Does ON Semiconductor Stock Lead the Pack?
ON Semiconductor’s stock has underperformed its peers over the past year. A closer look at the data reveals ON‘s negative revenue growth and a high PE ratio (46.65) compared to some rivals like AMAT (21.38) and TXN (33.12). Despite this, ON maintains solid operating (17.54%) and free cash flow margins (20.12%), positioning it well in key segments like automotive and industrial. However, the broader semiconductor market sees strong growth driven by AI, Logic, and Memory, where ON might face headwinds as “Discretes remain the laggard with a slight decline attributed to ongoing weakness in automotive demand”.
- ON’s 17.5% operating margin is strong, yet trails TXN’s 34.8%, reflecting TXN’s efficient analog/embedded processing business model.
- ON’s -17.9% revenue growth lags peers due to auto/industrial inventory correction, but outpaces MCHP’s deeper sector weakness.
- ON’s -18.1% stock drop and 46.6 PE reflect EV market slowdown and margin pressure, lagging AI-driven peers like AMAT.
Here’s how ON Semiconductor stacks up across size, valuation, and profitability versus key peers.
| ON | AMAT | TXN | ADI | MCHP | DIOD | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 23.7 | 214.4 | 166.0 | 137.6 | 34.3 | 2.4 |
| Revenue ($ Bil) | 6.4 | 28.6 | 17.3 | 10.4 | 4.2 | 1.4 |
| PE Ratio | 46.6 | 21.4 | 33.1 | 60.1 | -187.4 | 38.5 |
| LTM Revenue Growth | -17.9% | 6.6% | 9.9% | 7.1% | -23.4% | 10.4% |
| LTM Operating Margin | 17.5% | 30.1% | 34.8% | 25.3% | 3.7% | 2.3% |
| LTM FCF Margin | 20.1% | 20.4% | 12.0% | 35.4% | 17.9% | 13.1% |
| 12M Market Return | -18.1% | 48.1% | -4.4% | 27.8% | 0.3% | -19.4% |
For more details on ON Semiconductor, read Buy or Sell ON Stock. Below we compare ON’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| ON | -17.9% | – | -14.2% | -0.9% | 23.5% |
| AMAT | 6.6% | – | 2.5% | 2.8% | 11.8% |
| TXN | 9.9% | – | -10.7% | -12.5% | 9.2% |
| ADI | 7.1% | – | -23.4% | 2.4% | 64.2% |
| MCHP | -23.4% | -42.3% | -9.5% | 23.7% | |
| DIOD | 10.4% | – | -21.1% | -16.9% | 10.8% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| ON | 17.5% | – | 26.9% | 31.7% | 33.2% |
| AMAT | 30.1% | – | 28.9% | 28.9% | 30.2% |
| TXN | 34.8% | – | 34.1% | 41.8% | 51.9% |
| ADI | 25.3% | – | 22.0% | 32.4% | 29.6% |
| MCHP | 3.7% | 8.5% | 33.5% | 36.9% | |
| DIOD | 2.3% | – | 3.9% | 15.1% | 20.2% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| ON | 46.6 | – | 17.1 | 16.5 | 14.2 |
| AMAT | 21.4 | – | 18.7 | 19.9 | 13.0 |
| TXN | 33.1 | – | 35.6 | 23.8 | 17.3 |
| ADI | 60.1 | – | 64.5 | 30.1 | 31.0 |
| MCHP | -187.4 | -61628.3 | 25.6 | 17.3 | |
| DIOD | 38.5 | – | 64.7 | 16.2 | 10.4 |
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