In the dynamic world of semiconductors, two giants stand out: Intel Corporation (INTC) and Analog Devices, Inc. (ADI). Both companies have carved out significant niches within the technology sector, engaging in the design and manufacture of essential components that power various electronic devices. Their overlapping markets and innovative approaches make them intriguing candidates for comparison. As we delve into their financial health, growth strategies, and market position, I aim to uncover which company presents the more compelling opportunity for investors like yourself.
Table of contents
Company Overview
Intel Corporation Overview
Intel Corporation (ticker: INTC), founded in 1968 and headquartered in Santa Clara, California, is a leading player in the semiconductor industry. The company focuses on designing, manufacturing, and selling a diverse range of computer products and technologies. Intel’s offerings include central processing units (CPUs), chipsets, and advanced solutions for cloud service providers and enterprises. Additionally, its strategic partnerships, particularly in artificial intelligence, signal its commitment to innovation. With a market cap of approximately $158B, Intel plays a pivotal role in powering computing solutions across various sectors, including healthcare, automotive, and industrial applications.
Analog Devices, Inc. Overview
Analog Devices, Inc. (ticker: ADI), established in 1965 and based in Wilmington, Massachusetts, specializes in integrated circuits and systems that utilize analog and digital signal processing technologies. The company’s product portfolio features data converters, power management solutions, and high-performance amplifiers, catering to diverse markets, including industrial, automotive, and communications. With a market cap of around $125B, Analog Devices is recognized for its precision and innovation in converting real-world signals into digital data, positioning it as a key player in the semiconductor space.
Key Similarities and Differences
Both Intel and Analog Devices operate within the semiconductor industry, focusing on technology solutions for various sectors. However, Intel primarily emphasizes computing platforms and cloud solutions, while Analog Devices specializes in analog signal processing and integrated circuits. This distinction reflects their unique approaches to addressing market demands.
Income Statement Comparison
The following table provides a detailed comparison of the latest income statements for Intel Corporation (INTC) and Analog Devices, Inc. (ADI), highlighting key financial metrics.
| Metric | Intel Corporation (INTC) | Analog Devices, Inc. (ADI) |
|---|---|---|
| Revenue | 53.1B | 11.0B |
| EBITDA | 1.2B | 5.0B |
| EBIT | -10.2B | 3.0B |
| Net Income | -18.8B | 2.3B |
| EPS | -4.38 | 4.59 |
Interpretation of Income Statement
In the most recent fiscal year, Intel Corporation reported a decline in revenue to 53.1B, with a significant net loss of 18.8B, reflecting ongoing operational challenges and elevated expenses. In contrast, Analog Devices demonstrated robust performance, with revenue increasing to 11.0B and net income of 2.3B, showcasing strong margin stability. The EBITDA margin for ADI suggests effective cost management, while INTC’s negative EBIT and net income indicate a pressing need for strategic restructuring. Overall, ADI appears to be on a growth trajectory, whereas INTC needs a focused turnaround plan to recover from its setbacks.
Financial Ratios Comparison
Below is a comparative table showcasing the most recent revenue and financial ratios for Intel Corporation (INTC) and Analog Devices, Inc. (ADI).
| Metric | [Company A: INTC] | [Company B: ADI] |
|---|---|---|
| ROE | -18.89% | 6.70% |
| ROIC | -12.18% | 5.55% |
| P/E | -4.63 | 51.05 |
| P/B | 0.88 | 3.42 |
| Current Ratio | 1.33 | 2.19 |
| Quick Ratio | 0.98 | 1.68 |
| D/E | 0.50 | 0.25 |
| Debt-to-Assets | 25.45% | 17.90% |
| Interest Coverage | -14.17 | 9.45 |
| Asset Turnover | 0.27 | 0.23 |
| Fixed Asset Turnover | 0.49 | 0.00 |
| Payout ratio | -8.53% | 84.88% |
| Dividend yield | 1.84% | 1.66% |
Interpretation of Financial Ratios
The financial ratios for INTC indicate significant challenges, with negative return metrics and a concerning interest coverage ratio, suggesting financial instability. In contrast, ADI displays robust margins and acceptable solvency ratios, highlighting its operational efficiency and profitability. However, the high P/E ratio may indicate overvaluation. Investors should weigh these factors carefully, considering the risks associated with INTC’s performance compared to ADI’s relative stability.
Dividend and Shareholder Returns
Intel Corporation (INTC) continues to pay dividends with a recent annual yield of 1.84% and a payout ratio of -8.53%, indicating potential sustainability issues due to negative net income. Despite these challenges, it engages in share buybacks, which may impact its capital structure. Conversely, Analog Devices, Inc. (ADI) offers a dividend yield of 1.66% with a payout ratio of 84.88%, reflecting a balanced approach to returning value to shareholders. Both companies’ strategies should align with long-term value creation, though risks remain, particularly for Intel.
Strategic Positioning
Intel Corporation (INTC) holds a significant market share in the semiconductor industry, focusing on a diverse range of products including CPUs and AI solutions. Its competitive pressure is intense due to rapid technological advancements and emerging players. In contrast, Analog Devices, Inc. (ADI) excels in analog and mixed-signal technologies, carving out a niche in high-performance applications. Both companies face challenges from ongoing technological disruption, necessitating continuous innovation to maintain their positions.
Stock Comparison
Over the past year, the stock price movements of Intel Corporation (INTC) and Analog Devices, Inc. (ADI) have exhibited significant dynamics that warrant careful analysis for informed investment decisions.
Trend Analysis
Intel Corporation (INTC) Over the past year, INTC has experienced a price change of -23.59%, indicating a bearish trend. The stock has seen notable volatility, with a standard deviation of 8.47. The highest price recorded was 48.15, while the lowest was 18.89. Notably, the trend is characterized by acceleration, which could suggest increasing momentum in the downward direction.
Analog Devices, Inc. (ADI) In contrast, ADI has shown a positive price change of 35.1% over the same period, confirming a bullish trend. Despite this overall positive performance, the trend is currently experiencing deceleration, reflected by a standard deviation of 19.0. The stock peaked at 252.2 and reached a low of 164.6. Recently, ADI has registered a price change of 2.78%, which remains within a neutral range, suggesting a period of stabilization following strong gains.
In summary, while INTC’s bearish and accelerating trend signals caution, ADI’s bullish yet decelerating trend indicates potential for continued growth but with a watchful eye on market dynamics.
Analyst Opinions
Recent analyst recommendations for Intel Corporation (INTC) indicate a cautious stance, with a rating of C+. Analysts note concerns regarding its return on equity and overall market position. In contrast, Analog Devices, Inc. (ADI) has garnered a more favorable B rating, highlighting strong performance in discounted cash flow and asset returns. The consensus for INTC leans towards a hold, while ADI is viewed more favorably, suggesting a buy. I recommend keeping an eye on both stocks, considering the varying analyst sentiments and underlying fundamentals.
Stock Grades
In this section, I present the most recent stock ratings for Intel Corporation (INTC) and Analog Devices, Inc. (ADI) from reliable grading companies.
Intel Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Tigress Financial | Maintain | Buy | 2025-11-04 |
| Barclays | Maintain | Equal Weight | 2025-10-27 |
| Mizuho | Maintain | Neutral | 2025-10-24 |
| Wedbush | Maintain | Neutral | 2025-10-24 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-24 |
| Cantor Fitzgerald | Maintain | Neutral | 2025-10-24 |
| Morgan Stanley | Maintain | Equal Weight | 2025-10-24 |
| Truist Securities | Maintain | Hold | 2025-10-24 |
| Rosenblatt | Maintain | Sell | 2025-10-24 |
| JP Morgan | Maintain | Underweight | 2025-10-24 |
Analog Devices, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Benchmark | Maintain | Buy | 2025-11-26 |
| B of A Securities | Maintain | Buy | 2025-11-26 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-09-30 |
| Piper Sandler | Maintain | Neutral | 2025-08-21 |
| Barclays | Maintain | Equal Weight | 2025-08-21 |
| JP Morgan | Maintain | Overweight | 2025-08-21 |
| Keybanc | Maintain | Overweight | 2025-08-21 |
| Wells Fargo | Maintain | Equal Weight | 2025-08-21 |
| Needham | Maintain | Hold | 2025-08-21 |
| Truist Securities | Maintain | Hold | 2025-08-21 |
Overall, both stocks demonstrate a stable outlook, with multiple grading companies maintaining their grades. Notably, ADI has received strong support with multiple “Buy” and “Overweight” ratings, indicating a positive sentiment among analysts. Meanwhile, INTC shows a mix of ratings, suggesting a cautious approach may be warranted.
Target Prices
The consensus target prices for the selected companies reflect optimistic projections from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Intel Corporation (INTC) | 52 | 20 | 35.22 |
| Analog Devices, Inc. (ADI) | 300 | 265 | 288.38 |
For Intel Corporation, the consensus target price of 35.22 is slightly above its current price of 35.83, suggesting moderate growth expectations. In contrast, Analog Devices shows a strong consensus target of 288.38, well above its current price of 252.02, indicating significant bullish sentiment among analysts.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Intel Corporation (INTC) and Analog Devices, Inc. (ADI) based on their most recent performance metrics.
| Criterion | Intel Corporation (INTC) | Analog Devices, Inc. (ADI) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Low (Net Margin: 3.11%) | High (Net Margin: 20.58%) |
| Innovation | Moderate | High |
| Global presence | Strong | Strong |
| Market Share | Moderate | High |
| Debt level | Moderate (Debt/Equity: 0.47) | Low (Debt/Equity: 0.25) |
Key takeaways from this analysis indicate that while both companies have strong global presences, Analog Devices demonstrates superior profitability and lower debt levels, making it a potentially safer investment choice. Intel, on the other hand, has room for improvement in profitability and diversification strategies.
Risk Analysis
The table below outlines the key risks associated with Intel Corporation (INTC) and Analog Devices, Inc. (ADI) as of the most recent reporting year.
| Metric | Intel Corporation (INTC) | Analog Devices, Inc. (ADI) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | High | Low |
| Environmental Risk | Moderate | Low |
| Geopolitical Risk | High | Moderate |
In synthesizing these risks, Intel faces higher operational and market risks largely due to its competitive landscape and ongoing geopolitical tensions affecting its supply chain. Analog Devices, while facing some market fluctuations, has shown resilience with lower operational risks.
Which one to choose?
When comparing Intel Corporation (INTC) and Analog Devices, Inc. (ADI), the fundamentals reveal significant differences. Intel has faced a bearish trend, with a price drop of 23.59%, and carries a C+ rating, indicating some financial struggles, particularly with a negative net profit margin of -35.32% in 2024. In contrast, Analog Devices displays a bullish trend with a price increase of 35.1% and a stronger B rating, supported by a solid net profit margin of 20.58% in 2025.
For growth-oriented investors, ADI appears to be a more favorable option, while those seeking stability may consider INTC, albeit with caution due to its current financial challenges. Specific risks include competitive pressures and market volatility, which could impact both companies’ future performance.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Intel Corporation and Analog Devices, Inc. to enhance your investment decisions:
