GFS vs ON

For growth investors, GLOBALFOUNDRIES Inc.

(GFS) is the stronger pick with 0. 6% revenue growth year-over-year, versus -15. 3% for ON Semiconductor Corporation (ON). GLOBALFOUNDRIES Inc. (GFS) offers the better valuation at 45. 5x trailing P/E (39. 2x forward), making it the more compelling value choice. Analysts rate GLOBALFOUNDRIES Inc. (GFS) a "Buy" — based on 19 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, GLOBALFOUNDRIES Inc.

(GFS) is the cheapest at 45. 5x 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 +55. 8% for GLOBALFOUNDRIES Inc. (GFS). Over 10 years, the gap is even starker: ON returned +1024% versus GFS's +55. 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), GLOBALFOUNDRIES Inc.

(GFS) is the lower-risk stock at 1. 85β versus ON Semiconductor Corporation's 1. 95β — meaning ON is approximately 6% more volatile than GFS relative to the S&P 500. On balance sheet safety, GLOBALFOUNDRIES Inc. (GFS) carries a lower debt/equity ratio of 14% versus 45% for ON Semiconductor Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), GLOBALFOUNDRIES Inc.

(GFS) is pulling ahead at 0. 6% versus -15. 3% for ON Semiconductor Corporation (ON). On earnings-per-share growth, the picture is similar: GLOBALFOUNDRIES Inc. grew EPS 431. 3% year-over-year, compared to -92. 0% for ON Semiconductor Corporation. Over a 3-year CAGR, GFS leads at -5. 7% 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.

GLOBALFOUNDRIES Inc.

(GFS) is the more profitable company, earning 13. 0% net margin versus 2. 0% for ON Semiconductor Corporation — meaning it keeps 13. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ON leads at 12. 5% versus 11. 7% for GFS. 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 36.

1x forward P/E versus 39. 2x for GLOBALFOUNDRIES Inc. — 3. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GFS: -29. 3% to $51. 14.

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 (+1024% 10Y return).

GLOBALFOUNDRIES Inc. (GFS) carries a higher beta of 1. 85 — 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: +1024%, GFS: +55. 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.