In the rapidly evolving semiconductor industry, ON Semiconductor Corporation (ON) and indie Semiconductor, Inc. (INDI) stand out as key players, each with distinct innovation strategies and market focuses. ON specializes in intelligent sensing and power solutions, crucial for the electrification of the automotive sector, while INDI targets advanced driver assistance systems and connectivity solutions. This comparison will illuminate which company presents a more compelling investment opportunity, guiding you toward informed decisions for your portfolio.
Table of contents
Company Overview
ON Semiconductor Corporation Overview
ON Semiconductor Corporation, headquartered in Phoenix, Arizona, is a leading player in the semiconductor industry, focusing on intelligent sensing and power solutions. Incorporated in 1992, ON aims to drive the electrification of the automotive sector, providing technologies that enhance electric vehicles’ efficiency and sustainability. With a diversified portfolio that includes analog, discrete, and integrated products, ON serves various end-markets, including automotive and industrial applications. The company’s commitment to innovation is reflected in its advanced solutions, such as image sensors and power management technologies. As of now, ON holds a market capitalization of approximately $20.5B, showcasing its strong market position and growth potential.
indie Semiconductor, Inc. Overview
Founded in 2007 and based in Aliso Viejo, California, indie Semiconductor, Inc. specializes in automotive semiconductors and software solutions, particularly for advanced driver assistance systems and connected vehicles. The company’s products enhance user experience through applications in infotainment, telematics, and electrification. Indie Semiconductor’s focus on photonic components and various technology platforms positions it uniquely within the automotive semiconductor space. With a market cap of around $721M, indie is a smaller but agile player, actively pursuing innovative solutions to meet the evolving needs of the automotive industry.
Key similarities and differences
Both ON Semiconductor and indie Semiconductor operate in the semiconductor industry, focusing on automotive applications. However, ON has a broader market presence and product range, while indie specializes more narrowly in advanced driver assistance and user experience solutions. This distinction reflects their respective market strategies and growth trajectories, with ON being more established and diversified compared to indie’s targeted approach.
Income Statement Comparison
The following table presents a comparative analysis of the income statements for ON Semiconductor Corporation and indie Semiconductor, Inc. for the most recent fiscal year.
| Metric | ON Semiconductor | indie Semiconductor |
|---|---|---|
| Market Cap | 20.5B | 721.3M |
| Revenue | 7.08B | 216.7M |
| EBITDA | 2.54B | -93.9M |
| EBIT | 1.90B | -137.0M |
| Net Income | 1.57B | -132.6M |
| EPS | 3.68 | -0.76 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, ON Semiconductor reported a revenue decline from 8.25B to 7.08B, while net income decreased from 2.18B to 1.57B, indicating a challenging market environment. Despite this, ON maintained robust EBITDA margins, showcasing operational resilience. Conversely, indie Semiconductor continues to struggle with negative margins and a substantial net loss. The lack of profitability highlights ongoing challenges in scaling its operations. Overall, ON Semiconductor demonstrates stronger financial health compared to indie Semiconductor, which requires strategic adjustments to improve its financial performance.
Financial Ratios Comparison
The following table provides a comparative overview of key financial ratios for ON Semiconductor Corporation (ON) and indie Semiconductor, Inc. (INDI) based on the most recent data available.
| Metric | [Company A: ON] | [Company B: INDI] |
|---|---|---|
| ROE | 17.88% | -31.73% |
| ROIC | 11.88% | -19.25% |
| P/E | 17.13 | -10.01 |
| P/B | 3.06 | 2.64 |
| Current Ratio | 5.06 | 4.82 |
| Quick Ratio | 3.38 | 4.23 |
| D/E | 0.38 | 0.95 |
| Debt-to-Assets | 23.90% | 21.29% |
| Interest Coverage | 28.37 | -15.66 |
| Asset Turnover | 0.50 | 0.23 |
| Fixed Asset Turnover | 1.61 | 4.30 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0% | 0% |
Interpretation of Financial Ratios
The analysis reveals that ON exhibits strong performance metrics, particularly in return ratios (ROE and ROIC) and solvency ratios (current and quick ratios). In contrast, INDI’s ratios reflect significant challenges, with negative returns and poor interest coverage indicating financial distress. I recommend exercising caution when considering investments in INDI, while ON appears to be a more stable and promising option for investors.
Dividend and Shareholder Returns
ON Semiconductor Corporation (ON) does not pay dividends, reflecting its focus on reinvesting profits for growth opportunities. The company engages in share buybacks, which can be a positive signal for shareholder value. In contrast, indie Semiconductor, Inc. (INDI) also does not distribute dividends, primarily due to its negative net income and ongoing investments in R&D. This strategy could align with long-term value creation, but the sustainability of such an approach remains a concern given the current financial challenges both companies face.
Strategic Positioning
ON Semiconductor Corporation (ON) holds a significant market share in the semiconductor industry, particularly in power solutions and intelligent sensing technologies. With a market cap of approximately 20.5B, it faces competitive pressure from indie Semiconductor, Inc. (INDI), which specializes in automotive applications. As the demand for electrification and advanced driver assistance systems rises, both companies must navigate technological disruptions and innovate to maintain their market positions. I remain cautious, as the semiconductor sector can be volatile and heavily influenced by global supply chain dynamics.
Stock Comparison
Over the past year, the stock prices of ON Semiconductor Corporation (ON) and indie Semiconductor, Inc. (INDI) have experienced significant fluctuations, reflecting broader market dynamics and company-specific events that have influenced investor sentiment.
Trend Analysis
For ON Semiconductor Corporation (ON), the overall price change is -33.63% over the past year, indicating a bearish trend. The stock has shown notable acceleration in its downward trajectory, with a highest price of 81.14 and a lowest price of 33.7. The standard deviation of 12.59 suggests a moderate level of volatility. Recently, from September 14, 2025, to November 30, 2025, ON has experienced a slight positive change of 4.1%, but the trend slope remains negative at -0.13.
For indie Semiconductor, Inc. (INDI), the overall price change is -49.72%, also indicating a bearish trend with acceleration. The stock’s price ranged from a high of 7.49 to a low of 1.6. The standard deviation of 1.5 indicates lower volatility compared to ON. In the most recent analysis period, INDI has seen a further decline of 8.25%, with a trend slope of -0.01, signaling a continuation of its downward movement.
Both stocks are currently facing challenges, and careful consideration is needed when evaluating their potential for recovery or further decline.
Analyst Opinions
Recent analyst recommendations for ON Semiconductor Corporation (ON) suggest a “Buy” rating, with analysts highlighting strong discounted cash flow and return on assets scores. Analysts appreciate ON’s robust fundamentals, citing its ability to leverage market opportunities effectively. Conversely, indie Semiconductor, Inc. (INDI) has received a “Hold” rating, primarily due to weak performance in return on equity and discounted cash flow metrics. The consensus for ON is bullish, while INDI remains in a cautious stance, indicating a mixed outlook for the current year.
Stock Grades
In this section, I provide the latest stock ratings from reputable grading companies for ON Semiconductor Corporation and indie Semiconductor, Inc.
ON Semiconductor Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | maintain | Equal Weight | 2025-11-24 |
| Baird | maintain | Neutral | 2025-11-04 |
| Rosenblatt | maintain | Neutral | 2025-11-04 |
| Truist Securities | maintain | Hold | 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 |
| Wells Fargo | maintain | Overweight | 2025-08-05 |
| B of A Securities | downgrade | Neutral | 2025-08-05 |
indie Semiconductor, Inc. Grades
| 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 |
Overall, both companies have maintained stable grades from multiple respected firms, indicating a consistent sentiment among analysts. ON has a mix of neutral to overweight ratings, while INDI continues to receive strong buy ratings from Benchmark, suggesting investor confidence in its performance.
Target Prices
The current target consensus for ON Semiconductor Corporation and indie Semiconductor, Inc. reflects a positive outlook among analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ON Semiconductor Corporation | 64 | 51 | 58.33 |
| indie Semiconductor, Inc. | 8 | 8 | 8 |
For ON Semiconductor, the price is currently at 50.24, suggesting room for growth based on the analysts’ consensus. Meanwhile, indie Semiconductor’s stock trades at 3.56, aligning perfectly with the consensus target.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of ON Semiconductor Corporation (ON) and indie Semiconductor, Inc. (INDI), providing a clear comparison based on key criteria.
| Criterion | ON Semiconductor (ON) | indie Semiconductor (INDI) |
|---|---|---|
| Diversification | Strong presence in automotive and industrial sectors | Focused on automotive applications |
| Profitability | High profitability margins (Net Profit Margin: 22.2%) | Negative profitability (Net Profit Margin: -61.2%) |
| Innovation | Leading in power and sensing technologies | Developing advanced driver assistance systems |
| Global presence | Operates in multiple global markets | Primarily US-based operations |
| Market Share | Significant market share in semiconductors | Smaller, niche market player |
| Debt level | Moderate debt levels (Debt to Equity: 0.38) | High debt levels (Debt to Equity: 0.95) |
In summary, ON Semiconductor demonstrates stronger profitability and diversification compared to indie Semiconductor, which is still establishing its market presence and faces significant challenges in profitability and debt levels.
Risk Analysis
The following table outlines key risks associated with ON Semiconductor Corporation (ON) and indie Semiconductor, Inc. (INDI).
| Metric | ON Semiconductor Corporation | indie Semiconductor, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Low | High |
| Environmental Risk | Moderate | Moderate |
| Geopolitical Risk | Moderate | High |
In analyzing the risks, I find that ON faces moderate market and geopolitical risks, primarily influenced by fluctuating semiconductor demands and trade policies. In contrast, INDI experiences high operational and market risks due to its nascent stage and reliance on rapid technological advancements.
Which one to choose?
When comparing ON Semiconductor Corporation (ON) and indie Semiconductor, Inc. (INDI), ON stands out with stronger fundamentals. ON boasts a market cap of $26.9B, a gross profit margin of 45.4%, and a net profit margin of 22.2%. Its price-to-earnings (P/E) ratio is relatively favorable at 17.1, compared to INDI’s negative earnings metrics and a much lower market cap of $708M. Analyst ratings reflect this disparity, with ON receiving a grade of B, while INDI holds a C.
For growth-oriented investors, ON appears favorable due to its solid financial health and recent stock trends, despite a bearish market shift. Conversely, risk-averse investors may want to steer clear of INDI due to its persistent losses and negative trend indicators.
Note: Both companies face significant risks related to competition and market dependence.
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 ON Semiconductor Corporation and indie Semiconductor, Inc. to enhance your investment decisions:
