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The strategic rivalry between Intel Corporation and ON Semiconductor Corporation shapes the semiconductor sector’s evolution. Intel, a capital-intensive technology giant, leads with broad platform products and high-performance computing solutions. ON Semiconductor, a focused innovator, specializes in intelligent sensing and power solutions driving automotive electrification and sustainable energy. This analysis contrasts their operational models to identify which trajectory offers superior risk-adjusted returns for a diversified portfolio in 2026.
Table of contents
Companies Overview
Intel Corporation and ON Semiconductor Corporation stand as pivotal players in the global semiconductor market.
Intel Corporation: Semiconductor Powerhouse
Intel dominates as a leading designer and manufacturer of computer products worldwide. Its core revenue stems from platform products like central processing units and chipsets, alongside non-platform products including accelerators and memory solutions. In 2026, Intel sharpens its strategic focus on high-performance computing and AI-driven platforms, extending its reach into embedded applications and autonomous driving technologies.
ON Semiconductor Corporation: Intelligent Power Innovator
ON Semiconductor specializes in intelligent sensing and power solutions, primarily driving electrification in automotive and sustainable energy sectors. Its revenue engine revolves around analog and mixed-signal semiconductors for power switching, signal conditioning, and voltage regulation. The company’s 2026 strategy emphasizes expanding electric vehicle technologies and fast-charging infrastructure to capitalize on growing demand in green energy and automotive electrification.
Strategic Collision: Similarities & Divergences
Intel and ON Semiconductor share a commitment to semiconductor innovation but diverge in their business philosophies. Intel pursues a broad platform approach targeting compute-intensive markets, while ON focuses on specialized power and sensing solutions. Their primary battleground lies in automotive electrification and AI-enabled applications. Intel offers scale and diversified tech exposure; ON provides targeted niche leadership, shaping distinct investment profiles.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Intel Corporation (INTC) | ON Semiconductor Corporation (ON) |
|---|---|---|
| Revenue | 52.85B | 7.08B |
| Cost of Revenue | 34.38B | 3.87B |
| Operating Expenses | 20.60B | 1.45B |
| Gross Profit | 18.48B | 3.22B |
| EBITDA | 11.19B | 2.54B |
| EBIT | 2.51B | 1.90B |
| Interest Expense | 953M | 62M |
| Net Income | -267M | 1.57B |
| EPS | -0.08 | 3.68 |
| Fiscal Year | 2025 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company operates its business with greater financial efficiency and profitability discipline.
Intel Corporation Analysis
Intel’s revenue declined slightly from $53.1B in 2024 to $52.9B in 2025, while net income swung from a heavy loss of -$18.8B in 2024 to a narrower loss of -$267M in 2025. Gross margin improved to 35%, signaling better cost control, but net margin remains negative at -0.5%. The company shows signs of stabilizing losses but struggles to convert revenue into profit.
ON Semiconductor Corporation Analysis
ON’s revenue fell 14% from $8.25B in 2023 to $7.08B in 2024, with net income down 28% to $1.57B. Despite recent declines, ON maintains a strong gross margin of 45% and a robust net margin of 22%. The company’s EBIT margin at 27% highlights operational efficiency, though short-term momentum shows some pressure on profitability.
Margin Strength vs. Revenue Scale
ON Semiconductor leads with superior profitability metrics, delivering healthy margins and solid net income despite revenue softness. Intel’s scale is larger but undermined by persistent net losses and margin weakness. For investors prioritizing profitability and margin resilience, ON’s profile appears more attractive than Intel’s ongoing recovery challenges.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of each company:
| Ratios | Intel Corporation (INTC) | ON Semiconductor Corporation (ON) |
|---|---|---|
| ROE | -0.23% | 17.88% |
| ROIC | -0.02% | 11.88% |
| P/E | -658.4 | 17.1 |
| P/B | 1.54 | 3.06 |
| Current Ratio | 2.02 | 5.06 |
| Quick Ratio | 1.65 | 3.38 |
| D/E (Debt-to-Equity) | 0.41 | 0.38 |
| Debt-to-Assets | 22.0% | 23.9% |
| Interest Coverage | -2.23 | 28.37 |
| Asset Turnover | 0.25 | 0.50 |
| Fixed Asset Turnover | 0.50 | 1.61 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
| Fiscal Year | 2025 | 2024 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, exposing hidden risks and revealing operational efficiency crucial for informed investment decisions.
Intel Corporation
Intel shows weak profitability with negative ROE and margins, signaling operational challenges. Its P/E ratio is unusually low, reflecting market skepticism rather than undervaluation. Intel’s moderate valuation contrasts with a lack of dividends, as it reinvests heavily in R&D, aiming to fuel future growth despite current inefficiencies.
ON Semiconductor Corporation
ON Semiconductor demonstrates strong profitability with a 17.9% ROE and robust net margin. Its valuation is reasonable, with a P/E of 17.1, suggesting the stock is fairly priced. The company maintains solid capital discipline and boosts shareholder value through efficient operations, although it does not pay dividends, focusing instead on growth and innovation.
Balanced Profitability vs. Growth Potential
ON Semiconductor offers a superior blend of profitability and operational efficiency compared to Intel’s troubled returns and reinvestment strategy. Investors seeking stable returns and growth may favor ON’s profile, while Intel’s turnaround potential presents a higher risk and reward trade-off.
Which one offers the Superior Shareholder Reward?
Intel Corporation (INTC) pays a modest dividend yield near 1.8% in 2024 but shows negative free cash flow (-3B per share), challenging dividend sustainability. Its buyback program is negligible given financial strain. ON Semiconductor (ON) pays no dividend but generates robust free cash flow (~2.8B per share) and aggressively repurchases shares. Historically, ON’s strong margins and cash flow support sustainable buybacks, enhancing total returns. I see ON’s capital allocation as superior, favoring growth and shareholder value over risky dividends. In 2026, ON offers a more attractive total return profile for disciplined investors.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Intel Corporation and ON Semiconductor Corporation, highlighting their financial strengths and weaknesses:
Intel exhibits a narrow advantage in valuation with a favorable Price-to-Book score (4) but lags significantly in operational returns and cash flow, scoring very unfavorable in ROE, ROA, and DCF. ON Semiconductor delivers a more balanced profile with moderate scores in DCF (3), ROE (2), and ROA (3), reflecting more efficient asset use and profitability. Both firms share moderate debt levels, but ON’s diversified strengths suggest a more resilient competitive position.
Bankruptcy Risk: Solvency Showdown
ON Semiconductor’s Altman Z-Score of 4.95 places it comfortably in the safe zone, signaling strong solvency and low bankruptcy risk. Intel’s score of 2.49 falls into the grey zone, suggesting moderate financial distress and heightened risk under adverse conditions:
Financial Health: Quality of Operations
ON Semiconductor’s Piotroski score of 6 outperforms Intel’s 4, indicating healthier internal financial metrics and operational quality. Intel’s lower score flags potential red flags in profitability or liquidity compared to ON’s more robust profile:
How are the two companies positioned?
This section dissects INTC and ON’s operational DNA by comparing revenue distribution and internal dynamics. The goal is to confront their economic moats and identify which model offers the most resilient, sustainable advantage today.
Revenue Segmentation: The Strategic Mix
The following visual comparison dissects how Intel Corporation and ON Semiconductor Corporation diversify their income streams and reveals their primary sector bets:
Intel’s revenue dwarfs ON Semiconductor’s, anchored by its Client Computing Group at $32.2B and strong Data Center Group at $16.9B. Intel’s mix balances between computing, foundry services, and data centers, showcasing ecosystem lock-in and infrastructure dominance. ON Semiconductor pivots around Power Solutions Group at $3.35B, with Analog and Intelligent Sensing segments smaller but consistent. Intel’s broader diversification reduces concentration risk, while ON’s focus exposes it to cyclical demand in analog and power electronics.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of Intel Corporation and ON Semiconductor Corporation:
Intel Corporation Strengths
- Diversified segments including Client Computing and Data Center
- Strong global presence in US, Singapore, Taiwan
- Favorable liquidity ratios with current ratio 2.02
- Moderate debt-to-assets at 22%
- Innovation via Intel Foundry Services revenue
ON Semiconductor Corporation Strengths
- High profitability with net margin 22.21% and ROE 17.88%
- Favorable interest coverage at 30.49
- Favorable debt-to-assets at 23.9%
- Quick ratio 3.38 indicates solid liquidity
- Balanced revenue from Analog, Power, and Intelligent Sensing
Intel Corporation Weaknesses
- Negative net margin (-0.51%) and ROIC (-0.02%) indicate profitability pressure
- Unfavorable asset turnover of 0.25 limits efficiency
- Dividend yield at 0% offers no income
- PE ratio negative yet rated favorable, signaling valuation concerns
ON Semiconductor Corporation Weaknesses
- High current ratio 5.06 may indicate inefficient asset use
- Unfavorable WACC at 10.18% raises capital costs
- Price-to-book ratio 3.06 unfavorable, suggesting premium valuation
- Dividend yield also zero
Intel’s broad diversification and global scale contrast with ON’s stronger profitability and liquidity. Intel faces challenges in profitability and asset efficiency, while ON manages costs and capital structure more effectively despite some valuation and capital use concerns. These factors will shape each company’s strategic priorities going forward.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only safeguard protecting long-term profits from relentless competition and market pressures. Here is how two semiconductor giants stack up:
Intel Corporation: Scale and Legacy-Driven Intangible Assets
Intel’s moat centers on decades of brand strength and manufacturing scale, reflected in its vast global footprint and platform dominance. However, declining ROIC signals eroding efficiency. New AI and autonomous driving initiatives may deepen its moat if execution improves in 2026.
ON Semiconductor Corporation: Emerging Cost Advantage and Power Solutions
ON’s moat arises from specialized analog and power semiconductor solutions that address growing EV and sustainable energy markets. Unlike Intel, ON shows improving ROIC and margin expansion. Its focused innovation in electrification strengthens its competitive positioning through 2026.
Verdict: Legacy Intangibles vs. Specialized Innovation
Intel’s intangible asset moat is broad but currently weakening due to falling ROIC and value destruction. ON’s narrower moat is deepening, evidenced by rising ROIC and robust profitability. I see ON better equipped to defend and grow market share in the evolving semiconductor landscape.
Which stock offers better returns?
The past year shows Intel Corporation’s price rising steadily with accelerating momentum, while ON Semiconductor Corporation’s trend reveals a significant decline before recent gains.
Trend Comparison
Intel Corporation’s stock gained 5.61% over the past 12 months, marking a bullish trend with accelerating price momentum and a standard deviation of 8.11. The stock ranged between 18.89 and 46.96.
ON Semiconductor Corporation’s stock fell 24.14% over the past 12 months, reflecting a bearish trend despite acceleration in price change and higher volatility at 11.66 standard deviation.
Intel’s positive 5.61% return surpasses ON Semiconductor’s -24.14%, delivering the stronger market performance over the analyzed year.
Target Prices
Analysts present a clear consensus on target prices for Intel and ON Semiconductor, reflecting their growth outlooks.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Intel Corporation | 20 | 66 | 46.95 |
| ON Semiconductor Corporation | 51 | 64 | 59.25 |
Intel’s consensus target aligns closely with its current price of $46.47, indicating moderate upside potential. ON Semiconductor’s target suggests a slight upside from its current $59.89, reflecting bullish analyst sentiment.
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How do institutions grade them?
The following tables summarize recent institutional grades for Intel Corporation and ON Semiconductor Corporation:
Intel Corporation Grades
Here are the recent grades assigned by reputable institutions for Intel Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | Maintain | Sector Perform | 2026-01-23 |
| Keybanc | Maintain | Overweight | 2026-01-23 |
| Evercore ISI Group | Maintain | In Line | 2026-01-23 |
| Needham | Maintain | Hold | 2026-01-23 |
| Benchmark | Maintain | Buy | 2026-01-23 |
| Rosenblatt | Maintain | Sell | 2026-01-23 |
| UBS | Maintain | Neutral | 2026-01-23 |
| Citigroup | Maintain | Neutral | 2026-01-23 |
| Stifel | Maintain | Hold | 2026-01-23 |
| Wedbush | Maintain | Neutral | 2026-01-23 |
ON Semiconductor Corporation Grades
Below are the recent institutional grades for ON Semiconductor Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | Maintain | Neutral | 2026-01-21 |
| B. Riley Securities | Maintain | Neutral | 2026-01-20 |
| Stifel | Maintain | Hold | 2026-01-16 |
| Citigroup | Maintain | Neutral | 2026-01-15 |
| Wells Fargo | Maintain | Overweight | 2026-01-15 |
| 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 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-04 |
Which company has the best grades?
Intel displays a wider spectrum of ratings, ranging from Sell to Buy, indicating divergent analyst views. ON Semiconductor’s grades cluster around Neutral to Overweight, reflecting more consensus. Investors may interpret Intel’s mixed signals as higher uncertainty and ON’s as moderate stability.
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
Intel Corporation
- Faces intense competition with declining net margin and unfavorable ROIC signaling margin pressure.
ON Semiconductor Corporation
- Benefits from strong net margin and ROIC but contends with higher beta, indicating competitive volatility.
2. Capital Structure & Debt
Intel Corporation
- Maintains moderate leverage with debt-to-equity at 0.41 and interest coverage neutral at 2.63x.
ON Semiconductor Corporation
- Shows slightly better leverage metrics with debt-to-equity 0.38 and strong interest coverage at 30.49x.
3. Stock Volatility
Intel Corporation
- Beta of 1.35 indicates moderately high volatility relative to the market.
ON Semiconductor Corporation
- Higher beta at 1.54 signals greater stock price swings and market sensitivity.
4. Regulatory & Legal
Intel Corporation
- Subject to stringent tech regulations and geopolitical scrutiny in semiconductor supply.
ON Semiconductor Corporation
- Faces regulatory challenges in automotive and power sectors with evolving environmental standards.
5. Supply Chain & Operations
Intel Corporation
- Large scale and legacy manufacturing complexity increase operational risk and supply chain rigidity.
ON Semiconductor Corporation
- More focused on power and sensing chips, but supply chain susceptible to raw material price volatility.
6. ESG & Climate Transition
Intel Corporation
- Under pressure to reduce carbon footprint amid global sustainability mandates.
ON Semiconductor Corporation
- Positioned to benefit from electrification trends but must manage resource-intensive production impact.
7. Geopolitical Exposure
Intel Corporation
- High exposure to US-China tensions impacting manufacturing and exports.
ON Semiconductor Corporation
- Exposure less pronounced but risks from global trade disruptions remain significant.
Which company shows a better risk-adjusted profile?
ON Semiconductor’s key risk is its higher stock volatility and regulatory exposure in automotive electrification. Intel’s most impactful risk lies in operational complexity paired with weak profitability metrics. ON’s stronger profitability, healthier balance sheet, and safer Altman Z-Score position it with a better risk-adjusted profile. Recent data shows Intel’s negative net margin and ROIC contrast sharply with ON’s robust 22% net margin, justifying caution for Intel investors.
Final Verdict: Which stock to choose?
Intel Corporation’s superpower lies in its vast scale and entrenched industry position, offering the potential to leverage future technology cycles. However, its declining profitability and value destruction serve as a point of vigilance. Intel fits best in portfolios willing to tolerate near-term challenges for possible long-term turnaround.
ON Semiconductor stands out with a strengthening strategic moat driven by improving profitability and efficient capital use. Its financial stability and growing returns offer a safer profile relative to Intel’s volatility. ON suits investors seeking growth at a reasonable price with moderate risk exposure.
If you prioritize scale and a potential tech rebound, Intel commands attention despite its current value erosion. However, if you seek improving fundamentals and more stable capital efficiency, ON Semiconductor offers better stability and a clearer path to value creation. Both present distinct analytical scenarios depending on your risk appetite and investment horizon.
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 Intel Corporation and ON Semiconductor Corporation to enhance your investment decisions:
