NXPI vs ON vs TXN vs STM

For growth investors, Texas Instruments Incorporated (TXN) is the stronger pick with 13.

0% revenue growth year-over-year, versus -15. 3% for ON Semiconductor Corporation (ON). NXP Semiconductors N. V. (NXPI) offers the better valuation at 37. 1x trailing P/E (20. 1x forward), making it the more compelling value choice. Analysts rate NXP Semiconductors N. V. (NXPI) a "Buy" — based on 46 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, NXP Semiconductors N.

V. (NXPI) is the cheapest at 37. 1x versus ON Semiconductor Corporation at 355. 9x. On forward P/E, NXP Semiconductors N. V. is actually cheaper at 20. 1x.

Over the past 5 years, ON Semiconductor Corporation (ON) delivered a total return of +178.

8%, compared to +65. 6% for NXP Semiconductors N. V. (NXPI). Over 10 years, the gap is even starker: STM returned +1042% versus NXPI's +272. 5%. 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), Texas Instruments Incorporated (TXN) is the lower-risk stock at 1.

09β versus STMicroelectronics N. V. 's 2. 07β — meaning STM is approximately 89% more volatile than TXN relative to the S&P 500. On balance sheet safety, STMicroelectronics N. V. (STM) carries a lower debt/equity ratio of 12% versus 117% for NXP Semiconductors N. V. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Texas Instruments Incorporated (TXN) is pulling ahead at 13.

0% versus -15. 3% for ON Semiconductor Corporation (ON). On earnings-per-share growth, the picture is similar: Texas Instruments Incorporated grew EPS 4. 8% year-over-year, compared to -92. 0% for ON Semiconductor Corporation. Over a 3-year CAGR, NXPI leads at -2. 4% 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.

Texas Instruments Incorporated (TXN) is the more profitable company, earning 28.

3% net margin versus 1. 4% for STMicroelectronics N. V. — meaning it keeps 28. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TXN leads at 34. 1% versus 2. 7% for STM. At the gross margin level — before operating expenses — TXN leads at 57. 0%, 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, NXP Semiconductors N.

V. (NXPI) trades at 20. 1x forward P/E versus 49. 8x for STMicroelectronics N. V. — 29. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for STM: -2. 8% to $57. 50.

In this comparison, TXN (1.

9% yield), NXPI (1. 4% yield), STM (0. 6% yield) pay a dividend. ON does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Texas Instruments Incorporated (TXN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

09), 1. 9% yield, +476. 4% 10Y return). ON Semiconductor Corporation (ON) carries a higher beta of 1. 91 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TXN: +476. 4%, ON: +1033%), 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.

NXPI, TXN, STM pay 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.