SafetyMargin.ioSafetyMargin.io
BlogWatchlistCompare
Compare Stocks › GOOGL vs ON

Alphabet Inc. (GOOGL) vs ON Semiconductor Corporation (ON): Which Is the Better Buy in 2026?

As of 2026-06-19, GOOGL is overvalued at $368, with a DCF intrinsic value of $94 and a margin of safety of -290%. ON is undervalued at $122, with an intrinsic value of $337 and a margin of safety of 64%. Of the two, ON has the wider margin of safety.

GOOGL
Alphabet Inc.
$368.03
VS
ON
ON Semiconductor Corporation
$121.62

Rewards

GOOGL
  • ★Alphabet Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 60.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Alphabet Inc. scores 89/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
ON
  • ★PEG ratio of 0.39 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
  • ★Altman Z-Score of 4.70 indicates very low bankruptcy risk — the company is firmly in the safe zone.

Risks

GOOGL
  • ⚠FCF yield of 1.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
ON
  • ⚠ROIC has declined by 17.0 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠FCF yield of 2.7% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠Trailing P/E of 89.4x is 53% above the historical average of 58.6x — the stock trades at a premium to its own history.

Key Valuation Metrics

Learn more →
GOOGL
ON
Valuation
$73.27B
Free Cash Flow
$1.28B
1.63%
FCF Yield
2.71%
28.09
Trailing P/E
89.43
25.39
Forward P/E
28.40
Quality & Moat
20.98%
ROIC
8.26%
38.88%
ROE
7.49%
60.37%
Gross Margin
42.67%
1.47
PEG Ratio
0.39
Balance Sheet Safety
Net cash
Net Debt / Equity
0.12
N/A
Interest Coverage
N/A
-0.19
Net Debt / EBITDA
0.41
0.24%
Dividend Yield
0.00%
GOOGL: 9Ties: 1ON: 2
GOOGLON

Historical Fundamentals

Learn more →
GOOGL

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

ON

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

Learn more →
GOOGL
$9.18
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$288.67B
Δ Market Cap
+$2.65T
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
ON
$-1.41
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$3.88B
Δ Market Cap
$-5.46B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

Learn more →
GOOGL
289.6% Overvalued
Price is 289.6% above estimated fair value
Current Price: $368.03
Fair Value: $94.46
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
ON
36.9% Overvalued
Price is 36.9% above estimated fair value
Current Price: $121.62
Fair Value: $88.83
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

Learn more →
GOOGL

What growth rate is the market pricing in at $368?

+22.9%
Market-Implied FCF Growth Rate

Market pricing in significantly higher growth than history — aggressive.

ON

What growth rate is the market pricing in at $122?

+30.4%
Market-Implied Owner Earnings Growth
Standard FCF implies +16.3%

The market implies +30.4% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +16.3%, reflecting heavy growth investment.

Economic Moat Score

Learn more →
GOOGL
89/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by roic consistency. Reinvestment Efficiency is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
ON
41/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with roic consistency as the key competitive advantage. Improving margin stability would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

Learn more →
GOOGL
-2.92
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
ON
-3.04
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

Learn more →
GOOGL
Insiders 1.2%Institutions 80.8%Retail & Other 18.1%
No. of Institutional Holders7,263
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
ON
Insiders 0.3%Institutions 108.9%
No. of Institutional Holders1,223
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

Learn more →
GOOGL
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
ON
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

Learn more →
GOOGL
0
Sells (3M)
0
Sells (12M)
No open market insider sales found.
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
ON
2
Sells (3M)
9
Sells (12M)
Total value (12M): $20.83M
THAD TRENT
Chief Financial Officer
$5.79M
@ $96.50 · 2026-04-24
THAD TRENT
Chief Financial Officer
$2.40M
@ $80.00 · 2026-04-16
GOPALSWAMY SUDHIR
Officer
$358,708
@ $58.67 · 2026-03-13
KEETON SIMON
Officer
$3.51M
@ $71.75 · 2026-02-17
EL KHOURY HASSANE
Chief Executive Officer
$1.46M
@ $73.02 · 2026-02-12
THAD TRENT
Chief Financial Officer
$4.27M
@ $71.22 · 2026-02-12
KEETON SIMON
Officer
$1.17M
@ $55.72 · 2025-12-04
THAD TRENT
Chief Financial Officer
$1.10M
@ $55.05 · 2025-12-03
EL KHOURY HASSANE
Chief Executive Officer
$768,260
@ $51.22 · 2025-08-13
CAMPBELL ALAN
Director
$274,780
@ $51.16 · 2025-06-12
CAMPBELL ALAN
Director
$432,257
@ $43.23 · 2025-03-12
KEETON SIMON
Officer
$1.92M
@ $68.56 · 2024-12-17
GOPALSWAMY SUDHIR
Officer
$1.43M
@ $67.64 · 2024-12-17
EL KHOURY HASSANE
Chief Executive Officer
$105,000
@ $70.00 · 2024-12-17
EL KHOURY HASSANE
Chief Executive Officer
$106,500
@ $71.00 · 2024-11-25
EL KHOURY HASSANE
Chief Executive Officer
$109,065
@ $72.71 · 2024-10-15
EL KHOURY HASSANE
Chief Executive Officer
$106,200
@ $70.80 · 2024-09-16
KEETON SIMON
Officer
$2.41M
@ $77.94 · 2024-07-31
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

Learn more →
GOOGL
FearGreed
😐Neutral(58/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
ON
FearGreed
😐Neutral(50/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

Learn more →
GOOGL
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (58)
ON
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (50)
View GOOGL Full AnalysisView ON Full Analysis

Frequently Asked Questions: GOOGL vs ON

Is Alphabet Inc. or ON Semiconductor Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, ON trades at a 63.9% margin of safety (intrinsic value $337 vs. price $122), compared to GOOGL's -289.6% margin of safety (intrinsic $94 vs. $368).

Which stock has a wider economic moat, Alphabet Inc. or ON Semiconductor Corporation?▼

GOOGL scores 89/100 (Wide moat), while ON scores 41/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Alphabet Inc. in financial distress?▼

GOOGL's Altman Z-Score of 2.4 places it in the Grey zone, signaling elevated bankruptcy risk. ON scores 4.7 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which company has better free cash flow, Alphabet Inc. or ON Semiconductor Corporation?▼

ON Semiconductor Corporation (ON) generates a 2.7% free cash flow yield, compared to Alphabet Inc.'s 1.6%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, Alphabet Inc. or ON Semiconductor Corporation?▼

GOOGL earns 21.0% ROIC versus ON's 8.3%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.