In the fast-evolving semiconductor industry, ON Semiconductor Corporation and Cirrus Logic, Inc. stand out as innovative players with distinct market approaches. ON focuses on power solutions and intelligent sensing for automotive and industrial applications, while Cirrus Logic specializes in high-precision mixed-signal processing for audio and energy sectors. This comparison explores their strategies and growth potential to help you decide which stock fits best in your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between ON Semiconductor Corporation and Cirrus Logic, Inc. by providing an overview of these two companies and their main differences.
ON Semiconductor Corporation Overview
ON Semiconductor specializes in intelligent sensing and power solutions, focusing on enabling electrification in automotive and sustainable energy markets. It offers a broad range of semiconductor products including analog, discrete, and integrated circuits, serving diverse end-markets with power switching, signal conditioning, and voltage regulation. Headquartered in Scottsdale, AZ, ON operates through three segments and employs approximately 26,400 people.
Cirrus Logic, Inc. Overview
Cirrus Logic is a fabless semiconductor company providing low-power, high-precision mixed-signal processing solutions mainly for audio applications. Its product portfolio includes codecs, digital signal processors, and SoundClear technology for devices like smartphones and automotive systems. Based in Austin, TX, Cirrus Logic focuses on enhancing user audio experience and serves industrial and energy sectors with advanced mixed-signal products, employing around 1,609 people.
Key similarities and differences
Both companies operate in the semiconductor industry and trade on NASDAQ, offering technology solutions involving analog and digital components. ON Semiconductor has a broader product range targeting electrification and power management across multiple sectors, whereas Cirrus Logic concentrates on audio and mixed-signal processing primarily for consumer electronics and industrial applications. ON is significantly larger in market capitalization and workforce size compared to Cirrus Logic.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for ON Semiconductor Corporation and Cirrus Logic, Inc. for their most recent fiscal years.
| Metric | ON Semiconductor Corporation | Cirrus Logic, Inc. |
|---|---|---|
| Market Cap | 24.7B | 6.3B |
| Revenue | 7.1B | 1.9B |
| EBITDA | 2.54B | 497M |
| EBIT | 1.90B | 445M |
| Net Income | 1.57B | 332M |
| EPS | 3.68 | 6.24 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
ON Semiconductor Corporation
ON Semiconductor’s revenue grew 35% from 2020 to 2024 but declined 14% in the most recent year, similarly net income surged over 570% across the period but dropped 16% in 2024. Margins show strength with a gross margin of 45.4% and net margin of 22.2%, yet recent margin contraction reflects in lower profitability and EPS growth in 2024, signaling a cautious outlook on short-term earnings momentum.
Cirrus Logic, Inc.
Cirrus Logic’s revenue increased steadily by 38% from 2021 to 2025, with a 6% rise in the latest year. Net income also advanced 52% over the period, supported by a 14% net margin improvement last year. The company maintains a high gross margin of 52.5% and a solid EBIT margin of 23.5%, with recent growth in profitability and EPS indicating robust operational performance and improving earnings quality.
Which one has the stronger fundamentals?
Cirrus Logic demonstrates stronger recent fundamentals with consistent revenue growth, expanding margins, and favorable profitability trends, including a high gross margin and improved net margin. ON Semiconductor shows impressive long-term growth but faces recent declines in revenue and net income with margin pressure. Cirrus Logic’s more stable and favorable income statement metrics currently suggest comparatively stronger fundamentals.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for ON Semiconductor Corporation and Cirrus Logic, Inc., based on the most recent available fiscal year data.
| Ratios | ON Semiconductor Corporation (2024) | Cirrus Logic, Inc. (2025) |
|---|---|---|
| ROE | 17.9% | 17.0% |
| ROIC | 11.9% | 14.2% |
| P/E | 17.1 | 15.9 |
| P/B | 3.06 | 2.71 |
| Current Ratio | 5.06 | 6.35 |
| Quick Ratio | 3.38 | 4.82 |
| D/E (Debt-to-Equity) | 0.38 | 0.07 |
| Debt-to-Assets | 24.0% | 6.2% |
| Interest Coverage | 28.4 | 457.0 |
| Asset Turnover | 0.50 | 0.81 |
| Fixed Asset Turnover | 1.61 | 6.62 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0% | 0% |
Interpretation of the Ratios
ON Semiconductor Corporation
ON Semiconductor shows a balanced profile with half of its ratios favorable, including strong net margin at 22.21% and solid return on equity of 17.88%. However, some concerns arise from its high current ratio of 5.06 and price-to-book ratio of 3.06. The company does not pay dividends, likely focusing on reinvestment and growth, as indicated by zero dividend yield and payout.
Cirrus Logic, Inc.
Cirrus Logic demonstrates a favorable overall ratio profile with over 57% favorable metrics, including a robust return on invested capital of 14.2% and an exceptionally high interest coverage of 495.45. The current ratio is high at 6.35, marked unfavorable, but debt levels remain low. Like ON Semiconductor, Cirrus Logic pays no dividend, suggesting a focus on reinvestment and innovation.
Which one has the best ratios?
Cirrus Logic presents a more favorable ratio profile with higher returns on invested capital, lower debt, and stronger interest coverage, despite a similarly high current ratio as ON Semiconductor. ON Semiconductor carries a mix of strong profitability but some concerning liquidity and valuation ratios, making Cirrus Logic slightly stronger on balance based on the given metrics.
Strategic Positioning
This section compares the strategic positioning of ON Semiconductor Corporation and Cirrus Logic, Inc., including Market position, Key segments, and Exposure to technological disruption:
ON Semiconductor Corporation (ON)
- Large market cap of 24.7B in semiconductors facing high competition with diversified product groups.
- Key segments include Power Solutions (3.3B), Analog Solutions (2.6B), and Intelligent Sensing (1.1B) driving growth.
- Exposure includes power technologies aiding automotive electrification and sustainable energy, with analog and sensing innovations.
Cirrus Logic, Inc. (CRUS)
- Smaller market cap of 6.3B, positioned in fabless semiconductors focusing on audio and mixed-signal niches.
- Key segments are Portable Audio Products (1.1B) and High-Performance Mixed Signal Products (0.76B).
- Focused on audio enhancements, mixed-signal processing, and industrial energy applications, leveraging software algorithms.
ON vs CRUS Positioning
ON operates a diversified business model with multiple semiconductor segments, providing broad exposure but facing competitive pressures. CRUS concentrates on audio and mixed-signal niches, offering focused innovation but less segment diversification.
Which has the best competitive advantage?
CRUS demonstrates a very favorable economic moat with ROIC exceeding WACC by 5.4% and growing profitability, indicating a durable competitive advantage. ON shows a slightly favorable moat with growing ROIC but still shedding value relative to WACC.
Stock Comparison
The stock prices of ON Semiconductor Corporation and Cirrus Logic, Inc. exhibited contrasting dynamics over the past year, with ON showing a significant overall decline but recent recovery, while Cirrus Logic maintained a strong upward trajectory before a mild recent pullback.
Trend Analysis
ON Semiconductor Corporation’s stock experienced a bearish trend over the past 12 months, declining by 20.88% with accelerating downward momentum and a high volatility level of 11.97. However, a recent rebound of 20.37% suggests a short-term bullish shift.
Cirrus Logic, Inc. demonstrated a bullish trend over the same period, gaining 34.06% with decelerating momentum and higher volatility at 14.46. The recent trend shows a slight bearish correction of -7.06% with reduced volatility.
Comparing both, Cirrus Logic delivered the highest market performance over the past year despite its recent mild decline, while ON Semiconductor showed a substantial overall loss but signs of short-term recovery.
