ON Semiconductor Corporation (ON) vs Tower Semiconductor Ltd. (TSEM)

ON Semiconductor Corporation and Tower Semiconductor Ltd. are both Semiconductors companies. ON Semiconductor Corporation is the larger, with a market value of $29.0B against $25.5B — 1.1× the size. ON Semiconductor Corporation trades at the lower P/E: 48.9× against 89.7×. Tower Semiconductor Ltd. grew revenue faster over the last twelve months: 14.9% against −3.14%. Tower Semiconductor Ltd. has the higher net margin (16.9% vs 10.2%) and the higher return on invested capital (9.97% vs 5.33%). Across the 22 metrics below, Tower Semiconductor Ltd. leads on 12 and ON Semiconductor Corporation on 10.

Valuation

Metric ON TSEM Semiconductors median
P/E 48.86 89.68 49.41
P/S 4.86 15.22 8.58
P/B 4.16 8.47 5.49
Price to free cash flow 19.64 81.90 47.02
EV/EBITDA 20.90 41.34 30.78
EV/Sales 4.96 14.44 8.79
Earnings yield 2.05% 1.12% 0.62%
Free cash flow yield 5.09% 1.22% 0.59%

Profitability

Metric ON TSEM Semiconductors median
Gross margin 37.72% 26.87% 52.25%
Operating margin 10.81% 16.16% 4.85%
Net margin 10.17% 16.94% 4.77%
Free cash flow margin 24.76% 18.04% 8.65%
Return on equity 8.29% 10.53% 3.11%
Return on assets 4.74% 8.30% 1.91%
Return on invested capital 5.33% 9.97% 2.46%

Growth

Metric ON TSEM Semiconductors median
Revenue growth (TTM) (3.14%) 14.90% 16.66%
EPS growth (last fiscal year) (92.01%) 4.86% —
Revenue growth, 5-year CAGR 2.67% 4.35% 5.60%
Net income growth, 5-year CAGR (12.37%) 21.78% 0.00%

Health

Metric ON TSEM Semiconductors median
Debt to equity 0.62 0.05 0.05
Current ratio 3.46 4.91 3.35
Net debt to EBITDA 0.58 (1.99) 0.58

Dividend

Metric ON TSEM Semiconductors median
Dividend yield — — 1.93%
Payout ratio 0.00 0.00 0.00

Size

Metric ON TSEM Semiconductors median
Market cap 29.03b 25.45b 5.67b

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