ASML vs. TSM: A Head-to-Head Stock Comparison
Here's a clear look at ASML and TSM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ASML | TSM |
|---|---|---|
| Company Name | ASML Holding N.V. | Taiwan Semiconductor Manufacturing Company Limited |
| Country | Netherlands | Taiwan |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Semiconductors & Semiconductor Equipment | Semiconductors & Semiconductor Equipment |
| GICS Industry | Semiconductors & Semiconductor Equipment | Semiconductors & Semiconductor Equipment |
| GICS Sub-Industry | Semiconductor Materials & Equipment | Semiconductors |
| Market Capitalization | 580.46 billion USD | 1,922.12 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | March 15, 1995 | October 9, 1997 |
| Security Type | NY Reg Shrs | ADR |
Both ASML and TSM offer U.S. investors access to foreign companies, with ASML trading as New York Registered Shares and TSM as an American Depositary Receipt (ADR).
TSM's market capitalization (1,922.12 billion USD) is significantly greater than ASML's (580.46 billion USD), highlighting its more substantial market valuation.
TSM is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ASML, on the other hand, is a domestic entity.
Historical Performance
This chart compares the performance of ASML 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.
Historical Performance at a Glance
| Symbol | ASML | TSM |
|---|---|---|
| 5-Day Price Return | 9.39% | 6.99% |
| 13-Week Price Return | 25.37% | 30.07% |
| 26-Week Price Return | 41.54% | 53.67% |
| 52-Week Price Return | 115.25% | 17.52% |
| Month-to-Date Return | 13.47% | 13.07% |
| Year-to-Date Return | 37.83% | 28.39% |
| 10-Day Avg. Volume | 0.81M | 41.18M |
| 3-Month Avg. Volume | 0.70M | 39.29M |
| 3-Month Volatility | 44.98% | 33.82% |
| Beta | 1.76 | 1.15 |
ASML's beta of 1.76 points to significantly higher volatility compared to TSM (beta: 1.15), suggesting ASML has greater potential for both gains and losses relative to market movements.
Profitability
Return on Equity (TTM)
ASML
52.14%
Semiconductors & Semiconductor Equipment Industry
- Max
- 48.79%
- Q3
- 20.13%
- Median
- 8.42%
- Q1
- 0.74%
- Min
- -24.06%
ASML's Return on Equity of 52.14% is exceptionally high, placing it well beyond the typical range for the Semiconductors & Semiconductor Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
TSM
35.12%
Semiconductors & Semiconductor Equipment Industry
- Max
- 48.79%
- Q3
- 20.13%
- Median
- 8.42%
- Q1
- 0.74%
- Min
- -24.06%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, TSM's Return on Equity of 35.12% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
ASML
29.42%
Semiconductors & Semiconductor Equipment Industry
- Max
- 45.10%
- Q3
- 22.27%
- Median
- 11.32%
- Q1
- 0.95%
- Min
- -24.07%
A Net Profit Margin of 29.42% places ASML in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
TSM
45.10%
Semiconductors & Semiconductor Equipment Industry
- Max
- 45.10%
- Q3
- 22.27%
- Median
- 11.32%
- Q1
- 0.95%
- Min
- -24.07%
A Net Profit Margin of 45.10% places TSM in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
ASML
34.60%
Semiconductors & Semiconductor Equipment Industry
- Max
- 60.38%
- Q3
- 27.84%
- Median
- 12.97%
- Q1
- 3.47%
- Min
- -25.47%
An Operating Profit Margin of 34.60% places ASML in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
TSM
50.82%
Semiconductors & Semiconductor Equipment Industry
- Max
- 60.38%
- Q3
- 27.84%
- Median
- 12.97%
- Q1
- 3.47%
- Min
- -25.47%
An Operating Profit Margin of 50.82% places TSM in the upper quartile for the Semiconductors & Semiconductor Equipment 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 | ASML | TSM |
|---|---|---|
| Return on Equity (TTM) | 52.14% | 35.12% |
| Return on Assets (TTM) | 20.67% | 23.35% |
| Net Profit Margin (TTM) | 29.42% | 45.10% |
| Operating Profit Margin (TTM) | 34.60% | 50.82% |
| Gross Profit Margin (TTM) | 52.83% | 59.89% |
Financial Strength
Current Ratio (MRQ)
ASML
1.26
Semiconductors & Semiconductor Equipment Industry
- Max
- 7.65
- Q3
- 4.52
- Median
- 3.01
- Q1
- 2.26
- Min
- 1.17
ASML's Current Ratio of 1.26 falls into the lower quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
TSM
2.62
Semiconductors & Semiconductor Equipment Industry
- Max
- 7.65
- Q3
- 4.52
- Median
- 3.01
- Q1
- 2.26
- Min
- 1.17
TSM's Current Ratio of 2.62 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
ASML
0.14
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.25
- Q3
- 0.54
- Median
- 0.22
- Q1
- 0.01
- Min
- 0.00
ASML's Debt-to-Equity Ratio of 0.14 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
TSM
0.18
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.25
- Q3
- 0.54
- Median
- 0.22
- Q1
- 0.01
- Min
- 0.00
TSM's Debt-to-Equity Ratio of 0.18 is typical for the Semiconductors & Semiconductor Equipment 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 (TTM)
ASML
145.76
Semiconductors & Semiconductor Equipment Industry
- Max
- 135.68
- Q3
- 56.62
- Median
- 14.83
- Q1
- 2.60
- Min
- -37.06
With an Interest Coverage Ratio of 145.76, ASML demonstrates a superior capacity to service its debt, placing it well above the typical range for the Semiconductors & Semiconductor Equipment industry. This stems from either robust earnings or a conservative debt load.
TSM
8.32
Semiconductors & Semiconductor Equipment Industry
- Max
- 135.68
- Q3
- 56.62
- Median
- 14.83
- Q1
- 2.60
- Min
- -37.06
TSM's Interest Coverage Ratio of 8.32 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ASML | TSM |
|---|---|---|
| Current Ratio (MRQ) | 1.26 | 2.62 |
| Quick Ratio (MRQ) | 0.79 | 2.42 |
| Debt-to-Equity Ratio (MRQ) | 0.14 | 0.18 |
| Interest Coverage Ratio (TTM) | 145.76 | 8.32 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | ASML | TSM |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 4.92% | 20.45% |
| Revenue Growth (TTM vs Prior YoY) | 15.58% | 31.61% |
| 3-Year Revenue CAGR | 15.55% | 18.94% |
| 5-Year Revenue CAGR | 18.50% | 23.25% |
EPS Growth
EPS Growth at a Glance
| Symbol | ASML | TSM |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 7.23% | 34.97% |
| EPS Growth (TTM vs Prior YoY) | -12.31% | 46.42% |
| 3-Year EPS CAGR | 20.47% | 19.11% |
| 5-Year EPS CAGR | 23.85% | 27.10% |
Dividend
Dividend Yield (TTM)
ASML
0.54%
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.98%
- Q3
- 0.93%
- Median
- 0.39%
- Q1
- 0.00%
- Min
- 0.00%
ASML's Dividend Yield of 0.54% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
TSM
0.92%
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.98%
- Q3
- 0.93%
- Median
- 0.39%
- Q1
- 0.00%
- Min
- 0.00%
TSM's Dividend Yield of 0.92% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
ASML
26.54%
Semiconductors & Semiconductor Equipment Industry
- Max
- 168.19%
- Q3
- 72.81%
- Median
- 24.58%
- Q1
- 0.00%
- Min
- 0.00%
ASML's Dividend Payout Ratio of 26.54% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TSM
27.17%
Semiconductors & Semiconductor Equipment Industry
- Max
- 168.19%
- Q3
- 72.81%
- Median
- 24.58%
- Q1
- 0.00%
- Min
- 0.00%
TSM's Dividend Payout Ratio of 27.17% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ASML | TSM |
|---|---|---|
| Dividend Yield (TTM) | 0.54% | 0.92% |
| Dividend Payout Ratio (TTM) | 26.54% | 27.17% |
Valuation
Price-to-Earnings Ratio (TTM)
ASML
49.08
Semiconductors & Semiconductor Equipment Industry
- Max
- 126.38
- Q3
- 70.45
- Median
- 49.08
- Q1
- 30.76
- Min
- 14.29
ASML's P/E Ratio of 49.08 is within the middle range for the Semiconductors & Semiconductor Equipment 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
29.51
Semiconductors & Semiconductor Equipment Industry
- Max
- 126.38
- Q3
- 70.45
- Median
- 49.08
- Q1
- 30.76
- Min
- 14.29
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, TSM's P/E Ratio of 29.51 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
ASML
14.44
Semiconductors & Semiconductor Equipment Industry
- Max
- 29.76
- Q3
- 14.44
- Median
- 6.75
- Q1
- 3.18
- Min
- 1.15
ASML's P/S Ratio of 14.44 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
TSM
13.31
Semiconductors & Semiconductor Equipment Industry
- Max
- 29.76
- Q3
- 14.44
- Median
- 6.75
- Q1
- 3.18
- Min
- 1.15
TSM's P/S Ratio of 13.31 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
ASML
17.89
Semiconductors & Semiconductor Equipment Industry
- Max
- 15.44
- Q3
- 7.95
- Median
- 3.99
- Q1
- 1.98
- Min
- 0.78
At 17.89, ASML's P/B Ratio is at an extreme premium to the Semiconductors & Semiconductor Equipment industry. This signifies that the market's valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
TSM
7.27
Semiconductors & Semiconductor Equipment Industry
- Max
- 15.44
- Q3
- 7.95
- Median
- 3.99
- Q1
- 1.98
- Min
- 0.78
TSM's P/B Ratio of 7.27 is within the conventional range for the Semiconductors & Semiconductor Equipment 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 | ASML | TSM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 49.08 | 29.51 |
| Price-to-Sales Ratio (TTM) | 14.44 | 13.31 |
| Price-to-Book Ratio (MRQ) | 17.89 | 7.27 |
| Price-to-Free Cash Flow Ratio (TTM) | 41.01 | 50.57 |