Analyzing Qorvo (QRVO) and ON Semiconductor (ON)

Qorvo (NASDAQ: QRVO) and ON Semiconductor (NASDAQ:ON) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

97.5% of Qorvo shares are held by institutional investors. Comparatively, 90.4% of ON Semiconductor shares are held by institutional investors. 0.9% of Qorvo shares are held by insiders. Comparatively, 1.6% of ON Semiconductor shares are held by 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.

Earnings and Valuation

This table compares Qorvo and ON Semiconductor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qorvo $2.97 billion 3.42 -$40.28 million $4.78 16.84
ON Semiconductor $5.54 billion 1.72 $810.70 million $1.46 15.26

ON Semiconductor has higher revenue and earnings than Qorvo. ON Semiconductor is trading at a lower price-to-earnings ratio than Qorvo, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Qorvo has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, ON Semiconductor has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Qorvo and ON Semiconductor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qorvo 2 11 10 0 2.35
ON Semiconductor 1 7 9 0 2.47

Qorvo presently has a consensus price target of $83.32, suggesting a potential upside of 3.52%. ON Semiconductor has a consensus price target of $25.00, suggesting a potential upside of 12.21%. Given ON Semiconductor’s stronger consensus rating and higher probable upside, analysts plainly believe ON Semiconductor is more favorable than Qorvo.

Profitability

This table compares Qorvo and ON Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Qorvo -1.35% 12.50% 9.39%
ON Semiconductor 15.90% 23.00% 8.26%

Summary

ON Semiconductor beats Qorvo on 8 of the 14 factors compared between the two stocks.

About Qorvo

Qorvo, Inc. provides radio frequency (RF) solutions and technologies for mobile device, infrastructure, and defense and aerospace applications worldwide. It operates through Mobile Products (MP) and Infrastructure and Defense Products (IDP) segments. The MP segment offers cellular RF and WiFi solutions, bulk acoustic wave (BAW) and surface acoustic wave (SAW) filters, power amplifiers (PA), low noise amplifiers, switches, multi-band PAs and transmit modules, RF power management integrated circuits, diversity receive modules, antenna switch modules, antenna tuning and control solutions, modules incorporating PAs and duplexers, and modules incorporating switches, PAs, and duplexers. This segment supplies its solutions for use in mobile devices, including smartphones, notebook computers, wearables, tablets, and cellular-based applications for the Internet of things. The IDP segment supplies RF solutions for communications, network infrastructure, and defense applications, such as high performance defense systems, such as radar, electronic warfare and communication systems, Wi-Fi customer premises equipment for home and work, high speed connectivity in long-term evolution and 5G base stations, cloud connectivity via data center communications and telecom transport, and automotive connectivity and smart home solutions. This segment provides high power gallium arsenide, gallium nitride power amplifiers, low noise amplifiers, switches, CMOS system-on-a-chip solutions, premium BAW and SAW filter solutions, and various multichip and hybrid assemblies. The company sells its products directly to customers, as well as through a network of domestic and foreign sales representative firms and distributors to original equipment manufacturers and original design manufacturers. Qorvo, Inc. was founded in 1991 and is headquartered in Greensboro, North Carolina.

About ON Semiconductor

ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. It operates through three segments: Power Solutions Group, Analog Solutions Group, and Image Sensor Group. The Power Solutions Group segment offers discrete, module, and integrated semiconductor products for various applications, such as power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference. The Analog Solutions Group segment designs and develops analog, mixed-signal, and logic application specific integrated circuits and standard products, as well as power solutions for a range of end-users in the automotive, consumer, computing, industrial, communications, medical, and aerospace/defense markets. This segment also provides trusted foundry, trusted design, and manufacturing services, as well as integrated passive devices product technology. The Image Sensor Group segment offers complementary metal oxide semiconductors and charge-coupled device image sensors, as well as proximity sensors, image signal processors, and actuator drivers for autofocus and image stabilization for a range of customers in automotive, industrial, consumer, wireless, medical, and aerospace/defense markets. The company serves original equipment manufacturers, distributors, and electronic manufacturing service providers. ON Semiconductor Corporation was founded in 1999 and is headquartered in Phoenix, Arizona.

Receive News & Ratings for Qorvo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Qorvo and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply