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Compare Stocks › ON vs PFE

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

As of 2026-06-19, ON is undervalued at $122, with a DCF intrinsic value of $337 and a margin of safety of 64%. PFE is overvalued at $25, with an intrinsic value of $22 and a margin of safety of -12%. Of the two, ON has the wider margin of safety.

ON
ON Semiconductor Corporation
$121.62
VS
PFE
Pfizer Inc.
$25.21

Rewards

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.
PFE
  • ★Gross margin of 74.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★FCF yield of 8.6% is historically attractive — the business generates significant cash relative to its price.
  • ★Trailing P/E of 19.2x is 37% below the historical average of 30.4x — potentially undervalued relative to its own history.

Risks

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.
PFE
  • ⚠ROIC has declined by 15.9 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠PEG ratio of 13.77 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Free cash flow has declined at a 29.6% CAGR over the past 4 years — a concerning trend.

Key Valuation Metrics

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ON
PFE
Valuation
$1.28B
Free Cash Flow
$12.38B
2.71%
FCF Yield
8.61%
89.43
Trailing P/E
19.24
28.40
Forward P/E
8.91
Quality & Moat
8.26%
ROIC
10.19%
7.49%
ROE
8.31%
42.67%
Gross Margin
74.80%
0.39
PEG Ratio
13.77
Balance Sheet Safety
0.12
Net Debt / Equity
0.57
N/A
Interest Coverage
N/A
0.41
Net Debt / EBITDA
2.03
0.00%
Dividend Yield
6.61%
ON: 3Ties: 1PFE: 8
ONPFE

Historical Fundamentals

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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.

PFE

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

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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
PFE
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-10.61B
Δ Market Cap
$-146.18B
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

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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
PFE
12.3% Overvalued
Price is 12.3% above estimated fair value
Current Price: $25.21
Fair Value: $22.46
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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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.

PFE

What growth rate is the market pricing in at $25?

+5.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +4.5%

The market implies +5.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +4.5%, reflecting heavy growth investment.

Economic Moat Score

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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.
PFE
35/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

Forensic Accounting

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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.
PFE
-2.53
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

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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.
PFE
Insiders 0.1%Institutions 69.4%Retail & Other 30.5%
No. of Institutional Holders3,744
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

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ON
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
PFE
0
Buys (3M)
0
Buys (12M)
BLAYLOCK RONALD E
Director
$499,072
@ $25.65 · 2025-02-13
GOTTLIEB SCOTT
Director
$28,240
@ $28.24 · 2024-10-30
Open market purchases · includes direct & indirect ownership · excludes option exercises

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

Insider Selling Activity

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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
PFE
1
Sells (3M)
1
Sells (12M)
Total value (12M): $51,400
DAMICO JENNIFER B.
Officer
$51,400
@ $25.70 · 2026-06-09
DAMICO JENNIFER B.
Officer
$64,825
@ $25.93 · 2025-03-04
DAMICO JENNIFER B.
Officer
$147,714
@ $28.66 · 2024-08-13
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

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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.
PFE
FearGreed
😐Neutral(49/100)

"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

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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)
PFE
⚪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 (49)
View ON Full AnalysisView PFE Full Analysis

Frequently Asked Questions: ON vs PFE

Is ON Semiconductor Corporation or Pfizer Inc. 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 PFE's -12.3% margin of safety (intrinsic $22 vs. $25).

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

ON scores 41/100 (Narrow moat), while PFE scores 35/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Pfizer Inc. in financial distress?▼

PFE's Altman Z-Score of 2.1 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, ON Semiconductor Corporation or Pfizer Inc.?▼

Pfizer Inc. (PFE) generates a 8.6% free cash flow yield, compared to ON Semiconductor Corporation's 2.7%. 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, ON Semiconductor Corporation or Pfizer Inc.?▼

PFE earns 10.2% 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.