Home > Comparison > Technology > ON vs MBLY
The strategic rivalry between ON Semiconductor Corporation and Mobileye Global Inc. shapes the future of technology and automotive innovation. ON Semiconductor, a capital-intensive leader in semiconductors, drives electrification and power solutions. Mobileye, a high-margin pioneer in advanced driver assistance systems, leads autonomous driving technology. This analysis pits industrial scale against cutting-edge innovation to determine which path offers superior risk-adjusted returns for a diversified portfolio in 2026.
Table of contents
Companies Overview
ON Semiconductor and Mobileye Global dominate distinct but overlapping technology frontiers in automotive and sensing markets.
ON Semiconductor Corporation: Intelligent Power and Sensing Leader
ON Semiconductor commands the semiconductor market by providing intelligent power and sensing solutions worldwide. Its core revenue stems from power switching, signal conditioning, and integrated semiconductor products that serve automotive electrification and sustainable energy sectors. In 2026, ON focuses strategically on expanding its advanced logic and power solutions to drive longer-range electric vehicles and fast-charging infrastructure.
Mobileye Global Inc.: Autonomous Driving Innovator
Mobileye Global excels in advanced driver assistance systems (ADAS) and autonomous driving technologies. It generates revenue by deploying safety and navigation solutions that include real-time detection, cloud-enhanced driving aids, and Level 4 autonomous systems. The firm’s 2026 strategy centers on enhancing autonomous vehicle capabilities and expanding its cloud-based road experience management.
Strategic Collision: Similarities & Divergences
ON Semiconductor and Mobileye pursue complementary yet contrasting philosophies: ON favors broad semiconductor applications, while Mobileye specializes in software-driven autonomous systems. Their primary battleground lies in automotive innovation, where ON powers electrification and Mobileye leads driver assistance and autonomy. Investors will find ON offers diversification in power technologies, whereas Mobileye presents a focused play on evolving autonomous mobility.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | ON Semiconductor Corporation (ON) | Mobileye Global Inc. (MBLY) |
|---|---|---|
| Revenue | 6.0B | 1.9B |
| Cost of Revenue | 4.1B | 990M |
| Operating Expenses | 1.2B | 1.3B |
| Gross Profit | 1.9B | 904M |
| EBITDA | 888M | 140M |
| EBIT | 202M | -377M |
| Interest Expense | 71M | 0 |
| Net Income | 121M | -392M |
| EPS | 0.29 | -0.48 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company operates with greater efficiency and momentum in converting revenue into profit.
ON Semiconductor Corporation Analysis
ON Semiconductor’s revenue declined by 15% in 2025, falling to $6B from $7B the prior year. Net income plunged sharply by 90%, settling at just $121M. Gross margin remains solid at 32%, but net margin slipped to 2%, reflecting weakening profitability. The latest year shows eroding efficiency and significant profit contraction, signaling operational challenges.
Mobileye Global Inc. Analysis
Mobileye grew revenue 15% to $1.9B in 2025, with gross profit rising 22% to $904M. However, it posted a net loss of $392M, despite improving EBIT by 88%. Gross margin stands strong at nearly 48%, but negative net margin at -21% signals ongoing investment or scaling costs. Momentum is positive, but profitability remains elusive.
Margin Stability vs. Growth Momentum
ON Semiconductor delivers higher absolute profits but suffers from steep declines in revenue and earnings. Mobileye shows robust revenue and gross profit growth, yet continues to operate at a net loss. For investors, ON offers scale and positive net income, but Mobileye’s profile suits those favoring growth potential and improving operational leverage despite current losses.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | ON Semiconductor Corporation (ON) | Mobileye Global Inc. (MBLY) |
|---|---|---|
| ROE | 1.58% | -3.30% |
| ROIC | 6.24% | -3.64% |
| P/E | 183.9 | -21.6 |
| P/B | 2.90 | 0.71 |
| Current Ratio | 4.52 | 6.10 |
| Quick Ratio | 2.98 | 5.30 |
| D/E | 0.45 | 0.01 |
| Debt-to-Assets | 27.7% | 0.54% |
| Interest Coverage | 10.54 | 0 |
| Asset Turnover | 0.48 | 0.15 |
| Fixed Asset Turnover | 1.77 | 4.00 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Ratios act as a company’s DNA, revealing hidden risks and operational excellence that numbers alone often mask.
ON Semiconductor Corporation
ON Semiconductor displays weak profitability with a low ROE of 1.58% and a thin net margin of 2.02%. Its valuation appears stretched, marked by a high P/E of 183.93 and elevated EV/sales near 3.93. The firm reinvests heavily, favoring R&D over dividends, which aligns with its neutral ROIC of 6.24% but signals caution for income-focused investors.
Mobileye Global Inc.
Mobileye reveals negative profitability metrics, including a -3.3% ROE and a -20.7% net margin, reflecting operational challenges. Despite favorable valuation ratios such as a low P/B of 0.71 and a negative P/E, its current ratio is high but flagged unfavorable, indicating liquidity concerns. The company prioritizes growth via R&D, as it pays no dividends and shows a neutral overall ratio profile.
Valuation Stretch vs. Profitability Struggles
ON Semiconductor’s stretched valuation contrasts with Mobileye’s operational losses and more attractive price multiples. ON offers modest profitability with reinvestment, while Mobileye’s negative returns underscore execution risk. Investors seeking stability may prefer ON’s profile; those focused on turnaround potential might find Mobileye’s valuation appealing despite operational headwinds.
Which one offers the Superior Shareholder Reward?
I compare ON Semiconductor and Mobileye’s shareholder rewards by examining their distribution philosophies and capital returns. Neither pays dividends, focusing instead on reinvestment and buybacks. ON’s payout ratio is zero; it sustains growth via strong free cash flow and healthy buyback capacity. Mobileye also avoids dividends but invests heavily in R&D, reflected in negative margins and low free cash flow per share. ON’s buyback activity, supported by a 3.45 free cash flow per share and an operating cash flow coverage ratio above 0.5, signals more disciplined capital allocation. Mobileye’s negative net margins and volatile cash flow ratios suggest a riskier reinvestment model. I conclude ON Semiconductor offers a superior total return profile for 2026 investors due to its sustainable buybacks and robust cash generation.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of ON Semiconductor Corporation and Mobileye Global Inc.:
ON Semiconductor shows moderate strength in discounted cash flow and return on assets, but struggles with return on equity and debt management. Mobileye excels in discounted cash flow and balance sheet strength, yet suffers from weak profitability metrics and valuation concerns. ON Semiconductor offers a more balanced profile, while Mobileye relies heavily on its strong financial stability and growth potential.
Bankruptcy Risk: Solvency Showdown
Mobileye’s Altman Z-Score of 7.76 surpasses ON Semiconductor’s 5.31, signaling a safer financial position and a lower bankruptcy risk in this cycle:
Financial Health: Quality of Operations
ON Semiconductor’s Piotroski F-Score of 6 suggests average financial health, outperforming Mobileye’s score of 3, which flags potential internal weaknesses and operational risks:
How are the two companies positioned?
This section dissects the operational DNA of ON and MBLY by comparing revenue distribution and internal dynamics. The goal is to confront their economic moats to identify the more resilient competitive advantage.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how ON Semiconductor Corporation and Mobileye Global Inc. diversify their income streams and where their primary sector bets lie:
ON Semiconductor displays a more diversified revenue mix with significant contributions from its Power Solutions Group at $2.8B and Intelligent Sensing Group at $928M in 2025. Mobileye Global relies heavily on a single dominant segment, Mobileye, which anchors $1.85B of its revenue. ON’s spread reduces concentration risk and signals a broad infrastructure foothold. Mobileye’s focus suggests ecosystem lock-in but exposes it to segment-specific volatility.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of ON Semiconductor Corporation and Mobileye Global Inc. based on diversification, profitability, financials, innovation, global presence, and market share:
ON Strengths
- Diverse revenue streams across multiple product groups
- Strong global footprint with significant sales in Asia, UK, US
- Favorable quick ratio and debt metrics indicate solid liquidity and capital structure
MBLY Strengths
- Favorable cost of capital and valuation metrics support investment appeal
- Very low debt levels reduce financial risk
- Strong fixed asset turnover suggests efficient asset use
ON Weaknesses
- Low profitability metrics with unfavorable net margin and ROE
- High WACC exceeds ROIC, indicating value destruction
- Elevated current ratio suggests excess working capital
- Asset turnover below industry norms signals inefficiency
MBLY Weaknesses
- Negative profitability across net margin, ROE, and ROIC
- Zero interest coverage raises solvency concerns
- Limited product diversification with main revenue from single segment
- High current ratio indicates potential liquidity inefficiency
ON shows broad product diversification and geographic reach but struggles with profitability and operational efficiency. MBLY benefits from strong asset efficiency and capital structure but faces significant profitability and diversification challenges. These contrasts highlight differing strategic priorities and risk profiles.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only barrier protecting long-term profits from the relentless erosion of competition. Let’s dissect the true sources of defensibility:
ON Semiconductor Corporation: Cost Advantage in Power Solutions
ON’s competitive edge lies in its cost leadership in intelligent power semiconductors. This manifests in stable gross margins around 32%, but shrinking ROIC signals weakening profitability. Expansion into EV and fast-charging markets could deepen the moat if execution improves by 2026.
Mobileye Global Inc.: Network Effects in Autonomous Driving
Mobileye’s moat stems from its rich data-driven network effects in ADAS and autonomy, unlike ON’s cost focus. High gross margins near 48% and rapid revenue growth highlight its scaling advantage. However, persistent negative EBIT and declining ROIC threaten durability despite growth opportunities in cloud-enhanced driver assistance.
Cost Leadership vs. Network Effects: Who Defends Better?
Both firms show declining ROICs, signaling value destruction. ON leverages cost advantages in mature semiconductor markets, while Mobileye rides network effects in emerging autonomy. Yet, neither demonstrates a sustainably positive economic moat in 2026. ON’s broader product base may offer more resilience, but both face uphill battles to defend market share effectively.
Which stock offers better returns?
The past year reveals contrasting dynamics: ON Semiconductor shows a moderate overall decline with a recent sharp rally, while Mobileye suffers a steep drop and continued weakness.
Trend Comparison
ON Semiconductor’s 12-month trend is bearish with a -3.31% decline, but recent weeks saw a 43.73% price surge, indicating accelerating recovery momentum. Volatility remains elevated with an 11.47% standard deviation.
Mobileye’s stock fell dramatically by -70.89% over the year, maintaining a bearish trend with decelerating losses. Recent months show a further -22.25% drop and minimal volatility at 1.04%.
ON Semiconductor outperforms Mobileye, delivering a far smaller yearly loss and a strong recent rebound, while Mobileye’s decline persists with no sign of reversal.
Target Prices
The analyst consensus suggests mixed expectations for ON Semiconductor and Mobileye Global.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| ON Semiconductor Corporation | 51 | 75 | 62.4 |
| Mobileye Global Inc. | 11 | 28 | 16.71 |
ON Semiconductor’s consensus target of 62.4 sits below its current price of 72.21, signaling potential downside risk. Mobileye’s consensus target of 16.71 exceeds the current price of 9.19, indicating upside potential for investors.
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How do institutions grade them?
ON Semiconductor Corporation Grades
This table summarizes the latest grades assigned to ON Semiconductor Corporation by major institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Neutral | 2026-02-10 |
| Citigroup | Maintain | Neutral | 2026-02-10 |
| Wells Fargo | Maintain | Overweight | 2026-02-10 |
| Benchmark | Downgrade | Hold | 2026-02-10 |
| Truist Securities | Maintain | Hold | 2026-02-10 |
| Cantor Fitzgerald | Maintain | Neutral | 2026-02-10 |
| Rosenblatt | Maintain | Neutral | 2026-02-10 |
| Piper Sandler | Maintain | Overweight | 2026-02-10 |
| Keybanc | Maintain | Overweight | 2026-02-10 |
| Mizuho | Maintain | Outperform | 2026-02-10 |
Mobileye Global Inc. Grades
This table shows the recent grades given to Mobileye Global Inc. by recognized grading firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Tigress Financial | Maintain | Buy | 2026-01-29 |
| RBC Capital | Maintain | Sector Perform | 2026-01-23 |
| Morgan Stanley | Maintain | Equal Weight | 2026-01-23 |
| Needham | Maintain | Buy | 2026-01-23 |
| UBS | Maintain | Neutral | 2026-01-23 |
| Canaccord Genuity | Maintain | Buy | 2026-01-23 |
| Wells Fargo | Maintain | Overweight | 2026-01-23 |
| HSBC | Downgrade | Hold | 2026-01-23 |
| UBS | Maintain | Neutral | 2026-01-14 |
| Wolfe Research | Downgrade | Peer Perform | 2026-01-12 |
Which company has the best grades?
Mobileye Global Inc. holds a generally stronger rating profile, with multiple Buy and Overweight grades. ON Semiconductor shows more Neutral and Hold grades, signaling mixed sentiment. This difference may affect investor confidence and perceived growth potential.
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
ON Semiconductor Corporation
- Faces intense semiconductor sector rivalry with moderate product diversification.
Mobileye Global Inc.
- Operates in a competitive ADAS and autonomous vehicle market with high technological innovation pressure.
2. Capital Structure & Debt
ON Semiconductor Corporation
- Moderate leverage (D/E 0.45) with favorable debt-to-assets ratio; interest coverage at 2.85x is neutral.
Mobileye Global Inc.
- Minimal debt (D/E 0.01) with strong balance sheet but zero interest coverage raises red flags on earnings capacity.
3. Stock Volatility
ON Semiconductor Corporation
- Higher beta (1.54) indicates elevated market sensitivity and price swings.
Mobileye Global Inc.
- Low beta (0.56) suggests relative price stability amid market fluctuations.
4. Regulatory & Legal
ON Semiconductor Corporation
- Subject to global semiconductor export controls and environmental regulations.
Mobileye Global Inc.
- Faces stringent automotive safety and autonomous vehicle regulatory scrutiny worldwide.
5. Supply Chain & Operations
ON Semiconductor Corporation
- Semiconductor supply chain disruptions impact production and delivery timelines.
Mobileye Global Inc.
- Relies on complex hardware-software integration, vulnerable to component shortages and software bugs.
6. ESG & Climate Transition
ON Semiconductor Corporation
- Invests in electrification enabling technologies, supporting a positive ESG narrative.
Mobileye Global Inc.
- Less exposed to physical climate risks but must address software security and ethical AI issues.
7. Geopolitical Exposure
ON Semiconductor Corporation
- US-based with global operations, exposed to US-China trade tensions.
Mobileye Global Inc.
- Israeli headquarters and global reach expose it to Middle East geopolitical risks and global tech tensions.
Which company shows a better risk-adjusted profile?
ON Semiconductor’s most impactful risk lies in market volatility and high cost of capital, reflected in its unfavorable ROE and net margin. Mobileye struggles with earnings and profitability, demonstrated by its negative ROIC and zero interest coverage. Despite Mobileye’s weak profitability, its pristine balance sheet and low beta offer a more stable risk profile. Recent data shows ON’s beta at 1.54 versus Mobileye’s 0.56, signaling greater price instability for ON. Mobileye, however, must overcome its operating losses to justify this relative stability. Overall, Mobileye’s conservative capital structure grants it a better risk-adjusted profile amid current market pressures.
Final Verdict: Which stock to choose?
ON Semiconductor’s superpower lies in its solid balance sheet and strong liquidity, making it a reliable cash machine amid a turbulent tech cycle. Its point of vigilance is the declining profitability and value destruction trend, which could weigh on returns. It fits an Aggressive Growth portfolio willing to tolerate near-term headwinds for potential recovery.
Mobileye’s strategic moat is its cutting-edge autonomous driving technology and high R&D investment, which commands a premium in innovation leadership. While its financials reflect ongoing losses and value erosion, it offers better balance sheet safety than ON. It suits a GARP investor focused on long-term tech disruption with moderate risk tolerance.
If you prioritize stable liquidity and a resilient cash conversion cycle, ON Semiconductor is the compelling choice due to its superior financial footing despite earnings pressures. However, if you seek high innovation exposure and can endure extended profitability challenges, Mobileye offers better strategic positioning for future growth. Both require cautious risk management given their value destruction patterns.
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 ON Semiconductor Corporation and Mobileye Global Inc. to enhance your investment decisions:
