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

Updated

Here’s a clear look at APP and TSM, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

TSM towers over APP with a market cap of 994.57 billion USD, roughly 8.20 times the 121.26 billion USD of its peer.

APP rides a wilder wave with a beta of 2.39, hinting at bigger swings than TSM’s steadier 1.32.

Quick note: TSM sports an ADR tag, marking it as a foreign player on U.S. exchanges, unlike the homegrown APP.

SymbolAPPTSM
Company NameAppLovin CorporationTaiwan Semiconductor Manufacturing Company Limited
CountryUSTW
SectorTechnologyTechnology
IndustrySoftware - ApplicationSemiconductors
CEOMr. Adam Arash ForoughiDr. C. C. Wei Ph.D.
Price358.35 USD191.76 USD
Market Cap121.26 billion USD994.57 billion USD
Beta2.3921.321
ExchangeNASDAQNYSE
IPO DateApril 15, 2021October 9, 1997
ADRNoYes

Performance Comparison

This chart compares the performance of APP and TSM over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

For a detailed comparison of valuation metrics between APP and TSM, please refer to the table below.

SymbolAPPTSM
Price-to-Earnings Ratio (P/E, TTM)63.4319.45
Forward PEG Ratio (TTM)2.431.10
Price-to-Sales Ratio (P/S, TTM)23.618.11
Price-to-Book Ratio (P/B, TTM)211.645.54
Price-to-Free Cash Flow Ratio (P/FCF, TTM)47.8727.60
EV-to-EBITDA (TTM)47.3010.81
EV-to-Sales (TTM)24.237.56
EV-to-Free Cash Flow (TTM)49.1225.74

Dividend Comparison

APP pays no dividends, focusing all profits on growth, appealing to capital-gains investors. Meanwhile, TSM’s 1.63% yield rewards shareholders, showing financial confidence while supporting objectives—a contrast to APP’s growth-only approach.

SymbolAPPTSM
Dividend Yield (TTM)0.00%1.63%

Financial Strength Metrics Comparison

This section dives into the financial resilience of APP and TSM, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • APP racks up a D/E of 6.45 over 3.0, leaning hard into debt and flirting with higher risk. Meanwhile, TSM clocks in at 0.21, staying on firmer ground.
SymbolAPPTSM
Current Ratio (TTM)1.682.39
Quick Ratio (TTM)1.682.18
Debt-to-Equity Ratio (TTM)6.450.21
Debt-to-Assets Ratio (TTM)0.650.14
Interest Coverage Ratio (TTM)7.41280.65