Sifting through countless of stocks in the Semiconductors & Semiconductor Equipment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in KLA Corporation or ON Semiconductor Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how KLA Corporation and ON Semiconductor Corporation compare based on key financial metrics to determine which better meets your investment needs.

About KLA Corporation and ON Semiconductor Corporation

KLA Corporation, together with its subsidiaries, designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. The company operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. It offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned wafers; metrology systems to measure pattern dimensions, film thickness, film stress, layer-to-layer alignment, pattern placement, surface topography, and electro-optical properties for wafers; chemical process control equipment; wired and wireless sensor wafers and reticles; wafer defect inspection, review, and metrology systems; reticle inspection and metrology systems; wafer inspection and metrology systems; and semiconductor software solutions that provide run-time process control, defect excursion identification, process corrections, and defect classification to accelerate yield learning rates and reduce production risk. The company also provides etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, it offers direct imaging, inspection, optical shaping, inkjet and additive printing, and computer-aided manufacturing and engineering solutions for the PCB market and inspection and metrology systems for quality control and yield improvement in advanced and traditional semiconductor packaging markets. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.

ON Semiconductor Corporation provides intelligent sensing and power solutions in Hong Kong, Singapore, the United Kingdom, the United States, and internationally. The company operates through three segments Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module and integrated semiconductor products that perform multiple application functions, including power switching, signal conditioning, and circuit protection. The Analog and Mixed-Signal Group segment designs and develops analogues, mixed-signal, power management ICs, sensor interface devices, power conversion, signal chain, and voltage regulation devices for end-users in the automotive, industrial, computing and mobile end-markets. The Intelligent Sensing Group segment designs and develops complementary metal oxide semiconductor image sensors, image signal processors, single photon detectors, including silicon photomultipliers, single photon avalanche diode arrays, and short-wavelength infrared products, as well as actuator drivers for autofocus and image stabilization for a broad base of end-users in the different end-markets. ON Semiconductor Corporation was incorporated in 1992 and is headquartered in Scottsdale, Arizona.

Latest Semiconductors & Semiconductor Equipment and KLA Corporation, ON Semiconductor Corporation Stock News

As of December 12, 2025, KLA Corporation had a $156.9 billion market capitalization, compared to the Semiconductors & Semiconductor Equipment median of $2.7 million. KLA Corporation’s stock is up 89.5% in 2025, down 1.7% in the previous five trading days and up 86.01% in the past year.

Currently, KLA Corporation’s price-earnings ratio is 37.5. KLA Corporation’s trailing 12-month revenue is $12.5 billion with a 33.8% net profit margin. Year-over-year quarterly sales growth most recently was 13.0%. Analysts expect adjusted earnings to reach $35.813 per share for the current fiscal year. KLA Corporation currently has a 0.6% dividend yield.

As of December 12, 2025, ON Semiconductor Corporation had a $22.1 billion market cap, putting it in the 88th percentile of all stocks. ON Semiconductor Corporation’s stock is down 12.8% in 2025, up 0.4% in the previous five trading days and down 17.15% in the past year.

Currently, ON Semiconductor Corporation’s price-earnings ratio is 72.8. ON Semiconductor Corporation’s trailing 12-month revenue is $6.2 billion with a 5.2% net profit margin. Year-over-year quarterly sales growth most recently was -12.0%. Analysts expect adjusted earnings to reach $2.331 per share for the current fiscal year. ON Semiconductor Corporation does not currently pay a dividend.

How We Compare KLA Corporation and ON Semiconductor Corporation Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at KLA Corporation and ON Semiconductor Corporation’s stock grades to see how they measure up against one another.

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KLA Corporation and ON Semiconductor Corporation Growth Grades

Company	Ticker	Growth
KLA Corporation	KLAC	A
ON Semiconductor Corporation	ON	B

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

KLA Corporation has a Growth Score of 87, which is Very Strong. ON Semiconductor Corporation has a Growth Score of 64, which is Strong.

The Growth Grade Winner: KLA Corporation

As you can clearly see from the Growth Grade breakdown above, KLA Corporation has a more attractive growth grade than ON Semiconductor Corporation. For investors who focus solely on how a company is growing relative to other companies in the same industry, KLA Corporation could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

KLA Corporation and ON Semiconductor Corporation’s Quality Grades

Company	Ticker	Quality
KLA Corporation	KLAC	A
ON Semiconductor Corporation	ON	A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

KLA Corporation has a Quality Score of 99, which is Very Strong. ON Semiconductor Corporation has a Quality Score of 87, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both KLA Corporation and ON Semiconductor Corporation have a grade of A. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

KLA Corporation and ON Semiconductor Corporation’s Momentum Grades

Company	Ticker	Momentum
KLA Corporation	KLAC	A
ON Semiconductor Corporation	ON	C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

KLA Corporation has a Momentum Score of 86, which is Very Strong. ON Semiconductor Corporation has a Momentum Score of 43, which is Average.

The Momentum Grade Winner: KLA Corporation

As you can clearly see from the Momentum Grade breakdown above, KLA Corporation is considered to have stronger momentum compared to ON Semiconductor Corporation. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, KLA Corporation could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other KLA Corporation and ON Semiconductor Corporation Grades

In addition to Growth, Quality and Momentum, A+ Investor also provides grades for Value and Estimate Revisions.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether KLA Corporation and ON Semiconductor Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, KLA Corporation or ON Semiconductor Corporation Stock?

Overall, KLA Corporation stock has a Growth Score of 87, Momentum Score of 86 and Quality Score of 99.

ON Semiconductor Corporation stock has a Growth Score of 64, Momentum Score of 43 and Quality Score of 87.

Comparing KLA Corporation and ON Semiconductor Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.