NXP vs STMicroelectronics

Explore a detailed comparison between NXP Semiconductors NV and STMicroelectronics NV. This page provides an in-depth look at their respective business models, evaluates their financial performance, and considers their market context to offer a comprehensive overview. Educational content, not financial advice.

Explore a detailed comparison between NXP Semiconductors NV and STMicroelectronics NV. This page provides an in-depth look at their respective business models, evaluates their financial performance, a...

Comparison Snapshot

Key Financial Metrics

NXPI

Metric

STM

$58.15B

Market Cap

$25.86B

11.95%

Potential Profit

7.18%

Buy

Analyst Rating

Hold

Why It's Moving

NXP Semiconductors gears up for pivotal Q4 earnings as Wall Street anticipates growth amid sector tailwinds.

Analysts forecast EPS growth of 4.1% year-over-year, reflecting optimism for rebounding revenues in key embedded markets like automotive and industrial IoT.
Consensus revenue estimate climbs 6.2% from last year, driven by stronger demand signals despite recent institutional stake trims by funds like Cooke & Bieler.
Recent upward revisions in Wall Street targets from firms like Citigroup and Wells Fargo underscore confidence ahead of the February 3 earnings call.

Sentiment:

🐃Bullish

NXP Semiconductors gears up for pivotal Q4 earnings as Wall Street anticipates growth amid sector tailwinds.

Analysts forecast EPS growth of 4.1% year-over-year, reflecting optimism for rebounding revenues in key embedded markets like automotive and industrial IoT.
Consensus revenue estimate climbs 6.2% from last year, driven by stronger demand signals despite recent institutional stake trims by funds like Cooke & Bieler.
Recent upward revisions in Wall Street targets from firms like Citigroup and Wells Fargo underscore confidence ahead of the February 3 earnings call.

Sentiment:

🐃Bullish

Investment Analysis

NXP

NXPI

Pros

NXP holds leading position in automotive semiconductors, benefiting from EV and ADAS content growth.
ROIC of 12.91% exceeds WACC of 9.37%, creating shareholder value with improving trend.
Consensus forecasts revenue growth of 6% in FY2026 and EPS CAGR of 9% through FY2028.

Considerations

High debt levels with net debt over $7.8B and debt-to-equity ratio around 1.1 pose financial risks.
Recent revenue declined 4.99% in 2024 amid cyclical automotive market downturns.
Vulnerability to competition from Qualcomm and NVIDIA in core processing markets.

STMicroelectronics

STM

Pros

STMicroelectronics maintains strong competitive moat in analogue, MEMS, and microcontroller segments.
Favourable liquidity with current ratio above 2.5 supports short-term financial stability.
Diversified exposure across automotive, industrial, and personal electronics drives resilient demand.

Considerations

Elevated debt-to-equity ratio exceeds 0.4, increasing balance sheet vulnerability to downturns.
Recent quarterly revenue growth slowed due to weak industrial and automotive end-markets.
High exposure to cyclical semiconductor demand heightens risks from global economic slowdowns.

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