TSEM vs ON

For growth investors, Tower Semiconductor Ltd.

(TSEM) is the stronger pick with 9. 1% revenue growth year-over-year, versus -15. 3% for ON Semiconductor Corporation (ON). Tower Semiconductor Ltd. (TSEM) offers the better valuation at 111. 8x trailing P/E (72. 5x forward), making it the more compelling value choice. Analysts rate Tower Semiconductor Ltd. (TSEM) a "Buy" — based on 14 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, Tower Semiconductor Ltd.

(TSEM) is the cheapest at 111. 8x 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, Tower Semiconductor Ltd.

(TSEM) delivered a total return of +680. 4%, compared to +181. 4% for ON Semiconductor Corporation (ON). Over 10 years, the gap is even starker: TSEM returned +1744% versus ON's +1024%. 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 Tower Semiconductor Ltd. 's 2. 41β — meaning TSEM is approximately 24% more volatile than ON relative to the S&P 500. On balance sheet safety, Tower Semiconductor Ltd. (TSEM) carries a lower debt/equity ratio of 6% versus 45% for ON Semiconductor Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Tower Semiconductor Ltd.

(TSEM) is pulling ahead at 9. 1% versus -15. 3% for ON Semiconductor Corporation (ON). On earnings-per-share growth, the picture is similar: Tower Semiconductor Ltd. grew EPS 4. 9% year-over-year, compared to -92. 0% for ON Semiconductor Corporation. Over a 3-year CAGR, TSEM leads at -2. 3% 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.

Tower Semiconductor Ltd.

(TSEM) is the more profitable company, earning 14. 1% net margin versus 2. 0% for ON Semiconductor Corporation — meaning it keeps 14. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ON leads at 12. 5% versus 12. 4% for TSEM. 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 72. 5x for Tower Semiconductor Ltd. — 36. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TSEM: -29. 0% to $154. 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, Tower Semiconductor Ltd.

(TSEM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1744% 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 (TSEM: +1744%, 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.

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.