporation. This suggests greater analyst confidence in Analog Devices’ prospects, which may influence investors seeking higher conviction signals in their portfolio decisions.
Strengths and Weaknesses
Below is a comparison table highlighting the key strengths and weaknesses of Analog Devices, Inc. (ADI) and ON Semiconductor Corporation (ON) based on their recent financial and operational data.
| Criterion | Analog Devices, Inc. (ADI) | ON Semiconductor Corporation (ON) |
|---|---|---|
| Diversification | Broad segment exposure with strong Industrial (4.3B), Automotive (2.8B), and Communications (1.1B) sectors | Diverse revenue streams with Power Solutions (3.3B), Analog Solutions (2.6B), and Intelligent Sensing (1.1B) |
| Profitability | Net margin 20.58% (favorable), ROE 6.7% (unfavorable), ROIC 5.55% (neutral); currently shedding value but profitability improving | Net margin 22.21%, ROE 17.88%, ROIC 11.88% (all favorable); growing profitability despite WACC challenges |
| Innovation | Moderate asset turnover (0.23 unfavorable), high fixed asset turnover (3.32 favorable), indicating efficient use of fixed assets | Moderate asset turnover (0.5 neutral), fixed asset turnover 1.61 neutral; showing steady operational efficiency |
| Global presence | Strong global industrial focus, supporting sustained revenue growth across segments | Growing global footprint, especially in power and sensing markets, with expanding revenue in key groups |
| Market Share | Strong in industrial and automotive analog markets; however, premium valuations (PE 51.05, PB 3.42 unfavorable) may limit upside | Competitive pricing with moderate PE (17.13 neutral), PB (3.06 unfavorable); solid market position in power and analog semiconductors |
Key takeaways: ADI shows solid diversification and improving profitability trends despite current value shedding, while ON Semiconductor delivers stronger profitability metrics and rapid ROIC growth but faces challenges with cost of capital and valuation. Both offer slightly favorable investment profiles with distinct operational focuses.
Risk Analysis
Below is a comparative overview of key risks for Analog Devices, Inc. (ADI) and ON Semiconductor Corporation (ON) as of the most recent year.
| Metric | Analog Devices, Inc. (ADI) | ON Semiconductor Corporation (ON) |
|---|---|---|
| Market Risk | Beta 1.03, moderate market volatility exposure | Beta 1.54, higher market sensitivity and volatility risk |
| Debt level | Low debt/equity 0.26, favorable leverage | Moderate debt/equity 0.38, manageable but higher leverage |
| Regulatory Risk | Moderate; global operations face varying regulations | Moderate; automotive and industrial sectors sensitive to regulation |
| Operational Risk | Large scale operations, supply chain complexity | High dependency on automotive electrification trends |
| Environmental Risk | Exposure to environmental compliance in manufacturing | Increasing focus on sustainability, solar, and EV sectors |
| Geopolitical Risk | Global market presence including China and Asia | Similar global exposure, sensitive to trade tensions |
The most impactful risks include ON Semiconductor’s higher market volatility (beta 1.54) and moderate debt level, which could amplify financial stress during downturns. Analog Devices, with a slightly lower beta and stronger debt metrics, faces moderate operational and regulatory risks but maintains a safer financial profile. Investors should monitor market conditions and geopolitical developments that could affect supply chains and demand in the semiconductor industry.
Which Stock to Choose?
Analog Devices, Inc. (ADI) shows a favorable income evolution with strong growth in revenue and net income over 2021–2025, supported by mostly favorable financial ratios. Profitability is solid despite moderate debt levels, and the company holds a very favorable B- rating. The MOAT analysis suggests slight value destruction but improving profitability.
ON Semiconductor Corporation (ON) exhibits a mixed income evolution with recent revenue declines but impressive overall net income and margin growth since 2020. Financial ratios are slightly favorable with lower debt and higher returns than ADI. It shares the same B- rating, with a slightly favorable MOAT indicating improving profitability but no clear competitive advantage yet.
Investors focused on growth and long-term income stability might find ADI’s consistent profitability and favorable income statement appealing, while those prioritizing higher returns on equity and capital with moderate risk might see ON as more attractive. The choice could depend on the investor’s risk tolerance and investment strategy.
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 ON Semiconductor Corporation to enhance your investment decisions:
