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

Updated on July 7, 2025

Here’s a clear look at ANET 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 ANET’s 128.76 billion USD, highlighting its more substantial market valuation.

With betas of 1.38 for ANET 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. ANET, on the other hand, is a domestic entity.

Symbol	ANET	TSM
Company Name	Arista Networks, Inc.	Taiwan Semiconductor Manufacturing Company Limited
Country	US	TW
Sector	Technology	Technology
Industry	Computer Hardware	Semiconductors
CEO	Jayshree V. Ullal	C. C. Wei
Price	102.52 USD	234.8 USD
Market Cap	128.76 billion USD	1,217.79 billion USD
Beta	1.38	1.34
Exchange	NYSE	NYSE
IPO Date	June 6, 2014	October 9, 1997
ADR	No	Yes

Historical Performance

This chart compares the performance of ANET 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.

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

Profitability

Return on Equity

ANET

32.05%

Computer Hardware Industry

Max: 123.03%
Q3: 15.78%
Median: -13.44%
Q1: -119.16%
Min: -227.95%

In the upper quartile for the Computer Hardware industry, ANET’s Return on Equity of 32.05% 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.

ANET vs. TSM: A comparison of their ROE against their respective Computer Hardware and Semiconductors industry benchmarks.

Return on Invested Capital

ANET

23.89%

Computer Hardware Industry

Max: 30.37%
Q3: 20.44%
Median: 7.03%
Q1: -12.47%
Min: -31.70%

In the upper quartile for the Computer Hardware industry, ANET’s Return on Invested Capital of 23.89% 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.

ANET vs. TSM: A comparison of their ROIC against their respective Computer Hardware and Semiconductors industry benchmarks.

Net Profit Margin

ANET

40.72%

Computer Hardware Industry

Max: 40.72%
Q3: 10.87%
Median: 4.33%
Q1: -378.64%
Min: -753.20%

A Net Profit Margin of 40.72% places ANET in the upper quartile for the Computer Hardware 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.

ANET vs. TSM: A comparison of their Net Profit Margin against their respective Computer Hardware and Semiconductors industry benchmarks.

Operating Profit Margin

ANET

42.27%

Computer Hardware Industry

Max: 42.27%
Q3: 13.53%
Median: 4.56%
Q1: -295.01%
Min: -592.84%

An Operating Profit Margin of 42.27% places ANET in the upper quartile for the Computer Hardware 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.

ANET vs. TSM: A comparison of their Operating Margin against their respective Computer Hardware and Semiconductors industry benchmarks.

Profitability at a Glance

Symbol	ANET	TSM
Return on Equity (TTM)	32.05%	31.41%
Return on Assets (TTM)	20.86%	18.36%
Return on Invested Capital (TTM)	23.89%	21.11%
Net Profit Margin (TTM)	40.72%	41.69%
Operating Profit Margin (TTM)	42.27%	47.12%
Gross Profit Margin (TTM)	64.09%	57.41%

Financial Strength

Current Ratio

ANET

3.93

Computer Hardware Industry

Max: 20.73
Q3: 11.54
Median: 2.69
Q1: 1.40
Min: 0.73

ANET’s Current Ratio of 3.93 aligns with the median group of the Computer Hardware 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.

ANET vs. TSM: A comparison of their Current Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Debt-to-Equity Ratio

ANET

Computer Hardware Industry

Max: 1.36
Q3: 0.67
Median: 0.04
Q1: 0.03
Min: 0.00

Debt-to-Equity Ratio data for ANET is currently unavailable.

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.

ANET vs. TSM: A comparison of their D/E Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Interest Coverage Ratio

ANET

Computer Hardware Industry

Max: 32.50
Q3: 21.85
Median: 4.98
Q1: -7.71
Min: -34.24

Interest Coverage Ratio data for ANET 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.

ANET vs. TSM: A comparison of their Interest Coverage against their respective Computer Hardware and Semiconductors industry benchmarks.

Financial Strength at a Glance

Symbol	ANET	TSM
Current Ratio (TTM)	3.93	2.39
Quick Ratio (TTM)	3.31	2.18
Debt-to-Equity Ratio (TTM)	--	0.21
Debt-to-Asset Ratio (TTM)	--	0.14
Net Debt-to-EBITDA Ratio (TTM)	-0.58	-0.78
Interest Coverage Ratio (TTM)	--	280.65

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

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

Dividend

Dividend Yield

ANET

0.00%

Computer Hardware Industry

Max: 9.24%
Q3: 1.58%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ANET 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.

ANET vs. TSM: A comparison of their Dividend Yield against their respective Computer Hardware and Semiconductors industry benchmarks.

Dividend Payout Ratio

ANET

0.00%

Computer Hardware Industry

Max: 193.79%
Q3: 30.72%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ANET 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.

ANET vs. TSM: A comparison of their Payout Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Dividend at a Glance

Symbol	ANET	TSM
Dividend Yield (TTM)	0.00%	1.57%
Dividend Payout Ratio (TTM)	0.00%	29.71%

Valuation

Price-to-Earnings Ratio

ANET

42.66

Computer Hardware Industry

Max: 24.60
Q3: 24.01
Median: 20.31
Q1: 18.24
Min: 13.38

At 42.66, ANET’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Computer Hardware industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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.

ANET vs. TSM: A comparison of their P/E Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Forward P/E to Growth Ratio

ANET

1.80

Computer Hardware Industry

Max: 9.77
Q3: 5.18
Median: 1.77
Q1: 1.17
Min: 0.02

The Forward PEG Ratio is often not a primary valuation metric in the Computer Hardware industry.

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.

ANET vs. TSM: A comparison of their Forward PEG Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Price-to-Sales Ratio

ANET

17.31

Computer Hardware Industry

Max: 57.61
Q3: 47.40
Median: 3.37
Q1: 1.56
Min: 0.43

ANET’s P/S Ratio of 17.31 aligns with the market consensus for the Computer Hardware 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.

ANET vs. TSM: A comparison of their P/S Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Price-to-Book Ratio

ANET

12.77

Computer Hardware Industry

Max: 21.21
Q3: 14.71
Median: 9.28
Q1: 3.74
Min: 0.43

ANET’s P/B Ratio of 12.77 is within the conventional range for the Computer Hardware 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.

ANET vs. TSM: A comparison of their P/B Ratio against their respective Computer Hardware and Semiconductors industry benchmarks.

Valuation at a Glance

Symbol	ANET	TSM
Price-to-Earnings Ratio (P/E, TTM)	42.66	21.49
Forward PEG Ratio (TTM)	1.80	1.19
Price-to-Sales Ratio (P/S, TTM)	17.31	8.96
Price-to-Book Ratio (P/B, TTM)	12.77	6.12
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	34.02	30.50
EV-to-EBITDA (TTM)	39.62	12.03
EV-to-Sales (TTM)	17.07	8.41