ANSS vs. TSM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ANSS 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 ANSS’s 32.31 billion USD, highlighting its more substantial market valuation.
With betas of 1.19 for ANSS 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. ANSS, on the other hand, is a domestic entity.
| Symbol | ANSS | TSM |
|---|---|---|
| Company Name | ANSYS, Inc. | Taiwan Semiconductor Manufacturing Company Limited |
| Country | US | TW |
| Sector | Technology | Technology |
| Industry | Software - Application | Semiconductors |
| CEO | Ajei S. Gopal | C. C. Wei |
| Price | 367.48 USD | 234.8 USD |
| Market Cap | 32.31 billion USD | 1,217.79 billion USD |
| Beta | 1.19 | 1.34 |
| Exchange | NASDAQ | NYSE |
| IPO Date | June 20, 1996 | October 9, 1997 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ANSS 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
ANSS
10.01%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
ANSS’s Return on Equity of 10.01% is on par with the norm for the Software - Application 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
ANSS
8.28%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
ANSS’s Return on Invested Capital of 8.28% is in line with the norm for the Software - Application industry, reflecting a standard level of efficiency in generating profits from its capital base.
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
ANSS
22.95%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 22.95% places ANSS in the upper quartile for the Software - Application 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
ANSS
28.87%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 28.87% places ANSS in the upper quartile for the Software - Application 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.
Profitability at a Glance
| Symbol | ANSS | TSM |
|---|---|---|
| Return on Equity (TTM) | 10.01% | 31.41% |
| Return on Assets (TTM) | 7.43% | 18.36% |
| Return on Invested Capital (TTM) | 8.28% | 21.11% |
| Net Profit Margin (TTM) | 22.95% | 41.69% |
| Operating Profit Margin (TTM) | 28.87% | 47.12% |
| Gross Profit Margin (TTM) | 88.78% | 57.41% |
Financial Strength
Current Ratio
ANSS
3.66
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
ANSS’s Current Ratio of 3.66 is in the upper quartile for the Software - Application industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its 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
ANSS
0.14
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
ANSS’s Debt-to-Equity Ratio of 0.14 is typical for the Software - Application 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.
Interest Coverage Ratio
ANSS
16.34
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
ANSS’s Interest Coverage Ratio of 16.34 is in the upper quartile for the Software - Application 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.
Financial Strength at a Glance
| Symbol | ANSS | TSM |
|---|---|---|
| Current Ratio (TTM) | 3.66 | 2.39 |
| Quick Ratio (TTM) | 3.66 | 2.18 |
| Debt-to-Equity Ratio (TTM) | 0.14 | 0.21 |
| Debt-to-Asset Ratio (TTM) | 0.10 | 0.14 |
| Net Debt-to-EBITDA Ratio (TTM) | -1.00 | -0.78 |
| Interest Coverage Ratio (TTM) | 16.34 | 280.65 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ANSS 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
ANSS
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ANSS 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
ANSS
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ANSS 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 | ANSS | TSM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.57% |
| Dividend Payout Ratio (TTM) | 0.00% | 29.71% |
Valuation
Price-to-Earnings Ratio
ANSS
54.22
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
ANSS’s P/E Ratio of 54.22 is within the middle range for the Software - Application 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
ANSS
6.92
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
A Forward PEG Ratio of 6.92 places ANSS in the upper quartile for the Software - Application 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
ANSS
12.51
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
ANSS’s P/S Ratio of 12.51 is in the upper echelon for the Software - Application 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
ANSS
5.20
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application 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 | ANSS | TSM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 54.22 | 21.49 |
| Forward PEG Ratio (TTM) | 6.92 | 1.19 |
| Price-to-Sales Ratio (P/S, TTM) | 12.51 | 8.96 |
| Price-to-Book Ratio (P/B, TTM) | 5.20 | 6.12 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 37.27 | 30.50 |
| EV-to-EBITDA (TTM) | 33.89 | 12.03 |
| EV-to-Sales (TTM) | 12.15 | 8.41 |