In today’s rapidly evolving technological landscape, the competition between ON Semiconductor Corporation and Mobileye Global Inc. presents a captivating study for investors. Both companies operate in sectors crucial to modern innovation—semiconductors and automotive technology—with overlapping interests in electric vehicles and advanced driver assistance systems. As they strive to redefine their industries through cutting-edge solutions, I will analyze which of these companies stands out as the more compelling investment opportunity. Let’s dive in and uncover the potential each has to offer.
Table of contents
Company Overview
ON Semiconductor Corporation Overview
ON Semiconductor Corporation, headquartered in Phoenix, Arizona, is a leading provider of intelligent sensing and power solutions globally. Established in 1992, the company is pivotal in the electrification of the automotive industry, enabling the production of lighter and longer-range electric vehicles. ON Semiconductor’s diverse product offerings span across analog, discrete, and integrated semiconductor products, catering to various applications such as power switching, signal conditioning, and voltage regulation. With a market capitalization of approximately $20.5B, ON operates through three segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The company remains committed to sustainable energy solutions, supporting sectors like solar and industrial power.
Mobileye Global Inc. Overview
Mobileye Global Inc., founded in 1999 and based in Jerusalem, Israel, specializes in advanced driver assistance systems (ADAS) and autonomous driving technologies. As a subsidiary of Intel, Mobileye has carved a niche in the automotive industry with its innovative solutions that focus on safety and automation. The company’s offerings include real-time detection systems for road users, cloud-enhanced driver assistance, and comprehensive autonomous driving solutions. With a market capitalization of approximately $9.6B, Mobileye is at the forefront of the shift towards autonomous mobility, providing tools for both consumer vehicles and mobility as a service.
Key similarities and differences
Both companies operate within the technology sector but focus on different aspects of the automotive industry. ON Semiconductor excels in power management and sensing solutions, while Mobileye is dedicated to driver assistance and autonomous driving technologies. Their business models reflect this divergence, with ON emphasizing semiconductor manufacturing and Mobileye concentrating on software and hardware integration for vehicle autonomy.
Income Statement Comparison
The following table presents a detailed comparison of the income statements for ON Semiconductor Corporation and Mobileye Global Inc. for their most recent fiscal years.
| Metric | ON Semiconductor | Mobileye Global |
|---|---|---|
| Market Cap | 20.5B | 9.62B |
| Revenue | 7.08B | 1.65B |
| EBITDA | 2.54B | -2.66B |
| EBIT | 1.90B | -3.16B |
| Net Income | 1.57B | -3.09B |
| EPS | 3.68 | -3.82 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, ON Semiconductor demonstrated strong revenue generation at 7.08B, though it experienced a decline from the previous year (8.25B). Their net income of 1.57B reflects solid profitability, though margins have compressed slightly. Conversely, Mobileye faced significant challenges, reporting a revenue of 1.65B but a substantial net loss of 3.09B, indicating ongoing investment in growth with negative margins. Both companies exhibit contrasting trajectories, with ON showing resilience while Mobileye continues to navigate its developmental phase.
Financial Ratios Comparison
In the table below, I present a comparative analysis of key financial ratios for ON Semiconductor Corporation (ON) and Mobileye Global Inc. (MBLY). These metrics provide insights into the companies’ financial health and operational efficiency.
| Metric | ON | MBLY |
|---|---|---|
| ROE | 17.88% | -25.56% |
| ROIC | 11.88% | -25.70% |
| P/E | 16.47 | -1291.58 |
| P/B | 3.06 | 2.34 |
| Current Ratio | 5.06 | 6.53 |
| Quick Ratio | 3.38 | 5.28 |
| D/E | 0.38 | 0.004 |
| Debt-to-Assets | 23.90% | 0.40% |
| Interest Coverage | 28.37 | 0.00 |
| Asset Turnover | 0.50 | 0.13 |
| Fixed Asset Turnover | 1.61 | 3.61 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
ON’s ratios indicate a strong financial position with solid profitability and efficient use of assets. Its ROE and ROIC are positive, reflecting effective management and capital utilization. In contrast, MBLY shows significant losses with negative ROE and ROIC, raising concerns about its operational viability. Additionally, its high P/E ratio suggests overvaluation, making it critical for investors to assess its future growth potential carefully.
Dividend and Shareholder Returns
ON Semiconductor Corporation (ON) does not pay dividends, reflecting a focus on reinvestment for growth and expansion. This strategy aligns with their robust revenue growth and positive free cash flow, evidenced by share buyback programs that signal confidence in their financial health. Conversely, Mobileye Global Inc. (MBLY) also refrains from paying dividends, likely due to its current losses and the prioritization of R&D. This approach, while risky, may foster long-term value creation as they seek to innovate in the autonomous driving sector. Overall, both companies emphasize reinvestment strategies, which can support sustainable growth but come with inherent risks.
Strategic Positioning
ON Semiconductor Corporation (ON) holds a significant market share in the semiconductor industry, focusing on intelligent power and sensing solutions. Its technological advancements in electric vehicle components position it well against competitors amid growing demand for sustainable energy solutions. Meanwhile, Mobileye Global Inc. (MBLY), specializing in advanced driver assistance systems, faces intense competitive pressure as the automotive sector rapidly evolves toward autonomous technologies. Both companies are navigating a landscape ripe with technological disruption and innovation.
