Cerebras Systems Inc. (CBRS) vs ON Semiconductor Corporation (ON)

Cerebras Systems Inc. and ON Semiconductor Corporation are both Semiconductors companies. ON Semiconductor Corporation is the larger, with a market value of $28.7B against $22.6B — 1.3× the size. Cerebras Systems Inc. has negative trailing earnings, so its P/E is not meaningful; ON Semiconductor Corporation trades at 41.8×. ON Semiconductor Corporation has the higher net margin (10.8% vs −63.9%) and the higher return on invested capital (6.36% vs −21.1%). Across the 14 metrics below, ON Semiconductor Corporation leads on 11 and Cerebras Systems Inc. on 3.

Valuation

Metric CBRS ON Semiconductors median
P/E n/m 41.76 44.73
P/S 26.39 4.49 6.85
P/B 1.66 3.77 5.06
Price to free cash flow n/m 17.22 57.33
EV/EBITDA n/m 18.21 22.12
EV/Sales 13.47 4.50 6.85
Earnings yield (1.37%) 2.39% 0.84%
Free cash flow yield (5.95%) 5.81% 0.81%

Profitability

Metric CBRS ON Semiconductors median
Gross margin 32.17% 38.68% 52.12%
Operating margin (100.27%) 12.30% 7.34%
Net margin (63.86%) 10.82% 3.87%
Free cash flow margin (157.07%) 26.05% 4.86%
Return on equity 0.00% 8.89% 1.15%
Return on assets (6.33%) 5.12% 2.03%
Return on invested capital (21.13%) 6.36% 2.66%

Growth

Metric CBRS ON Semiconductors median
Revenue growth (TTM) — 2.93% 17.60%
EPS growth (last fiscal year) — (92.01%) 27.88%
Revenue growth, 5-year CAGR — 2.67% 5.14%
Net income growth, 5-year CAGR — (12.37%) 0.00%

Health

Metric CBRS ON Semiconductors median
Debt to equity 0.13 0.59 0.13
Current ratio 5.82 3.55 3.35
Net debt to EBITDA — 0.58 0.58

Dividend

Metric CBRS ON Semiconductors median
Dividend yield — — 1.37%
Payout ratio — — 0.40

Size

Metric CBRS ON Semiconductors median
Market cap 22.63b 28.66b 5.52b

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