In today’s rapidly evolving technological landscape, I am comparing ON Semiconductor Corporation (ON) and Ouster, Inc. (OUST) to help investors navigate their choices. Both companies operate within the technology sector, focusing on the innovative applications of sensors—ON in semiconductor solutions and Ouster in lidar technology. With a shared commitment to advancing automation and efficiency, this analysis will uncover which company holds the most promise for potential investors. Let’s explore their strategies and market positions to find the better investment opportunity for your portfolio.
Table of contents
Company Overview
ON Semiconductor Corporation Overview
ON Semiconductor Corporation (ticker: ON) is a leading provider of intelligent sensing and power solutions, primarily serving the automotive and industrial sectors. With a market cap of approximately $20.5B, ON focuses on electrification technologies that enhance the efficiency and functionality of electric vehicles and renewable energy systems. Its diverse product offerings span across three key segments: Power Solutions, Advanced Solutions, and Intelligent Sensing. The company is headquartered in Phoenix, Arizona, and employs around 26,400 people. ON’s innovations are pivotal in developing advanced semiconductor technologies, including image sensors and power management solutions, which are essential for a sustainable energy future.
Ouster, Inc. Overview
Ouster, Inc. (ticker: OUST) specializes in high-resolution digital lidar sensors and supporting software, catering to sectors such as automotive and robotics. With a market cap of around $1.4B, Ouster aims to provide 3D vision capabilities that enhance operational safety and efficiency. Based in San Francisco, California, Ouster has a workforce of approximately 292 employees and leverages its patented technology to deliver cost-effective and scalable lidar solutions. Founded in 2020, the company is positioned at the forefront of the growing demand for autonomous systems and smart infrastructure.
Key similarities and differences
Both ON Semiconductor and Ouster operate within the technology sector, focusing on innovative solutions that enhance modern machinery and vehicles. While ON specializes in semiconductor products for power and sensing applications, Ouster’s niche lies in high-resolution lidar technology. The key difference is ON’s broader scope in semiconductor manufacturing versus Ouster’s concentrated focus on advanced sensing technologies.
Income Statement Comparison
The following table provides a comparative overview of the income statements for ON Semiconductor Corporation and Ouster, Inc. for the fiscal year 2024, highlighting key financial metrics.
| Metric | ON Semiconductor (ON) | Ouster, Inc. (OUST) |
|---|---|---|
| Market Cap | 20.54B | 1.38B |
| Revenue | 7.08B | 111.10M |
| EBITDA | 2.54B | -79.95M |
| EBIT | 1.90B | -94.69M |
| Net Income | 1.57B | -97.05M |
| EPS | 3.68 | -2.08 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In 2024, ON Semiconductor exhibited a strong revenue of 7.08B, despite a slight decline from the previous year, indicating a trend of stabilization. The net income also remained robust at 1.57B, showcasing solid profit margins. In contrast, Ouster, Inc. faced significant challenges with a declining revenue of 111.10M and a net loss of -97.05M, reflecting an unstable performance. The sharp drop in margins for Ouster suggests a need for strategic adjustments, while ON’s maintained margins signal effective cost management amidst fluctuating revenues. Overall, ON shows resilience, whereas Ouster requires careful monitoring for recovery.
Financial Ratios Comparison
The table below presents a comparative analysis of financial ratios for ON Semiconductor Corporation (Ticker: ON) and Ouster, Inc. (Ticker: OUST) based on the most recent fiscal year data.
| Metric | [Company A: ON] | [Company B: OUST] |
|---|---|---|
| ROE | 17.88% | -53.64% |
| ROIC | 11.88% | -51.12% |
| P/E | 17.13 | -5.87 |
| P/B | 3.06 | 1.58 |
| Current Ratio | 5.06 | 2.80 |
| Quick Ratio | 3.38 | 2.59 |
| D/E | 0.38 | 0.11 |
| Debt-to-Assets | 23.90% | 7.33% |
| Interest Coverage | 28.37 | -57.15 |
| Asset Turnover | 0.50 | 0.40 |
| Fixed Asset Turnover | 1.61 | 4.54 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
In analyzing the financial ratios, ON Semiconductor exhibits strong performance with robust ROE and ROIC, indicating effective capital utilization. In contrast, Ouster shows negative returns on equity and invested capital, raising red flags about profitability. While ON’s current and quick ratios suggest solid liquidity, OUST’s ratios, though acceptable, reflect underlying financial distress. The significant interest coverage ratio for ON implies low risk of default, whereas OUST’s negative values indicate serious concerns about its ability to meet financial obligations.
Dividend and Shareholder Returns
ON Semiconductor Corporation (ON) does not currently pay dividends, focusing instead on reinvestment for growth and innovation. This strategy aligns with long-term value creation, although it carries risks associated with market fluctuations. Importantly, ON engages in share buyback programs, which can enhance shareholder value by reducing share dilution. In contrast, Ouster, Inc. (OUST) also refrains from dividend payments due to ongoing losses and a prioritization of capital for development, though it similarly engages in buybacks. Both companies must ensure that their approaches support sustainable growth.
Strategic Positioning
ON Semiconductor Corporation (ON) commands a significant market share in the semiconductor sector, leveraging its advanced power solutions and intelligent sensing technologies. With a market cap of $20.5B, ON faces competitive pressure from emerging players, particularly in electric vehicle technology. Conversely, Ouster, Inc. (OUST), with a market cap of $1.38B, specializes in high-resolution lidar sensors, navigating a dynamic landscape marked by rapid technological disruption and increasing demand for automation in various industries. Both companies must strategically position themselves to adapt to ongoing market changes.
Stock Comparison
In analyzing the weekly stock price movements of ON Semiconductor Corporation (ON) and Ouster, Inc. (OUST) over the past year, we observe significant price dynamics that reflect underlying trading sentiments and market conditions.
Trend Analysis
For ON Semiconductor Corporation (ON), the stock has experienced a -33.63% change over the past year, indicating a bearish trend. The highest price recorded was 81.14, while the lowest was 33.7, showcasing notable volatility with a standard deviation of 12.59. The trend has shown acceleration, suggesting that the negative price momentum is intensifying. In the recent period from September 14, 2025, to November 30, 2025, there was a 4.1% increase, although the overall trend remains negative with a slight downward slope of -0.13.
For Ouster, Inc. (OUST), the stock has witnessed an impressive 228.47% increase over the past year, categorizing it as a bullish trend. The range of prices has been from a low of 4.82 to a high of 35.8, with a standard deviation of 8.43, indicating substantial price fluctuations. Despite this overall bullish trend, the recent analysis from September 14, 2025, to November 30, 2025, shows a -20.69% decline, with a trend slope of -0.83, reflecting a deceleration in momentum during this timeframe.
Analyst Opinions
Recent analyst recommendations for ON Semiconductor Corporation (ON) indicate a consensus rating of “Buy” with an overall score of 3. Analysts highlight strong performance in return on assets and discounted cash flow, suggesting solid growth potential.
Conversely, Ouster, Inc. (OUST) has received a “Sell” rating with an overall score of 1. Analysts, including those from reputable firms, point to poor performance metrics across key financial ratios, raising concerns about sustainability.
In summary, I recommend considering ON as a strong buy, while OUST may pose significant risks for investors.
Stock Grades
In the current market landscape, it’s essential to stay informed about stock ratings that can guide investment decisions. Here’s a look at the latest grades for ON Semiconductor Corporation and Ouster, Inc.
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 |
Ouster, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Cantor Fitzgerald | upgrade | Overweight | 2025-11-07 |
| Cantor Fitzgerald | upgrade | Overweight | 2025-11-06 |
| Rosenblatt | maintain | Buy | 2025-11-05 |
| WestPark Capital | maintain | Buy | 2025-11-05 |
| WestPark Capital | upgrade | Buy | 2025-08-13 |
| Oppenheimer | maintain | Outperform | 2025-07-16 |
| WestPark Capital | downgrade | Hold | 2025-06-12 |
| WestPark Capital | upgrade | Buy | 2025-05-09 |
| WestPark Capital | maintain | Hold | 2025-03-21 |
| Cantor Fitzgerald | maintain | Overweight | 2025-03-21 |
Overall, we see a stable trend for ON Semiconductor with multiple firms maintaining their ratings, primarily in the Neutral to Equal Weight range. In contrast, Ouster has experienced several upgrades, particularly from Cantor Fitzgerald, indicating a more positive outlook and growing investor confidence.
Target Prices
The current consensus target prices for ON Semiconductor Corporation and Ouster, Inc. reflect positive analyst expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ON Semiconductor Corporation | 64 | 51 | 58.33 |
| Ouster, Inc. | 39 | 33 | 36.67 |
For ON Semiconductor, the target consensus of 58.33 is above its current stock price of 50.24, suggesting potential upside. Similarly, Ouster’s consensus of 36.67 indicates it may have room for growth compared to its price of 22.92.
Strengths and Weaknesses
Below is a comparative analysis of the strengths and weaknesses of ON Semiconductor Corporation (ON) and Ouster, Inc. (OUST):
| Criterion | ON Semiconductor Corporation (ON) | Ouster, Inc. (OUST) |
|---|---|---|
| Diversification | Strong product range across multiple sectors | Limited to lidar technology |
| Profitability | 22.2% net profit margin | Negative margins |
| Innovation | High R&D investment in semiconductors | Focus on niche lidar innovations |
| Global presence | Extensive global operations | Primarily US-based |
| Market Share | Leading in semiconductor solutions | Small market share in lidar |
| Debt level | Moderate (debt/equity: 0.38) | Low debt (debt/equity: 0.11) |
Key takeaways indicate that ON Semiconductor demonstrates robust profitability and a strong global presence, while Ouster’s innovation is centered on a niche market with significant challenges in profitability. For investors, ON presents a more stable investment opportunity, whereas Ouster may carry higher risks but potential for growth in a specialized field.
Risk Analysis
In this section, I provide a risk analysis for two companies, ON Semiconductor Corporation (ON) and Ouster, Inc. (OUST). The following table outlines various risks associated with each company.
| Metric | ON Semiconductor Corporation | Ouster, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Moderate | High |
| Geopolitical Risk | Low | Moderate |
Both companies face significant operational and market risks. ON has a stable market position, while OUST is more vulnerable due to its high operational losses and market volatility. Recent data shows OUST’s net income per share at -10.1, indicating substantial financial strain, while ON’s profitability is comparatively robust with a net income per share of 5.07.
Which one to choose?
In comparing ON Semiconductor Corporation (ON) and Ouster, Inc. (OUST), ON appears to be the more robust investment choice. ON has demonstrated strong fundamentals with a net profit margin of 22.2% and a solid return on equity of 17.9%, supported by a market cap of approximately 27B. The stock trend for ON indicates a bearish sentiment with a price change of -33.6%, but its long-term fundamentals remain resilient. In contrast, OUST, with a market cap of about 569M, has faced significant losses, reflected in its net income margin of -87.3% and a C- rating from analysts.
For aggressive investors seeking growth, ON may offer a better opportunity, while risk-averse investors might want to avoid OUST due to its high volatility and weaker financial health. Key risks for both companies include market dependence and competition within their sectors.
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 Ouster, Inc. to enhance your investment decisions:
