ABT vs. TSM: A Head-to-Head Stock Comparison

Updated on July 7, 2025

Here’s a clear look at ABT 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 ABT’s 233.90 billion USD, highlighting its more substantial market valuation.

TSM carries a higher beta at 1.34, indicating it’s more sensitive to market moves, while ABT (beta: 0.74) exhibits greater stability.

TSM is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ABT, on the other hand, is a domestic entity.

Symbol	ABT	TSM
Company Name	Abbott Laboratories	Taiwan Semiconductor Manufacturing Company Limited
Country	US	TW
Sector	Healthcare	Technology
Industry	Medical - Devices	Semiconductors
CEO	Robert B. Ford	C. C. Wei
Price	134.44 USD	234.8 USD
Market Cap	233.90 billion USD	1,217.79 billion USD
Beta	0.74	1.34
Exchange	NYSE	NYSE
IPO Date	March 17, 1980	October 9, 1997
ADR	No	Yes

Historical Performance

This chart compares the performance of ABT 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.

ABT vs. TSM: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ABT

30.76%

Medical - Devices Industry

Max: 49.04%
Q3: 9.53%
Median: -7.46%
Q1: -32.83%
Min: -82.64%

In the upper quartile for the Medical - Devices industry, ABT’s Return on Equity of 30.76% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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.

ABT vs. TSM: A comparison of their ROE against their respective Medical - Devices and Semiconductors industry benchmarks.

Return on Invested Capital

ABT

19.13%

Medical - Devices Industry

Max: 21.88%
Q3: 6.63%
Median: -1.11%
Q1: -21.08%
Min: -51.95%

In the upper quartile for the Medical - Devices industry, ABT’s Return on Invested Capital of 19.13% 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.

ABT vs. TSM: A comparison of their ROIC against their respective Medical - Devices and Semiconductors industry benchmarks.

Net Profit Margin

ABT

31.89%

Medical - Devices Industry

Max: 44.80%
Q3: 9.77%
Median: -5.53%
Q1: -29.37%
Min: -87.68%

A Net Profit Margin of 31.89% places ABT in the upper quartile for the Medical - Devices 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.

ABT vs. TSM: A comparison of their Net Profit Margin against their respective Medical - Devices and Semiconductors industry benchmarks.

Operating Profit Margin

ABT

16.97%

Medical - Devices Industry

Max: 30.13%
Q3: 13.12%
Median: 3.47%
Q1: -24.42%
Min: -80.56%

An Operating Profit Margin of 16.97% places ABT in the upper quartile for the Medical - Devices industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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.

ABT vs. TSM: A comparison of their Operating Margin against their respective Medical - Devices and Semiconductors industry benchmarks.

Profitability at a Glance

Symbol	ABT	TSM
Return on Equity (TTM)	30.76%	31.41%
Return on Assets (TTM)	16.58%	18.36%
Return on Invested Capital (TTM)	19.13%	21.11%
Net Profit Margin (TTM)	31.89%	41.69%
Operating Profit Margin (TTM)	16.97%	47.12%
Gross Profit Margin (TTM)	55.89%	57.41%

Financial Strength

Current Ratio

ABT

1.78

Medical - Devices Industry

Max: 12.68
Q3: 6.30
Median: 4.05
Q1: 1.85
Min: 0.01

ABT’s Current Ratio of 1.78 falls into the lower quartile for the Medical - Devices industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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.

ABT vs. TSM: A comparison of their Current Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Debt-to-Equity Ratio

ABT

0.27

Medical - Devices Industry

Max: 2.34
Q3: 1.09
Median: 0.37
Q1: 0.08
Min: 0.00

ABT’s Debt-to-Equity Ratio of 0.27 is typical for the Medical - Devices industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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.

ABT vs. TSM: A comparison of their D/E Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Interest Coverage Ratio

ABT

15.39

Medical - Devices Industry

Max: 18.18
Q3: 7.53
Median: 0.85
Q1: -9.80
Min: -33.94

ABT’s Interest Coverage Ratio of 15.39 is in the upper quartile for the Medical - Devices industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

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.

ABT vs. TSM: A comparison of their Interest Coverage against their respective Medical - Devices and Semiconductors industry benchmarks.

Financial Strength at a Glance

Symbol	ABT	TSM
Current Ratio (TTM)	1.78	2.39
Quick Ratio (TTM)	1.27	2.18
Debt-to-Equity Ratio (TTM)	0.27	0.21
Debt-to-Asset Ratio (TTM)	0.16	0.14
Net Debt-to-EBITDA Ratio (TTM)	0.60	-0.78
Interest Coverage Ratio (TTM)	15.39	280.65

Growth

The following charts compare key year-over-year (YoY) growth metrics for ABT and TSM. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ABT vs. TSM: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ABT vs. TSM: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ABT vs. TSM: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ABT

1.70%

Medical - Devices Industry

Max: 3.57%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 1.70%, ABT offers a more attractive income stream than most of its peers in the Medical - Devices industry, signaling a strong commitment to shareholder returns.

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.

ABT vs. TSM: A comparison of their Dividend Yield against their respective Medical - Devices and Semiconductors industry benchmarks.

Dividend Payout Ratio

ABT

28.92%

Medical - Devices Industry

Max: 102.12%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ABT’s Dividend Payout Ratio of 28.92% is in the upper quartile for the Medical - Devices industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

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.

ABT vs. TSM: A comparison of their Payout Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Dividend at a Glance

Symbol	ABT	TSM
Dividend Yield (TTM)	1.70%	1.57%
Dividend Payout Ratio (TTM)	28.92%	29.71%

Valuation

Price-to-Earnings Ratio

ABT

17.40

Medical - Devices Industry

Max: 90.56
Q3: 56.92
Median: 43.19
Q1: 21.79
Min: 5.55

In the lower quartile for the Medical - Devices industry, ABT’s P/E Ratio of 17.40 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

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.

ABT vs. TSM: A comparison of their P/E Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Forward P/E to Growth Ratio

ABT

1.73

Medical - Devices Industry

Max: 6.56
Q3: 3.52
Median: 2.22
Q1: 0.55
Min: 0.03

ABT’s Forward PEG Ratio of 1.73 is within the middle range of its peers in the Medical - Devices industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

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.

ABT vs. TSM: A comparison of their Forward PEG Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Price-to-Sales Ratio

ABT

5.52

Medical - Devices Industry

Max: 15.74
Q3: 8.12
Median: 3.40
Q1: 2.37
Min: 0.42

ABT’s P/S Ratio of 5.52 aligns with the market consensus for the Medical - Devices industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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.

ABT vs. TSM: A comparison of their P/S Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Price-to-Book Ratio

ABT

4.81

Medical - Devices Industry

Max: 16.65
Q3: 8.03
Median: 3.73
Q1: 1.92
Min: 0.65

ABT’s P/B Ratio of 4.81 is within the conventional range for the Medical - Devices 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.

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.

ABT vs. TSM: A comparison of their P/B Ratio against their respective Medical - Devices and Semiconductors industry benchmarks.

Valuation at a Glance

Symbol	ABT	TSM
Price-to-Earnings Ratio (P/E, TTM)	17.40	21.49
Forward PEG Ratio (TTM)	1.73	1.19
Price-to-Sales Ratio (P/S, TTM)	5.52	8.96
Price-to-Book Ratio (P/B, TTM)	4.81	6.12
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	35.14	30.50
EV-to-EBITDA (TTM)	21.49	12.03
EV-to-Sales (TTM)	5.68	8.41