Target Prices
The target price consensus for ON Semiconductor Corporation and Cirrus Logic, Inc. reflects generally optimistic analyst expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ON Semiconductor Corporation | 64 | 51 | 58.33 |
| Cirrus Logic, Inc. | 155 | 100 | 138.75 |
Analysts expect ON Semiconductor to trade slightly below its current price of $60.28, while Cirrus Logic’s target consensus of $138.75 is notably above its current price of $123.28, indicating growth potential.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for ON Semiconductor Corporation and Cirrus Logic, Inc.:
Rating Comparison
ON Rating
- Rating: B- with a “Very Favorable” status indicating a generally positive assessment of the company.
- Discounted Cash Flow Score: 3, rated “Moderate,” suggesting average valuation based on cash flows.
- ROE Score: 2 with a “Moderate” rating, showing moderate efficiency in generating profit from equity.
- ROA Score: 3, “Moderate,” reflecting average asset utilization effectiveness.
- Debt To Equity Score: 2, “Moderate,” implying a moderate level of financial risk due to leverage.
- Overall Score: 2, “Moderate,” representing an average overall financial assessment.
CRUS Rating
- Rating: A- with a “Very Favorable” status, reflecting a stronger financial standing than ON.
- Discounted Cash Flow Score: 4, rated “Favorable,” indicating better valuation prospects than ON.
- ROE Score: 4, “Favorable,” demonstrating higher efficiency in generating returns on shareholders’ equity.
- ROA Score: 5, “Very Favorable,” indicating excellent asset utilization by CRUS.
- Debt To Equity Score: 3, “Moderate,” showing slightly higher but still moderate financial risk than ON.
- Overall Score: 4, “Favorable,” indicating a stronger overall financial profile compared to ON.
Which one is the best rated?
Based strictly on provided data, Cirrus Logic (CRUS) is better rated than ON Semiconductor (ON) with higher scores across discounted cash flow, ROE, ROA, and overall ratings, reflecting stronger financial and operational metrics.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for ON Semiconductor Corporation and Cirrus Logic, Inc.:
ON Scores
- Altman Z-Score: 4.84, indicating a safe zone for bankruptcy risk.
- Piotroski Score: 6, reflecting average financial strength.
CRUS Scores
- Altman Z-Score: 11.94, well within the safe zone.
- Piotroski Score: 7, indicating strong financial health.
Which company has the best scores?
Based on the provided data, CRUS outperforms ON in both Altman Z-Score and Piotroski Score, showing stronger financial stability and health. ON remains in a safe zone but with a lower Piotroski score.
Grades Comparison
Here is the summary of recent reliable grades awarded to ON Semiconductor Corporation and Cirrus Logic, Inc.:
ON Semiconductor Corporation Grades
The following table shows recent grades from recognized grading firms 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’s grades range mainly from Hold/Neutral to Buy/Overweight, showing a stable outlook with a slight positive tilt.
Cirrus Logic, Inc. Grades
The following table presents recent grades from credible grading firms for Cirrus Logic, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Keybanc | Maintain | Overweight | 2025-11-05 |
| Barclays | Maintain | Equal Weight | 2025-11-05 |
| Stifel | Maintain | Buy | 2025-11-05 |
| Benchmark | Maintain | Buy | 2025-11-05 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Stifel | Maintain | Buy | 2025-10-17 |
| Stifel | Maintain | Buy | 2025-09-12 |
| Barclays | Maintain | Equal Weight | 2025-05-07 |
| Barclays | Maintain | Equal Weight | 2025-04-22 |
| Stifel | Maintain | Buy | 2025-04-17 |
Cirrus Logic’s grades mostly range from Equal Weight to Buy/Overweight, with multiple Buy ratings suggesting a generally optimistic consensus.
Which company has the best grades?
Both ON Semiconductor and Cirrus Logic carry a consensus “Buy” rating, but Cirrus Logic shows a higher frequency of Buy and Overweight grades from multiple firms. This pattern may imply stronger market confidence in Cirrus Logic’s prospects, potentially influencing investor sentiment more positively.
