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ON
ON Semiconductor Corporation · Technology - Power Semiconductors
$121.62
+14.71% this month
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STM
STMicroelectronics N.V. · Technology - Diversified Semiconductors
$78.39
+28.03% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
ON
3
STM
1
Comparison scoreboard
ON LEADS 3/5AI Score
ON ✓61.4
STM 60.2
1Y Return
ON +129.73%
STM ✓+173.53%
Fwd P/E
ON ✓28.18
STM 31.89
Target Up.
ON ✓-11.90%
STM -17.90%
Op. Margin
ON 18.23%
STM N/A
Metrics last refreshed: 6/22/2026
Quick take
ON vs STM Stock Comparison: AI Score, Valuation, Performance and Upside
ON Semiconductor and STMicroelectronics are both power semiconductor leaders competing in SiC — ON has focused its transformation on automotive and industrial SiC with vertical integration and long-term supply agreements, while STM has a broader portfolio including STM32 microcontrollers, MEMS sensors, analog chips, and SiC power devices. ON is more concentrated on SiC/automotive; STM is more diversified with different risk/reward characteristics.
ON vs STM is focused SiC and automotive power semiconductor bet (ON's strategic transformation around EV power electronics and intelligent power) versus diversified semiconductor platform (STM's STM32 microcontrollers, SiC, MEMS, and analog serving multiple end markets) — concentration versus diversification in the power semiconductor space.
Live analysis · updated 6/22/2026
ON holds the edge across 3 of 5 key metrics in this comparison. STM has delivered stronger 1-year price return (+173.53% vs +129.73%), though ON trades at the lower forward P/E (28.18x vs 31.89x). Analyst consensus implies meaningfully more upside for ON (-11.90%) than for STM (-17.90%).
Normalized 1Y performance
ON
STM
Recent returns
ON
STM
Analyst price targets & sentiment
ON · 29 analysts
Price target range
analyst low$33.00
analyst mean$107.15
current price$121.62
-11.9% upside to analyst mean
STM · 13 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.0/5.0)
Price target range
analyst low$32.80
analyst high$100.00
analyst mean$64.36
current price$78.39
-17.9% upside to analyst mean
Who should consider this stock?
ON may suit investors who:
- →Want concentrated exposure to the EV and industrial electrification SiC opportunity — ON's focused transformation around automotive power semiconductors makes it a high-conviction bet on EV adoption
- →Value ON's long-term supply agreements with automotive OEMs as revenue visibility that reduces the sales cycle uncertainty typical in semiconductor companies
- →Accept higher concentration risk in SiC and automotive for the potential that ON's vertical integration and focused strategy delivers superior SiC economics versus more diversified competitors
STM may suit investors who:
- →Want diversified semiconductor exposure spanning SiC power devices, STM32 microcontrollers (one of the world's most popular embedded processors), MEMS sensors, and automotive ICs in one company
- →Value STMicroelectronics' broad developer ecosystem around STM32 as a durable competitive advantage in embedded microcontrollers that complements its power semiconductor and automotive positioning
- →Prefer geographic diversification with a European semiconductor company versus exclusively U.S.-listed semiconductor investments
Performance & AI score
| Metric | ON | STM |
|---|---|---|
| AI score | 61.4 | 60.2 |
| AI rank | #138 | #158 |
| Latest close | $121.62 | $78.39 |
| 1M return | +14.71% | +28.03% |
| 6M return | +128.05% | +207.68% |
| 1Y return | +129.73% | +173.53% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | ON | STM |
|---|---|---|
| 1Y ago | $23.27K (+132.7%) started 2025-06-18 | $27.7K (+177.0%) started 2025-06-18 |
| 5Y ago | $33.33K (+233.3%) started 2021-06-21 | $23.75K (+137.5%) started 2021-06-18 |
| 10Y ago | $124.36K (+1143.6%) started 2016-06-20 | $167.21K (+1572.1%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | ON | STM |
|---|---|---|
| Market cap | $47.29B | $69.67B |
| Trailing P/E | 89.43 | 489.94 |
| Forward P/E | 28.18 | 31.89 |
| Price/Sales | 3.15 | 5.63 |
| EV/Revenue | 8.00 | 5.52 |
| Analyst target | $107.15 | $64.36 |
| Target upside | -11.90% | -17.90% |
Growth, profitability & risk
| Metric | ON | STM |
|---|---|---|
| Revenue growth | 4.70% | 23.00% |
| Earnings growth | -48.70% | -33.30% |
| EPS growth | -48.70% | -33.30% |
| FCF margin | +21.15% | -2.91% |
| Operating margin | 18.23% | N/A |
| Profit margin | 9.46% | 1.19% |
| ROIC proxy | 7.49% | 0.91% |
| Return on equity | 7.49% | 0.91% |
| Dividend yield | N/A | 0.46% |
| Beta | 1.98 | 1.56 |
| Debt/equity | 44.34 | 15.32 |
| Current ratio | 4.87 | 3.31 |
| Quick ratio | 2.80 | 2.22 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
ON max drawdown28.10%
STM max drawdown36.35%
ON max wkly drop19.08%
STM max wkly drop20.56%
5Y risk snapshot
ON max drawdown70.44%
STM max drawdown66.66%
ON max wkly drop26.38%
STM max wkly drop20.56%
10Y risk snapshot
ON max drawdown70.44%
STM max drawdown66.66%
ON max wkly drop43.93%
STM max wkly drop30.46%
Performance metrics by period
| Period | Metric | ON | STM |
|---|---|---|---|
| 1Y | Growth | +132.72% | +173.53% |
| CAGR | +133.00% | +173.71% | |
| Sharpe ratio | 1.73 | 2.05 | |
| Max drawdown | 28.10% | 36.35% | |
| Max daily drop | 15.58% | 15.86% | |
| Max wkly drop | 19.08% | 20.56% | |
| 5Y | Growth | +233.30% | +127.50% |
| CAGR | +27.27% | +17.87% | |
| Sharpe ratio | 0.64 | 0.49 | |
| Max drawdown | 70.44% | 66.66% | |
| Max daily drop | 21.77% | 15.86% | |
| Max wkly drop | 26.38% | 20.56% | |
| 10Y | Growth | +1143.56% | +1400.24% |
| CAGR | +28.69% | +31.13% | |
| Sharpe ratio | 0.66 | 0.73 | |
| Max drawdown | 70.44% | 66.66% | |
| Max daily drop | 26.84% | 18.95% | |
| Max wkly drop | 43.93% | 30.46% |
Business comparison
| Category | ON | STM |
|---|---|---|
| Company | ON Semiconductor Corporation | STMicroelectronics N.V. |
| Sector | Technology | Technology - Diversified Semiconductors |
| Industry | Semiconductors | N/A |
| Core business | ON Semiconductor (onsemi) has transformed from a diversified analog semiconductor company into a focused intelligent power and sensing solutions company — concentrating on silicon carbide (SiC) power devices, MOSFET power transistors, intelligent power modules, and image sensors for automotive and industrial electrification applications. | STMicroelectronics is a European-headquartered (France/Italy) semiconductor company with a broad portfolio including SiC power devices, STM32 microcontrollers (one of the world's most popular embedded processors), analog and mixed-signal chips, automotive ICs, wireless connectivity chips, and MEMS sensors — serving automotive, industrial, consumer, and communications markets. |
| Investor focus | Investors track ON Semiconductor's SiC revenue growth, long-term supply agreements (LTSAs) with automotive customers for multi-year SiC commitments, automotive content per electric vehicle, fab utilization (ON invested heavily in SiC manufacturing capacity), and margin trajectory as SiC mix increases. | Investors track STM's SiC revenue trajectory, STM32 microcontroller market position, automotive semiconductor content growth, overall margin profile (ST has historically had lower margins than pure-play power companies), and the impact of SiC capacity investments on near-term profitability. |
ON strengths
- →Automotive SiC leadership with long-term supply agreements — ON Semiconductor has secured multi-year LTSAs with major EV manufacturers (including relationships with Tesla, BMW, and others) providing revenue visibility in SiC power devices
- →Vertical integration in SiC — ON produces SiC boules (raw crystal), substrates, and finished SiC power devices, giving more control over supply and potentially lower costs than competitors who buy SiC substrates externally
- →Focused strategic transformation — by exiting non-core businesses to concentrate on automotive/industrial electrification, ON has simplified its portfolio and improved margins versus its former diversified analog structure
STM strengths
- →STM32 microcontroller dominance — STMicroelectronics' STM32 family is one of the most widely used 32-bit microcontrollers globally, creating a massive developer ecosystem, software library, and IoT application footprint that drives broad market design-wins
- →SiC power device scale — STM is among the top 3 SiC suppliers globally and has been the primary SiC supplier for Tesla's inverters — significant SiC revenue gives ST real-world production scale experience
- →End market diversification — unlike more concentrated competitors, STM's automotive, industrial, consumer, and IoT end market mix provides partial counter-cyclicality across different demand cycles
Risks to watch — ON
- →SiC market competition is intensifying — ROHM, Infineon, STMicroelectronics, and Wolfspeed are all investing in SiC capacity, creating potential oversupply risk and pricing pressure as the market matures
- →EV adoption pace uncertainty — ON's SiC revenue depends on electric vehicle adoption rates; if EV growth slows from high expectations, SiC demand could disappoint
- →Heavy SiC manufacturing investment — ON has committed billions to SiC fab expansion; if SiC demand falls short of projections, this capacity overhang could pressure margins and returns
Risks to watch — STM
- →Margin pressure — STM's diversified model has historically produced lower operating margins than focused power semiconductor or analog companies; SiC investments create near-term margin headwinds
- →STM32 faces competition from Nordic Semiconductor, Renesas, and increasingly ARM-based microcontrollers from other vendors in the IoT and embedded processing market
- →European headquartered with significant manufacturing in Europe and Asia — currency exposure (EUR/USD) and European geopolitical considerations affect competitive position
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