Stock Comparison
In analyzing the stock performance of ON Semiconductor Corporation (ON) and Mobileye Global Inc. (MBLY) over the past year, we observe significant price movements and trading dynamics that reflect broader market conditions and individual company developments.
Trend Analysis
For ON Semiconductor Corporation (ON), the overall price change over the past year is -33.63%, indicating a bearish trend. The stock has experienced notable acceleration in this downward trend, with a standard deviation of 12.59 suggesting increased volatility. The highest price recorded was 81.14, while the lowest was 33.7. Recently, from September 14 to November 30, 2025, the stock saw a slight recovery with a price change of +4.1%, yet the overall trend remains negative.
For Mobileye Global Inc. (MBLY), the overall price change over the same period is -61.23%, also demonstrating a bearish trend. Unlike ON, MBLY’s trend is characterized by deceleration, with a standard deviation of 6.38. The stock reached a high of 32.15 and a low of 10.91. In the recent analysis period from September 14 to November 30, 2025, MBLY’s price declined by -13.15%, reinforcing its challenging market position.
Both stocks exhibit seller dominance in their recent trading periods, with buyer percentages at 40.27% for ON and 38.31% for MBLY, indicating a prevailing trend of selling pressure.
Analyst Opinions
Recent analyst recommendations indicate a mixed outlook for ON Semiconductor Corporation (ON) and Mobileye Global Inc. (MBLY). Analysts have given ON a rating of “B,” suggesting a buy, largely due to strong discounted cash flow and asset return scores. In contrast, MBLY received a “C+” rating, indicating a hold, primarily because of lower scores in return on equity and assets. The consensus for ON is a buy, while MBLY is viewed as more cautious, leaning towards a hold. Overall, I recommend monitoring both stocks closely for further developments.
Stock Grades
In this section, I present the latest stock grades for ON Semiconductor Corporation and Mobileye Global Inc., providing insights into their current market evaluations by reputable grading companies.
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 |
Mobileye Global Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | maintain | Neutral | 2025-11-26 |
| Tigress Financial | maintain | Buy | 2025-10-30 |
| TD Cowen | maintain | Buy | 2025-10-24 |
| Mizuho | maintain | Neutral | 2025-10-24 |
| Barclays | maintain | Equal Weight | 2025-10-10 |
| Goldman Sachs | maintain | Neutral | 2025-09-29 |
| B of A Securities | maintain | Neutral | 2025-09-10 |
| Baird | maintain | Outperform | 2025-09-03 |
| RBC Capital | maintain | Sector Perform | 2025-07-29 |
| Canaccord Genuity | maintain | Buy | 2025-07-25 |
Overall, ON Semiconductor’s grades reflect a consistent evaluation with several firms maintaining their ratings, while Mobileye shows a mix of grades with a strong emphasis on maintaining buy ratings by multiple analysts. This balance suggests a stable outlook for both companies, though investors should consider the broader market context and individual investment strategies.
Target Prices
The consensus target prices for ON Semiconductor Corporation and Mobileye Global Inc. indicate strong expectations for both companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ON Semiconductor Corporation | 64 | 51 | 58.33 |
| Mobileye Global Inc. | 25 | 13 | 18.33 |
For ON Semiconductor, the target consensus of 58.33 suggests a potential upside from the current price of 50.24, while Mobileye’s consensus of 18.33 indicates a significant gap compared to its current price of 11.82.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of ON Semiconductor Corporation and Mobileye Global Inc., allowing investors to assess their investment potential.
| Criterion | ON Semiconductor (ON) | Mobileye Global (MBLY) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (Net Margin: 22.2%) | Negative (Net Margin: -1.9%) |
| Innovation | High | High |
| Global presence | Strong (Operates worldwide) | Expanding (Focus on ADAS) |
| Market Share | Significant | Growing |
| Debt level | Moderate (Debt/Equity: 0.38) | Very Low (Debt/Equity: 0.004) |
Key takeaways from this analysis indicate that ON Semiconductor shows robust profitability and a strong global presence, while Mobileye is focused on innovation in the autonomous driving space but currently faces profitability challenges.
Risk Analysis
In the following table, I present a comparative analysis of risks associated with ON Semiconductor Corporation (ON) and Mobileye Global Inc. (MBLY).
| Metric | ON | MBLY |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Low | High |
| Environmental Risk | Moderate | Low |
| Geopolitical Risk | Moderate | High |
Both companies face unique challenges; however, the most pressing risks include market volatility for MBLY, which could significantly impact its valuation. Additionally, regulatory scrutiny in the automotive sector presents risks for both, though MBLY appears more vulnerable due to its reliance on rapid technological advancements.
Which one to choose?
When comparing ON Semiconductor Corporation (ON) and Mobileye Global Inc. (MBLY), ON appears to be the more robust investment. ON showcases strong fundamentals with a net profit margin of 22.2% and a price-to-earnings ratio of 17.13, indicating healthy profitability. In contrast, MBLY struggles with negative margins and high valuations (P/E ratio of -1291.58), reflecting operational challenges.
Analyst ratings support this view: ON has a solid grade of B, emphasizing its good return on equity and assets, while MBLY’s C+ rating highlights its weaker financial health. Recent stock trends show ON experiencing a minor uptick despite a bearish long-term trend, while MBLY has seen a more significant decline.
Investors focused on growth may prefer ON for its stability and profitability, while those willing to take on higher risks for potential upside might consider MBLY, knowing it faces significant operational hurdles.
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 Mobileye Global Inc. to enhance your investment decisions:
