In today’s rapidly evolving tech landscape, ON Semiconductor Corporation and MicroVision, Inc. stand out as two innovative players in the semiconductor and hardware industries, respectively. Both companies are focused on cutting-edge technologies that cater to the automotive sector, yet they approach innovation from different angles. ON Semiconductor excels in power solutions and intelligent sensing, while MicroVision specializes in lidar sensors for autonomous driving. In this article, I will analyze their strengths and weaknesses to help investors identify which company offers the most compelling opportunity.
Table of contents
Company Overview
ON Semiconductor Corporation Overview
ON Semiconductor Corporation, trading under the ticker ON, is a prominent player in the semiconductor industry, focusing on intelligent sensing and power solutions. Established in 1992 and headquartered in Phoenix, Arizona, the company serves a global market with innovative technologies aimed at electrifying the automotive industry, facilitating fast-charging systems, and promoting sustainable energy solutions. ON Semiconductor operates through three key segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group, providing a diverse range of semiconductor products that cater to various applications. Their portfolio includes analog, discrete, and integrated products, alongside design services for government clients, positioning them as a critical partner in advancing technology across multiple sectors.
MicroVision, Inc. Overview
MicroVision, Inc., with the ticker MVIS, specializes in developing lidar sensors and micro-display technologies for automotive safety and augmented reality applications. Founded in 1993 and based in Redmond, Washington, the company leverages its expertise in laser beam scanning technology to create solutions for both automotive and consumer markets. MicroVision’s products, including PicoP scanning technology and lidar systems, are aimed primarily at original equipment manufacturers (OEMs) and original design manufacturers (ODMs), emphasizing their commitment to enhancing safety in autonomous driving and enriching user experiences in smart home systems.
Key similarities and differences
Both ON Semiconductor and MicroVision operate in the technology sector and focus on advancing innovative solutions; however, their business models differ significantly. ON Semiconductor primarily targets the semiconductor market with a broad array of products across multiple sectors, while MicroVision concentrates specifically on lidar and display technologies, catering to niche applications in automotive and consumer electronics. This divergence highlights distinct market positions and growth trajectories for each company.
Income Statement Comparison
In this section, I present a comparative analysis of the income statements for ON Semiconductor Corporation and MicroVision, Inc. for the most recent fiscal year, allowing for a clearer understanding of their financial performances.
| Metric | ON Semiconductor | MicroVision |
|---|---|---|
| Market Cap | 20.5B | 287.5M |
| Revenue | 7.08B | 4.70M |
| EBITDA | 2.54B | -70.98M |
| EBIT | 1.90B | -75.20M |
| Net Income | 1.57B | -96.92M |
| EPS | 3.68 | -0.46 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
ON Semiconductor has demonstrated a strong performance in 2024, with a notable revenue of 7.08B, although it has decreased from 8.25B in 2023. Their net income of 1.57B indicates a healthy profitability, albeit with a slight contraction in margins compared to the previous year. Conversely, MicroVision continues to struggle, reporting a significantly low revenue of 4.70M and a net loss of 96.92M. This reflects ongoing challenges in operational efficiency and market penetration. Overall, while ON Semiconductor shows solid stability, MicroVision’s persistent losses signal higher risks for investors.
Financial Ratios Comparison
In the table below, I’ve compiled the most recent revenue and financial ratios for ON Semiconductor Corporation (ON) and MicroVision, Inc. (MVIS) to provide a clear comparison of their financial health.
| Metric | [Company A: ON] | [Company B: MVIS] |
|---|---|---|
| ROE | 17.88% | -198.72% |
| ROIC | 11.88% | -83.29% |
| P/E | 17.13 | -5.87 |
| P/B | 3.06 | 5.63 |
| Current Ratio | 5.06 | 1.79 |
| Quick Ratio | 3.38 | 1.74 |
| D/E | 0.38 | 1.06 |
| Debt-to-Assets | 0.24 | 0.43 |
| Interest Coverage | 28.37 | -19.19 |
| Asset Turnover | 0.50 | 0.04 |
| Fixed Asset Turnover | 1.61 | 0.20 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
The financial ratios indicate a stark contrast between ON and MVIS. ON displays strong metrics, particularly in profitability and liquidity, with a healthy ROE and robust interest coverage. Conversely, MVIS’s ratios reveal significant financial distress, including negative margins and a concerning debt-to-equity ratio. Investors should exercise caution with MVIS due to its negative earnings and operational challenges, while ON appears to be a more stable investment candidate.
Dividend and Shareholder Returns
ON Semiconductor Corporation (ON) does not currently pay dividends, reflecting a strategy focused on reinvestment for growth rather than immediate shareholder returns. The absence of dividends may allow for funding of R&D and acquisitions, which can align with long-term value creation. However, ON is actively engaged in share buybacks, indicating a commitment to returning value to shareholders through capital management.
In contrast, MicroVision, Inc. (MVIS) also does not pay dividends and is in a high-growth phase, prioritizing investments over direct shareholder returns. Like ON, MVIS has share buybacks in place, although it faces significant operational challenges. Both companies’ lack of dividends suggests a strategy that could support long-term growth, albeit with inherent risks due to their financial conditions.
Strategic Positioning
ON Semiconductor Corporation (ON) commands a significant market share in the semiconductor industry, driven by its advanced power solutions and intelligent sensing technologies, supporting the electrification trend in automotive and renewable energy sectors. In contrast, MicroVision, Inc. (MVIS) faces competitive pressure in the lidar sensor market, primarily catering to automotive safety and autonomous driving applications. Both companies must navigate rapid technological disruptions while leveraging their unique innovations to maintain and grow their positions in an evolving landscape.
Stock Comparison
In this section, I will analyze the weekly stock price movements of ON Semiconductor Corporation (ON) and MicroVision, Inc. (MVIS) over the past year, highlighting key price dynamics and trading behaviors.
Trend Analysis
ON Semiconductor Corporation (ON) Over the past year, ON’s stock has experienced a significant decline of -33.63%. This bearish trend has shown signs of acceleration, with notable price fluctuations between a high of 81.14 and a low of 33.7. Recent analysis indicates a slight positive variation of +4.1% from September 14, 2025, to November 30, 2025, although the overall trend remains bearish due to the considerable year-over-year decline. The standard deviation of 12.59 suggests considerable volatility in its pricing.
MicroVision, Inc. (MVIS) MVIS has faced a more severe downturn, with a price change of -64.59% over the past year, categorizing it firmly in a bearish trend. This stock has also shown deceleration in its price movements, having fluctuated between a high of 2.66 and a low of 0.82. More recently, the stock has declined by -17.38% from September 14, 2025, to November 30, 2025. With a standard deviation of 0.42, MVIS demonstrates lower volatility compared to ON, but the significant negative price movement indicates a challenging market position.
In summary, both companies are currently in bearish trends, with ON showing slight recent improvement while MVIS continues to decline. Investors should approach these stocks with caution, focusing on risk management and market conditions before making investment decisions.
Analyst Opinions
Recent recommendations for ON Semiconductor Corporation (ON) indicate a “Buy” rating from analysts, with a solid overall score of 3. Analysts highlight strong performance in return on assets and discounted cash flow, suggesting confidence in growth potential. Conversely, MicroVision, Inc. (MVIS) has received a “Sell” rating, marked by a low overall score of 1. Analysts cite significant concerns regarding return on equity and cash flow metrics. The consensus for ON is a strong buy, while MVIS is trending towards sell for 2025.
Stock Grades
I have analyzed the most recent stock grades for ON Semiconductor Corporation (ON) and MicroVision, Inc. (MVIS) from reputable grading companies.
ON Semiconductor Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | maintain | Equal Weight | 2025-11-24 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-04 |
| TD Cowen | maintain | Buy | 2025-11-04 |
| Truist Securities | maintain | Hold | 2025-11-04 |
| Baird | maintain | Neutral | 2025-11-04 |
| Rosenblatt | maintain | Neutral | 2025-11-04 |
| UBS | maintain | Neutral | 2025-10-27 |
| B of A Securities | maintain | Neutral | 2025-09-05 |
| JP Morgan | maintain | Neutral | 2025-08-05 |
| Truist Securities | maintain | Hold | 2025-08-05 |
MicroVision, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| D. Boral Capital | maintain | Buy | 2025-11-12 |
| WestPark Capital | maintain | Buy | 2025-10-21 |
| WestPark Capital | maintain | Buy | 2025-09-05 |
| D. Boral Capital | maintain | Buy | 2025-09-02 |
| WestPark Capital | maintain | Buy | 2025-08-27 |
| D. Boral Capital | maintain | Buy | 2025-08-11 |
| D. Boral Capital | maintain | Buy | 2025-05-21 |
| D. Boral Capital | maintain | Buy | 2025-05-13 |
| WestPark Capital | maintain | Buy | 2025-03-27 |
| D. Boral Capital | maintain | Buy | 2025-03-25 |
The overall trend indicates that ON is receiving consistent ratings around “Equal Weight” and “Hold” from several analysts, suggesting a cautious stance. Conversely, MVIS maintains a strong “Buy” rating from multiple sources, highlighting positive investor sentiment in this stock.
Target Prices
The current target price consensus for ON Semiconductor Corporation and MicroVision, Inc. indicates varying analyst expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ON Semiconductor Corporation | 64 | 51 | 58.33 |
| MicroVision, Inc. | 5 | 5 | 5 |
For ON Semiconductor, analysts have a consensus target of 58.33, suggesting potential upside compared to its current price of 50.24. Meanwhile, MicroVision shows a consensus target of 5, indicating stability around its current price of 0.94.
Strengths and Weaknesses
Below is a comparative table summarizing the strengths and weaknesses of ON Semiconductor Corporation (ON) and MicroVision, Inc. (MVIS).
| Criterion | ON Semiconductor Corporation (ON) | MicroVision, Inc. (MVIS) |
|---|---|---|
| Diversification | High, with multiple segments | Low, focused on Lidar tech |
| Profitability | Strong margins; Net Profit Margin: 22.2% | Negative margins; Net Profit Margin: -20.6% |
| Innovation | High investment in R&D | Limited innovation; struggling with product development |
| Global presence | Strong global footprint | Limited international reach |
| Market Share | Significant in semiconductors | Small, niche market share |
| Debt level | Manageable debt; Debt to Equity: 0.38 | High debt; Debt to Equity: 1.06 |
In summary, ON Semiconductor exhibits a robust financial profile and diversified operations, making it a strong candidate for investors. Conversely, MicroVision’s high debt and lack of profitability raise significant risks.
Risk Analysis
The following table outlines the key risks associated with ON Semiconductor Corporation and MicroVision, Inc. for the most recent fiscal year.
| Metric | ON Semiconductor (ON) | MicroVision (MVIS) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Low | High |
| Environmental Risk | Moderate | Moderate |
| Geopolitical Risk | Moderate | High |
In summary, ON Semiconductor faces moderate market and environmental risks but has a solid operational foundation. In contrast, MicroVision is significantly exposed to high operational and market risks, which could hinder its growth potential. Given recent performance metrics, it’s crucial to approach investments in MicroVision with caution.
Which one to choose?
When comparing ON Semiconductor Corporation (ON) and MicroVision, Inc. (MVIS), ON appears to be the more favorable investment choice. ON has demonstrated strong fundamentals, with a market cap of approximately 27B and a net income margin of 22.2%. Its profitability ratios, including a return on equity of 28% and a return on assets of 11.6%, indicate a solid financial position. In contrast, MVIS has struggled significantly, posting negative margins and a D+ rating from analysts, reflecting its ongoing financial challenges.
For investors focused on growth, ON is the clear choice due to its robust performance metrics and positive analyst sentiment. Conversely, risk-tolerant investors who seek speculative opportunities might consider MVIS, although it carries substantial risks related to competition and market volatility.
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 MicroVision, Inc. to enhance your investment decisions:
