NXPI vs ON vs TXN vs STM vs ADI

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). 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. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: NXP Semiconductors N. V. wins at 0. 18x versus Analog Devices, Inc. 's 5. 36x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Analog Devices, Inc.

(ADI) delivered a total return of +187. 7%, 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), 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, 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 — 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, NXP Semiconductors N. V. (NXPI) is the more undervalued stock at a PEG of 0. 18x versus Analog Devices, Inc. 's 5. 36x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. 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), ADI (0. 9% 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.

In terms of investment character: NXPI is a mid-cap quality compounder stock; ON is a mid-cap quality compounder stock; TXN is a large-cap quality compounder stock; STM is a mid-cap quality compounder stock; ADI is a large-cap high-growth stock. NXPI, TXN, STM, ADI 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.