Home > Comparison > Technology > ON vs SWKS
The strategic rivalry between ON Semiconductor Corporation and Skyworks Solutions, Inc. shapes the semiconductor industry’s evolution. ON Semiconductor, a diversified power and sensing solutions provider, contrasts with Skyworks’ focus on high-performance analog and mixed-signal products for wireless communications. This head-to-head highlights a clash between broad industrial electrification and specialized connectivity innovation. This analysis will assess which company offers a superior risk-adjusted outlook for a balanced, technology-focused portfolio.
Table of contents
Companies Overview
ON Semiconductor and Skyworks Solutions hold pivotal roles in the semiconductor industry, shaping critical technology segments.
ON Semiconductor Corporation: Powering Intelligent Electrification
ON Semiconductor stands as a leader in intelligent sensing and power solutions. It generates revenue through analog, mixed-signal, and power semiconductor products that enable electric vehicles, fast-charging systems, and sustainable energy applications. Its strategic focus in 2026 centers on expanding electrification technologies for automotive and industrial markets, leveraging its diversified power and sensing product lines.
Skyworks Solutions, Inc.: Connectivity and Wireless Innovation
Skyworks Solutions commands a strong position in proprietary semiconductor products for wireless communications. Its revenue stems from amplifiers, front-end modules, and integrated circuits serving aerospace, automotive, smartphone, and industrial sectors. The company’s 2026 strategy prioritizes advancing semiconductor technology for broad connectivity applications, emphasizing innovation in wireless analog and mixed-signal system-on-chip products.
Strategic Collision: Similarities & Divergences
Both companies excel in semiconductor innovation but diverge in focus—ON Semiconductor emphasizes power management and electrification, while Skyworks leads in wireless communications components. Their battle for market share targets overlapping sectors like automotive and industrial, yet their core technologies serve distinct needs. This contrast shapes their investment profiles: ON offers exposure to energy transition, Skyworks to connectivity growth.
Income Statement Comparison
This table dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | ON Semiconductor Corporation (ON) | Skyworks Solutions, Inc. (SWKS) |
|---|---|---|
| Revenue | 7.08B | 4.18B |
| Cost of Revenue | 3.87B | 2.46B |
| Operating Expenses | 1.45B | 933M |
| Gross Profit | 3.22B | 1.72B |
| EBITDA | 2.54B | 1.12B |
| EBIT | 1.90B | 667M |
| Interest Expense | 62M | 31M |
| Net Income | 1.57B | 596M |
| EPS | 3.68 | 3.72 |
| Fiscal Year | 2024 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company runs its operations with superior efficiency and profitability.
ON Semiconductor Corporation Analysis
ON Semiconductor’s revenue climbed 34.8% from 2020 to 2024, peaking at $7.1B in 2024 despite a recent 14% dip. Net income surged 571%, reaching $1.57B in 2024. The company sustains strong margins, with a favorable 45.4% gross and 22.2% net margin in 2024. However, recent declines signal caution on momentum.
Skyworks Solutions, Inc. Analysis
Skyworks’ revenue declined 20% over five years, with $4.1B reported in 2025, down 2.2% year-over-year. Net income tumbled 68% overall, falling to $477M in 2025. Margins remain positive but thinner than ON’s, with a 41.2% gross and 11.7% net margin in 2025. The company struggles to maintain growth and profits recently.
Margin Strength vs. Growth Resilience
ON Semiconductor leads with superior margin expansion and net income growth, despite recent revenue softness. Skyworks shows weaker top-line and bottom-line trends, with compressed margins. For investors prioritizing profitability and income growth, ON’s profile offers a more compelling fundamental foundation.
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) | Skyworks Solutions, Inc. (SWKS) |
|---|---|---|
| ROE | 17.9% | 8.3% |
| ROIC | 11.9% | 6.4% |
| P/E | 17.1 | 26.6 |
| P/B | 3.06 | 2.50 |
| Current Ratio | 5.06 | 5.54 |
| Quick Ratio | 3.38 | 4.24 |
| D/E | 0.38 | 0.19 |
| Debt-to-Assets | 23.9% | 14.5% |
| Interest Coverage | 28.4x | 25.6x |
| Asset Turnover | 0.50 | 0.50 |
| Fixed Asset Turnover | 1.61 | 2.84 |
| Payout ratio | 0% | 74% |
| Dividend yield | 0% | 2.8% |
| Fiscal Year | 2024 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios serve as a company’s DNA, exposing hidden risks and operational excellence that shape investor confidence and valuation.
ON Semiconductor Corporation
ON Semiconductor shows strong profitability with a ROE of 17.9% and a net margin of 22.2%, signaling efficient core operations. Its valuation metrics, including a P/E of 17.13 and P/B of 3.06, suggest a fairly valued but slightly stretched stock. The company lacks dividends, focusing on reinvestment through R&D to fuel growth.
Skyworks Solutions, Inc.
Skyworks posts a modest ROE of 8.3% and a net margin of 11.7%, reflecting moderate profitability. Its P/E of 24.95 indicates a somewhat expensive valuation compared to peers. Skyworks balances this with a 3.63% dividend yield, rewarding shareholders directly while maintaining healthy financial ratios and a solid current ratio of 2.33.
Valuation Stretch vs. Profitability Strength
ON Semiconductor offers stronger profitability and reinvestment potential but lacks dividend income. Skyworks combines moderate profits with a shareholder-friendly dividend and a higher valuation. Investors seeking growth may lean toward ON’s operational efficiency, while income-focused profiles might prefer Skyworks’ dividend and stability.
Which one offers the Superior Shareholder Reward?
I see Skyworks Solutions (SWKS) delivers a balanced reward through a 2.8% dividend yield and a 74% payout ratio, backed by strong free cash flow coverage near 91%. It pairs dividends with robust buybacks, sustaining shareholder returns. ON Semiconductor (ON) pays no dividends but invests heavily in growth, showing zero payout ratio and moderate free cash flow reinvestment. ON’s buyback program is less intense, potentially limiting immediate returns. For 2026, I favor SWKS’s sustainable distribution model combining dividends and buybacks, offering a more attractive total return profile amid market volatility.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of ON Semiconductor Corporation and Skyworks Solutions, Inc., exposing their core financial strengths and vulnerabilities:
Skyworks Solutions demonstrates a more balanced and favorable profile, excelling in discounted cash flow (4 vs. 3), return on equity (3 vs. 2), and return on assets (4 vs. 3). ON Semiconductor leans on a moderate asset use efficiency but struggles notably with valuation, scoring very unfavorably on price-to-earnings (1 vs. 2). Both companies share moderate debt-to-equity and price-to-book scores, but Skyworks’s broader strength across profitability and valuation metrics suggests a more resilient financial footing.
Bankruptcy Risk: Solvency Showdown
ON Semiconductor’s Altman Z-Score of 4.79 slightly outperforms Skyworks’ 4.34, placing both firms securely in the safe zone for bankruptcy risk, a crucial advantage in volatile market cycles:
Financial Health: Quality of Operations
Skyworks edges ahead with a Piotroski F-Score of 7, indicating strong financial health, compared to ON Semiconductor’s average score of 6, suggesting some internal metrics may warrant caution:
How are the two companies positioned?
This section dissects ON and SWKS’s operational DNA 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 Skyworks Solutions, Inc. diversify income streams and where their primary sector bets lie:
ON Semiconductor pivots on three core segments: Power Solutions Group ($3.35B), Analog Solutions Group ($2.61B), and Intelligent Sensing Group ($1.13B). This mix shows moderate diversification, anchored by Power Solutions. Skyworks Solutions lacks available data, so I cannot compare its revenue segmentation. ON’s reliance on power and analog solutions suggests a strategic focus on infrastructure dominance but exposes it to sector-specific risks without broader diversification.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of ON Semiconductor Corporation and Skyworks Solutions, Inc.:
ON Semiconductor Corporation Strengths
- Strong net margin at 22.21%
- Favorable ROE of 17.88%
- Favorable ROIC above WACC
- High current and quick ratios indicate liquidity
- Diversified revenue from multiple product groups
- Global presence across Asia, UK, and US markets
Skyworks Solutions, Inc. Strengths
- Favorable net margin at 11.67%
- Favorable current and quick ratios support liquidity
- Lower debt-to-assets ratio at 15.2%
- Dividend yield at 3.63% adds shareholder value
- Strong US revenue concentration over 3B
- Presence in Asia and EMEA supports geographic diversification
ON Semiconductor Corporation Weaknesses
- Unfavorable WACC exceeds ROIC, raising capital cost concerns
- High PB ratio at 3.06 signals possible overvaluation
- Zero dividend yield may deter income investors
- Current ratio excessively high at 5.06, possibly inefficient capital use
Skyworks Solutions, Inc. Weaknesses
- ROE at 8.29% is unfavorable compared to ON
- ROIC is neutral and close to WACC, limiting value creation
- Higher P/E ratio at 24.95 reflects premium valuation
- Geographic revenue less diversified, heavily US-dependent
ON Semiconductor shows robust profitability and liquidity but faces capital cost and valuation challenges. Skyworks offers steady dividends and lower leverage but has weaker returns and concentrated geographic exposure. Both companies maintain slightly favorable overall financial health, with distinct strategic trade-offs.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat alone shields long-term profits from relentless competitive erosion. Let’s examine how ON Semiconductor and Skyworks Solutions defend their turf:
ON Semiconductor Corporation: Emerging Power Solutions Moat
ON leverages cost advantage in power semiconductors, reflected in a strong 26.8% EBIT margin and rising ROIC. Expansion in EV and sustainable energy markets could deepen this moat in 2026.
Skyworks Solutions, Inc.: Intellectual Property Reliance
Skyworks depends on proprietary semiconductor designs but suffers declining ROIC and margins, signaling weakening advantage compared to ON. Innovation in wireless and automotive segments may offer limited moat restoration.
Margin Stability vs. Innovation Vulnerability
ON’s growing profitability and expanding market presence grant it a wider, more sustainable moat. Skyworks faces value destruction and a shrinking moat, leaving ON better positioned to defend market share through 2026.
Which stock offers better returns?
The past year shows contrasting price dynamics for ON Semiconductor and Skyworks Solutions, with ON recovering recently amid an overall bearish trend and Skyworks facing a steady decline.
Trend Comparison
ON Semiconductor’s stock fell 18.87% over the past 12 months, marking a bearish trend with accelerating decline and notable volatility (std dev 11.49). It hit a high of 77.87 and a low of 33.7.
Skyworks Solutions declined 45.19% in the same period, exhibiting a bearish trend with deceleration and higher volatility (std dev 16.52). Its price ranged between 116.18 and 52.78.
Comparing both, ON Semiconductor delivered the better market performance despite a negative trend, driven by recent strong gains, while Skyworks faced a deeper, decelerating loss.
Target Prices
Analysts present a mixed but cautiously optimistic target consensus for ON Semiconductor and Skyworks Solutions.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| ON Semiconductor Corporation | 51 | 64 | 59.25 |
| Skyworks Solutions, Inc. | 58 | 140 | 77.36 |
ON Semiconductor’s target consensus sits just below its current price of $60.72, indicating modest upside potential. Skyworks’ consensus of $77.36 suggests a significant premium over its $57.07 stock price, reflecting higher growth expectations but also wider analyst divergence.
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How do institutions grade them?
ON Semiconductor Corporation Grades
This table summarizes recent institutional grades for ON Semiconductor Corporation.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | Maintain | Neutral | 2026-01-21 |
| B. Riley Securities | Maintain | Neutral | 2026-01-20 |
| Stifel | Maintain | Hold | 2026-01-16 |
| Citigroup | Maintain | Neutral | 2026-01-15 |
| Wells Fargo | Maintain | Overweight | 2026-01-15 |
| Piper Sandler | Maintain | Overweight | 2026-01-07 |
| Truist Securities | Maintain | Hold | 2025-12-19 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-24 |
| Truist Securities | Maintain | Hold | 2025-11-04 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-04 |
Skyworks Solutions, Inc. Grades
Below are recent institutional grades for Skyworks Solutions, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Stifel | Maintain | Hold | 2026-02-04 |
| Keybanc | Maintain | Overweight | 2026-02-04 |
| JP Morgan | Maintain | Neutral | 2026-02-04 |
| Benchmark | Maintain | Hold | 2026-02-04 |
| Morgan Stanley | Maintain | Equal Weight | 2026-02-02 |
| Mizuho | Maintain | Neutral | 2026-01-26 |
| B. Riley Securities | Maintain | Neutral | 2026-01-26 |
| Susquehanna | Maintain | Neutral | 2026-01-22 |
| UBS | Maintain | Neutral | 2026-01-20 |
| Mizuho | Upgrade | Neutral | 2025-11-11 |
Which company has the best grades?
Both companies receive mostly neutral or hold ratings, with occasional overweight or equal weight grades. ON Semiconductor shows slightly more overweight ratings, suggesting modestly stronger institutional confidence. This could affect investor perception of relative strength.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing ON Semiconductor Corporation and Skyworks Solutions, Inc. in the 2026 market environment:
1. Market & Competition
ON Semiconductor Corporation
- Strong in automotive electrification but faces intense competition in power solutions.
Skyworks Solutions, Inc.
- Diverse portfolio in multiple end-markets but pressured by smartphone market cycles.
2. Capital Structure & Debt
ON Semiconductor Corporation
- Debt-to-equity ratio of 0.38 shows moderate leverage with strong interest coverage.
Skyworks Solutions, Inc.
- Lower debt-to-equity at 0.21, indicating more conservative financial risk management.
3. Stock Volatility
ON Semiconductor Corporation
- Beta of 1.54 indicates higher volatility than the market, raising risk in downturns.
Skyworks Solutions, Inc.
- Beta of 1.32 suggests somewhat lower volatility, providing better risk buffering.
4. Regulatory & Legal
ON Semiconductor Corporation
- Exposure to automotive and industrial regulations could pressure margins.
Skyworks Solutions, Inc.
- Broad international footprint exposes it to complex regulatory environments globally.
5. Supply Chain & Operations
ON Semiconductor Corporation
- Heavy reliance on specialized semiconductor manufacturing may cause bottlenecks.
Skyworks Solutions, Inc.
- Diverse manufacturing base reduces supply chain risk but still vulnerable to component shortages.
6. ESG & Climate Transition
ON Semiconductor Corporation
- Positioned well in sustainable energy markets; ESG initiatives support long-term growth.
Skyworks Solutions, Inc.
- ESG efforts improving but face challenges in reducing carbon footprint in manufacturing.
7. Geopolitical Exposure
ON Semiconductor Corporation
- US-based with limited direct exposure but global sales subject to trade tensions.
Skyworks Solutions, Inc.
- Significant operations in Asia increase risks from geopolitical conflicts and tariffs.
Which company shows a better risk-adjusted profile?
ON Semiconductor’s main risk is its higher stock volatility and somewhat stretched valuation metrics. Skyworks faces geopolitical and regulatory complexities but maintains a stronger balance sheet and lower leverage. Skyworks’ superior Piotroski score (7 vs. 6) and safer debt profile suggest a better risk-adjusted footing. However, ON’s dominant position in growing automotive electrification markets cannot be ignored. Recent data show ON’s current ratio is unusually high at 5.06, which may signal inefficient asset utilization, a red flag investors must watch closely.
Final Verdict: Which stock to choose?
ON Semiconductor’s superpower lies in its improving profitability and rising return on invested capital. It demonstrates growing operational efficiency despite recent revenue softness. Its high current ratio signals a liquidity buffer, yet that excess cash might suggest underutilized capital—a point of vigilance. ON fits an Aggressive Growth portfolio seeking a turnaround with expanding margins.
Skyworks Solutions commands a strategic moat through its consistent free cash flow and conservative debt profile. Its recurring revenue streams and strong cash conversion cycle offer a safety net compared to ON’s more volatile earnings. This makes Skyworks suitable for GARP investors who value stability paired with reasonable growth prospects.
If you prioritize growth fueled by improving profitability and operational momentum, ON Semiconductor is the compelling choice due to its rising ROIC and margin expansion. However, if you seek better stability and cash flow reliability with a more conservative financial structure, Skyworks offers superior downside protection and a durable competitive position. Both carry risks, so align your choice with your risk tolerance and investment horizon.
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 Skyworks Solutions, Inc. to enhance your investment decisions:
