ON vs DIOD

For growth investors, Diodes Incorporated (DIOD) is the stronger pick with 13.

0% revenue growth year-over-year, versus -15. 3% for ON Semiconductor Corporation (ON). Diodes Incorporated (DIOD) offers the better valuation at 78. 7x trailing P/E (48. 4x forward), making it the more compelling value choice. Analysts rate ON Semiconductor Corporation (ON) a "Buy" — based on 45 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Diodes Incorporated (DIOD) is the cheapest at 78.

7x versus ON Semiconductor Corporation at 354. 1x. On forward P/E, ON Semiconductor Corporation is actually cheaper at 35. 1x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, ON Semiconductor Corporation (ON) delivered a total return of +173.

5%, compared to +55. 0% for Diodes Incorporated (DIOD). Over 10 years, the gap is even starker: ON returned +1005% versus DIOD's +528. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), ON Semiconductor Corporation (ON) is the lower-risk stock at 1.

95β versus Diodes Incorporated's 2. 11β — meaning DIOD is approximately 8% more volatile than ON relative to the S&P 500. On balance sheet safety, Diodes Incorporated (DIOD) carries a lower debt/equity ratio of 5% versus 45% for ON Semiconductor Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Diodes Incorporated (DIOD) is pulling ahead at 13.

0% versus -15. 3% for ON Semiconductor Corporation (ON). On earnings-per-share growth, the picture is similar: Diodes Incorporated grew EPS 50. 5% year-over-year, compared to -92. 0% for ON Semiconductor Corporation. Over a 3-year CAGR, DIOD leads at -9. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Diodes Incorporated (DIOD) is the more profitable company, earning 4.

5% net margin versus 2. 0% for ON Semiconductor Corporation — meaning it keeps 4. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ON leads at 12. 5% versus 2. 4% for DIOD. At the gross margin level — before operating expenses — ON leads at 32. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, ON Semiconductor Corporation (ON) trades at 35.

1x forward P/E versus 48. 4x for Diodes Incorporated — 13. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DIOD: -34. 2% to $74. 00.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, ON Semiconductor Corporation (ON) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1005% 10Y return).

Diodes Incorporated (DIOD) carries a higher beta of 2. 11 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ON: +1005%, DIOD: +528. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.