Head-To-Head Analysis: onsemi (NASDAQ:ON) vs. Advanced Micro Devices (NASDAQ:AMD)

onsemi (NASDAQ:ON) and Advanced Micro Devices (NASDAQ:AMD) are both large-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Volatility and Risk

onsemi has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500. Comparatively, Advanced Micro Devices has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500.

Earnings & Valuation

This table compares onsemi and Advanced Micro Devices”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
onsemi	$6.00 billion	4.65	$121.00 million	$1.56	45.94
Advanced Micro Devices	$34.64 billion	23.79	$4.33 billion	$3.89	129.77

Advanced Micro Devices has higher revenue and earnings than onsemi. onsemi is trading at a lower price-to-earnings ratio than Advanced Micro Devices, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares onsemi and Advanced Micro Devices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
onsemi	10.17%	14.06%	8.31%
Advanced Micro Devices	15.58%	12.30%	9.89%

Analyst Ratings

This is a breakdown of current ratings for onsemi and Advanced Micro Devices, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
onsemi	0	16	14	1	2.52
Advanced Micro Devices	1	8	31	3	2.84

onsemi currently has a consensus price target of $92.68, suggesting a potential upside of 29.31%. Advanced Micro Devices has a consensus price target of $607.57, suggesting a potential upside of 20.36%. Given onsemi’s higher probable upside, equities analysts clearly believe onsemi is more favorable than Advanced Micro Devices.

Institutional & Insider Ownership

97.7% of onsemi shares are held by institutional investors. Comparatively, 71.3% of Advanced Micro Devices shares are held by institutional investors. 0.3% of onsemi shares are held by company insiders. Comparatively, 0.5% of Advanced Micro Devices shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Advanced Micro Devices beats onsemi on 12 of the 15 factors compared between the two stocks.

About onsemi

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions. The Advanced Solutions Group segment is involved in the designing and developing of analog, mixed-signal, advanced logic, ASSPs and ASICs, Wi-Fi and power solutions for a broad base of end-users in the automotive, consumer, computing, industrial, communications, medical and aerospace/defense markets. The Intelligent Sensing Group segment is focused on the designing and developing of CMOS and CCD image sensors, as well as proximity sensors, image signal processors, single photon detectors, inclu

About Advanced Micro Devices

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, and AMD PRO A-Series brand names; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; and professional graphics under the AMD Radeon Pro graphics brand name. In addition, the company offers data center graphics under the Radeon Instinct and Radeon PRO V-series brands, as well as servers under the AMD Instinct accelerators brand; server microprocessors under the AMD EPYC brands; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo brand. It serves original equipment and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force, and sales representatives. Advanced Micro Devices, Inc. was incorporated in 1969 and is headquartered in Santa Clara, California.