ON Semiconductor Corporation (ON) vs Skyworks Solutions, Inc. (SWKS)

ON Semiconductor Corporation and Skyworks Solutions, Inc. are both Semiconductors companies. ON Semiconductor Corporation is the larger, with a market value of $27.9B against $20.6B — 1.4× the size. Skyworks Solutions, Inc. trades at the lower P/E: 44.9× against 45.4×. Skyworks Solutions, Inc. grew revenue faster over the last twelve months: 0.06% against −3.14%. ON Semiconductor Corporation has the higher net margin (10.2% vs 7.23%) and the higher return on invested capital (5.33% vs 3.51%). Across the 22 metrics below, Skyworks Solutions, Inc. leads on 13 and ON Semiconductor Corporation on 9.

Valuation

Metric ON SWKS Semiconductors median
P/E 45.36 44.91 45.42
P/S 4.51 3.28 7.49
P/B 3.86 2.30 4.92
Price to free cash flow 18.23 32.24 50.62
EV/EBITDA 19.43 17.35 28.73
EV/Sales 4.61 3.33 6.86
Earnings yield 2.20% 2.23% 0.77%
Free cash flow yield 5.49% 3.10% 0.73%

Profitability

Metric ON SWKS Semiconductors median
Gross margin 37.72% 40.73% 52.21%
Operating margin 10.81% 7.61% 4.76%
Net margin 10.17% 7.23% 4.26%
Free cash flow margin 24.76% 10.18% 8.47%
Return on equity 8.29% 5.09% 3.62%
Return on assets 4.74% 3.83% 1.78%
Return on invested capital 5.33% 3.51% 2.23%

Growth

Metric ON SWKS Semiconductors median
Revenue growth (TTM) (3.14%) 0.06% 14.90%
EPS growth (last fiscal year) (92.01%) (16.53%) 26.67%
Revenue growth, 5-year CAGR 2.67% 4.02% 5.60%
Net income growth, 5-year CAGR (12.37%) (10.15%) 0.00%

Health

Metric ON SWKS Semiconductors median
Debt to equity 0.62 0.09 0.05
Current ratio 3.46 3.10 3.22
Net debt to EBITDA 0.58 (0.39) 0.53

Dividend

Metric ON SWKS Semiconductors median
Dividend yield — 2.43% 1.23%
Payout ratio — 1.10 0.40

Size

Metric ON SWKS Semiconductors median
Market cap 27.90b 20.60b 5.93b

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