ON or MPWR: Which Is the Better Value Stock Right Now?

Core Viewpoint - The comparison between ON Semiconductor Corp. and Monolithic Power highlights ON as a more attractive option for value investors based on various financial metrics and rankings [1][3][6] Group 1: Zacks Rank and Earnings Outlook - ON Semiconductor Corp. has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Monolithic Power, which has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank strategy focuses on companies with positive earnings estimate revisions, which is a key factor for value investors [2][3] Group 2: Valuation Metrics - ON has a forward P/E ratio of 21.69, significantly lower than Monolithic Power's forward P/E of 55.29, suggesting ON is more undervalued [5] - The PEG ratio for ON is 2.51, while Monolithic Power's PEG ratio is 2.74, indicating ON's expected earnings growth is more favorable [5] - ON's P/B ratio stands at 2.59, compared to Monolithic Power's P/B of 13.63, further supporting ON's valuation attractiveness [6] Group 3: Value Grades - ON Semiconductor Corp. has earned a Value grade of B, while Monolithic Power has received a Value grade of F, reinforcing the perception that ON is the better investment choice for value investors [6]