AMAT vs. TSM: Applied Materials vs. Taiwan Semiconductor Mfg Stock Comparison

Company Profile

Applied Materials (AMAT) and Taiwan Semiconductor Mfg (TSM) both belong to the Semiconductors & Semiconductor Equipment industry, though AMAT is classified under Semiconductor Materials & Equipment while TSM falls under Semiconductors.

Applied Materials (AMAT) trades as ordinary local shares, while Taiwan Semiconductor Mfg (TSM) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both Applied Materials (AMAT) at 41.07% and Taiwan Semiconductor Mfg (TSM) at 41.86% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

For every dollar of sales, both Applied Materials (AMAT) at 30.05% and Taiwan Semiconductor Mfg (TSM) at 51.12% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

Both Applied Materials (AMAT) at 33.74% and Taiwan Semiconductor Mfg (TSM) at 58.66% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

Profitability Metrics

Growth

Taiwan Semiconductor Mfg (TSM) at 31.61% sits in the top revenue growth quartile, while Applied Materials (AMAT) at 4.39% is closer to the peer norm — faster top-line expansion for TSM.

Taiwan Semiconductor Mfg (TSM) at 46.41% sits in the top EPS growth quartile, while Applied Materials (AMAT) at 0.58% is closer to the peer norm — faster per-share earnings growth for TSM.

Growth Metrics

Financial Strength

Both Applied Materials (AMAT) at 2.42 and Taiwan Semiconductor Mfg (TSM) at 2.51 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

Both Applied Materials (AMAT) at 0.29 and Taiwan Semiconductor Mfg (TSM) at 0.12 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

Financial Strength Metrics

Dividends

Applied Materials (AMAT) at 0.62% pays an industry-typical yield; Taiwan Semiconductor Mfg (TSM) at 1.70% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

Applied Materials (AMAT) at 16.48% pays out a band-typical share of earnings, while Taiwan Semiconductor Mfg (TSM) at 24.46% distributes more than its industry norm — less retained, thinner cover.

Dividend Metrics

Valuation

Both Applied Materials (AMAT) at 28.71 and Taiwan Semiconductor Mfg (TSM) at 24.33 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

Taiwan Semiconductor Mfg (TSM) at 0.39 sits in the cheaper P/S ratio quartile while Applied Materials (AMAT) at 8.56 prices around its industry’s middle — TSM costs less per dollar of sales, though read it alongside growth and margins.

Both look rich against book: Applied Materials (AMAT) at 10.30 sits in the upper P/B ratio quartile, and Taiwan Semiconductor Mfg (TSM) at 71.65 prices even higher, above its industry range.

Valuation Metrics