Strengths and Weaknesses
The table below summarizes key strengths and weaknesses of ON Semiconductor Corporation (ON) and Cirrus Logic, Inc. (CRUS) based on recent financial and operational data.
| Criterion | ON Semiconductor Corporation (ON) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Diversification | Broad product portfolio across Power, Analog, and Sensing groups | Focused mainly on Portable Audio and High-Performance Mixed Signal products |
| Profitability | Favorable net margin (22.21%) and ROIC (11.88%), slightly favorable overall ratios | Favorable net margin (17.48%) and ROIC (14.2%), with a very favorable moat and ratios |
| Innovation | Growing ROIC trend indicates improving profitability; moderate innovation pace | Demonstrates durable competitive advantage with strong ROIC growth and innovation in mixed signal products |
| Global presence | Large global footprint in multiple industrial sectors | More specialized global presence focused on audio and mixed signal markets |
| Market Share | Significant in power and analog semiconductor markets | Leading in portable audio and mixed signal segments |
In summary, ON Semiconductor benefits from a diversified product line and improving profitability but lacks a strong moat yet. Cirrus Logic shows a durable competitive advantage with focused innovation and favorable profitability metrics, making it a stronger value creator in its niche.
Risk Analysis
Below is a risk comparison table for ON Semiconductor Corporation (ON) and Cirrus Logic, Inc. (CRUS) based on the most recent data from 2025-2026.
| Metric | ON Semiconductor Corporation (ON) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Market Risk | High beta (1.54) indicates higher volatility and sensitivity to market swings. | Moderate beta (1.08) suggests lower volatility relative to ON. |
| Debt level | Moderate debt-to-equity ratio (0.38) with good interest coverage (30.5). | Low debt-to-equity ratio (0.07) and very strong interest coverage (495.5). |
| Regulatory Risk | Exposure to automotive and energy regulations due to electrification focus. | Lower regulatory exposure, primarily consumer electronics and industrial sectors. |
| Operational Risk | Large scale with 26.4K employees; complexity in supply chain and manufacturing. | Smaller scale (1.6K employees), fabless model reduces operational manufacturing risks. |
| Environmental Risk | Significant due to involvement in power solutions and energy sectors. | Lower environmental footprint given fabless semiconductor business model. |
| Geopolitical Risk | US-based with global operations; potential supply chain disruptions from global tensions. | Also US-based but with less expansive supply chain, somewhat lower geopolitical risk. |
In synthesis, ON Semiconductor carries higher market and environmental risks due to its larger scale and involvement in automotive electrification, which is sensitive to regulatory and geopolitical factors. Cirrus Logic exhibits stronger financial stability with lower debt and operational simplicity, making market fluctuations its primary risk. Investors should weigh ON’s growth potential against its higher volatility and regulatory exposure.
Which Stock to Choose?
ON Semiconductor Corporation has shown mixed income evolution with a 14.19% revenue decline in 2024 but favorable overall growth since 2020. Its profitability metrics, including a 22.21% net margin and 17.88% ROE, are strong, supported by low debt levels and a very favorable B- rating. However, some ratios such as WACC and current ratio are less favorable.
Cirrus Logic, Inc. exhibits a favorable income evolution with steady revenue growth of 5.99% in 2025 and consistent profitability, including a 17.48% net margin and 17.01% ROE. The company benefits from low debt, high interest coverage, and a favorable A- rating. Its financial ratios are predominantly favorable, reflecting efficient capital use and strong financial health.
Considering ratings and overall financial evaluations, Cirrus Logic might appear more favorable due to its very favorable moat, stronger rating, and consistent income growth. Investors with a preference for stability and durable competitive advantages could find Cirrus Logic appealing, while those focused on growth may see potential in ON Semiconductor’s improving profitability despite recent setbacks.
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 ON Semiconductor Corporation and Cirrus Logic, Inc. to enhance your investment decisions:
