ADI vs ON

For growth investors, Analog Devices, Inc.

(ADI) is the stronger pick with 16. 9% revenue growth year-over-year, versus -15. 3% for ON Semiconductor Corporation (ON). Analog Devices, Inc. (ADI) offers the better valuation at 91. 2x trailing P/E (36. 4x forward), making it the more compelling value choice. Analysts rate Analog Devices, Inc. (ADI) a "Buy" — based on 54 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, Analog Devices, Inc.

(ADI) is the cheapest at 91. 2x versus ON Semiconductor Corporation at 364. 7x. On forward P/E, ON Semiconductor Corporation is actually cheaper at 36. 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 +181.

4%, compared to +178. 6% for Analog Devices, Inc. (ADI). Over 10 years, the gap is even starker: ON returned +1024% versus ADI's +699. 1%. 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), Analog Devices, Inc.

(ADI) is the lower-risk stock at 1. 44β versus ON Semiconductor Corporation's 1. 95β — meaning ON is approximately 35% more volatile than ADI relative to the S&P 500. On balance sheet safety, Analog Devices, Inc. (ADI) carries a lower debt/equity ratio of 26% versus 45% for ON Semiconductor Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Analog Devices, Inc.

(ADI) is pulling ahead at 16. 9% versus -15. 3% for ON Semiconductor Corporation (ON). On earnings-per-share growth, the picture is similar: Analog Devices, Inc. grew EPS 39. 0% year-over-year, compared to -92. 0% for ON Semiconductor Corporation. Over a 3-year CAGR, ADI leads at -2. 8% 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.

Analog Devices, Inc.

(ADI) is the more profitable company, earning 20. 6% net margin versus 2. 0% for ON Semiconductor Corporation — meaning it keeps 20. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ADI leads at 26. 6% versus 12. 5% for ON. At the gross margin level — before operating expenses — ADI leads at 61. 5%, 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 36.

1x forward P/E versus 36. 4x for Analog Devices, Inc. — 0. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ADI: -9. 9% to $374. 42.

In this comparison, ADI (0.

9% yield) pays a dividend. ON does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Analog Devices, Inc.

(ADI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0. 9% yield, +699. 1% 10Y return). ON Semiconductor Corporation (ON) carries a higher beta of 1. 95 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ADI: +699. 1%, ON: +1024%), 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.

In terms of investment character: ADI is a large-cap high-growth stock; ON is a mid-cap quality compounder stock. ADI pays a dividend while ON does not, making them suitable for different income and tax situations. 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.