ARM vs. TSM: Arm Holdings vs. Taiwan Semiconductor Mfg Stock Comparison

Company Profile

Arm Holdings (ARM) and Taiwan Semiconductor Mfg (TSM) are both classified in the Semiconductors sub-industry within the broader Semiconductors & Semiconductor Equipment industry, placing them in the closest GICS peer bucket.

Taiwan Semiconductor Mfg (TSM) has more than two decades of public-market history since October 9, 1997, whereas Arm Holdings (ARM) listed on September 14, 2023 and has a much shorter record to draw on.

Both Arm Holdings (ARM) and Taiwan Semiconductor Mfg (TSM) trade as ADRs — their core financials are comparable, but keep FX, depositary-program fees, and dividend withholding in view for each.

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

Taiwan Semiconductor Mfg (TSM) at 41.86% sits in the top ROE quartile, while Arm Holdings (ARM) at 11.35% is closer to the peer norm — stronger capital efficiency for TSM.

Taiwan Semiconductor Mfg (TSM) at 51.12% retains a top-quartile share of revenue as profit, ahead of Arm Holdings (ARM) at 17.13%, which keeps about the industry-typical share.

Taiwan Semiconductor Mfg (TSM) at 58.66% operates in the top operating margin quartile, ahead of Arm Holdings (ARM) at 13.93%, which runs around its industry’s norm.

Profitability Metrics

Growth

Taiwan Semiconductor Mfg (TSM) at 31.61% sits in the top revenue growth quartile, while Arm Holdings (ARM) at 22.79% 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 Arm Holdings (ARM) at 13.33% is closer to the peer norm — faster per-share earnings growth for TSM.

Growth Metrics

Financial Strength

Taiwan Semiconductor Mfg (TSM) at 2.51 keeps current ratio within its industry’s typical mid-range, while Arm Holdings (ARM) at 6.35 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

Both Arm Holdings (ARM) at 0.06 and Taiwan Semiconductor Mfg (TSM) at 0.12 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

Financial Strength Metrics

Dividends

Arm Holdings (ARM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Taiwan Semiconductor Mfg (TSM) reports a yield of 1.70%, ranking against industry peers normally.

Arm Holdings (ARM) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Taiwan Semiconductor Mfg (TSM) reports a payout of 24.46%, ranking against industry peers normally.

Dividend Metrics

Valuation

Taiwan Semiconductor Mfg (TSM) at 24.33 is near its industry’s usual P/E ratio, while Arm Holdings (ARM) at 200.71 sits above its peer range — an unusually expensive price for ARM’s trailing earnings.

Taiwan Semiconductor Mfg (TSM) at 0.39 sits in the cheaper P/S ratio quartile while Arm Holdings (ARM) at 34.20 prices above its industry range — a wide gap in sales valuation between them.

Measured against book value, both Arm Holdings (ARM) at 20.56 and Taiwan Semiconductor Mfg (TSM) at 71.65 look expensive — each P/B ratio sits above its industry’s benchmark range.

Valuation Metrics