ABNB vs. TSM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABNB and TSM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
TSM’s market capitalization of 1,217.79 billion USD is significantly greater than ABNB’s 85.50 billion USD, highlighting its more substantial market valuation.
With betas of 1.14 for ABNB and 1.34 for TSM, both stocks show similar sensitivity to overall market movements.
TSM is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ABNB, on the other hand, is a domestic entity.
| Symbol | ABNB | TSM |
|---|---|---|
| Company Name | Airbnb, Inc. | Taiwan Semiconductor Manufacturing Company Limited |
| Country | US | TW |
| Sector | Consumer Cyclical | Technology |
| Industry | Travel Services | Semiconductors |
| CEO | Brian Chesky | C. C. Wei |
| Price | 136.49 USD | 234.8 USD |
| Market Cap | 85.50 billion USD | 1,217.79 billion USD |
| Beta | 1.14 | 1.34 |
| Exchange | NASDAQ | NYSE |
| IPO Date | December 10, 2020 | October 9, 1997 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ABNB and TSM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ABNB
30.91%
Travel Services Industry
- Max
- 73.02%
- Q3
- 34.55%
- Median
- 12.42%
- Q1
- -4.86%
- Min
- -43.74%
ABNB’s Return on Equity of 30.91% is on par with the norm for the Travel Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
TSM
31.41%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
In the upper quartile for the Semiconductors industry, TSM’s Return on Equity of 31.41% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
ABNB
18.96%
Travel Services Industry
- Max
- 20.68%
- Q3
- 16.03%
- Median
- 10.02%
- Q1
- 6.13%
- Min
- 3.60%
In the upper quartile for the Travel Services industry, ABNB’s Return on Invested Capital of 18.96% signifies a highly effective use of its capital to generate profits when compared to its peers.
TSM
21.11%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
In the upper quartile for the Semiconductors industry, TSM’s Return on Invested Capital of 21.11% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ABNB
22.60%
Travel Services Industry
- Max
- 30.84%
- Q3
- 20.18%
- Median
- 9.77%
- Q1
- 7.81%
- Min
- -5.69%
A Net Profit Margin of 22.60% places ABNB in the upper quartile for the Travel Services industry, signifying strong profitability and more effective cost management than most of its peers.
TSM
41.69%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
A Net Profit Margin of 41.69% places TSM in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ABNB
22.17%
Travel Services Industry
- Max
- 32.49%
- Q3
- 23.05%
- Median
- 17.29%
- Q1
- 11.44%
- Min
- 3.62%
ABNB’s Operating Profit Margin of 22.17% is around the midpoint for the Travel Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
TSM
47.12%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
An Operating Profit Margin of 47.12% places TSM in the upper quartile for the Semiconductors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ABNB | TSM |
|---|---|---|
| Return on Equity (TTM) | 30.91% | 31.41% |
| Return on Assets (TTM) | 10.13% | 18.36% |
| Return on Invested Capital (TTM) | 18.96% | 21.11% |
| Net Profit Margin (TTM) | 22.60% | 41.69% |
| Operating Profit Margin (TTM) | 22.17% | 47.12% |
| Gross Profit Margin (TTM) | 83.05% | 57.41% |
Financial Strength
Current Ratio
ABNB
1.27
Travel Services Industry
- Max
- 1.90
- Q3
- 1.56
- Median
- 1.16
- Q1
- 0.68
- Min
- 0.18
ABNB’s Current Ratio of 1.27 aligns with the median group of the Travel Services industry, indicating that its short-term liquidity is in line with its sector peers.
TSM
2.39
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
TSM’s Current Ratio of 2.39 falls into the lower quartile for the Semiconductors industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
ABNB
0.29
Travel Services Industry
- Max
- 2.53
- Q3
- 2.25
- Median
- 1.87
- Q1
- 0.29
- Min
- 0.20
Falling into the lower quartile for the Travel Services industry, ABNB’s Debt-to-Equity Ratio of 0.29 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
TSM
0.21
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
TSM’s Debt-to-Equity Ratio of 0.21 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ABNB
--
Travel Services Industry
- Max
- 9.48
- Q3
- 6.06
- Median
- 3.05
- Q1
- 2.58
- Min
- 0.53
Interest Coverage Ratio data for ABNB is currently unavailable.
TSM
280.65
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
With an Interest Coverage Ratio of 280.65, TSM demonstrates a superior capacity to service its debt, placing it well above the typical range for the Semiconductors industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ABNB | TSM |
|---|---|---|
| Current Ratio (TTM) | 1.27 | 2.39 |
| Quick Ratio (TTM) | 1.27 | 2.18 |
| Debt-to-Equity Ratio (TTM) | 0.29 | 0.21 |
| Debt-to-Asset Ratio (TTM) | 0.09 | 0.14 |
| Net Debt-to-EBITDA Ratio (TTM) | -2.07 | -0.78 |
| Interest Coverage Ratio (TTM) | -- | 280.65 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABNB and TSM. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ABNB
0.00%
Travel Services Industry
- Max
- 4.09%
- Q3
- 0.54%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ABNB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
TSM
1.57%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.57%, TSM offers a more attractive income stream than most of its peers in the Semiconductors industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ABNB
0.00%
Travel Services Industry
- Max
- 37.56%
- Q3
- 4.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ABNB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
TSM
29.71%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TSM’s Dividend Payout Ratio of 29.71% is within the typical range for the Semiconductors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ABNB | TSM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.57% |
| Dividend Payout Ratio (TTM) | 0.00% | 29.71% |
Valuation
Price-to-Earnings Ratio
ABNB
33.40
Travel Services Industry
- Max
- 43.15
- Q3
- 34.01
- Median
- 22.22
- Q1
- 16.56
- Min
- 9.02
ABNB’s P/E Ratio of 33.40 is within the middle range for the Travel Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
TSM
21.49
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
TSM’s P/E Ratio of 21.49 is within the middle range for the Semiconductors industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ABNB
1.66
Travel Services Industry
- Max
- 2.37
- Q3
- 1.61
- Median
- 1.00
- Q1
- 0.54
- Min
- 0.02
A Forward PEG Ratio of 1.66 places ABNB in the upper quartile for the Travel Services industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
TSM
1.19
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
Price-to-Sales Ratio
ABNB
7.61
Travel Services Industry
- Max
- 7.69
- Q3
- 5.64
- Median
- 2.87
- Q1
- 0.93
- Min
- 0.41
ABNB’s P/S Ratio of 7.61 is in the upper echelon for the Travel Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
TSM
8.96
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
TSM’s P/S Ratio of 8.96 aligns with the market consensus for the Semiconductors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ABNB
10.68
Travel Services Industry
- Max
- 10.52
- Q3
- 10.49
- Median
- 9.35
- Q1
- 4.57
- Min
- 1.91
The P/B Ratio is often not a primary valuation metric for the Travel Services industry.
TSM
6.12
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
TSM’s P/B Ratio of 6.12 is within the conventional range for the Semiconductors industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ABNB | TSM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 33.40 | 21.49 |
| Forward PEG Ratio (TTM) | 1.66 | 1.19 |
| Price-to-Sales Ratio (P/S, TTM) | 7.61 | 8.96 |
| Price-to-Book Ratio (P/B, TTM) | 10.68 | 6.12 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 19.50 | 30.50 |
| EV-to-EBITDA (TTM) | 31.25 | 12.03 |
| EV-to-Sales (TTM) | 7.14 | 8.41 |