COST vs. TSM: Costco Wholesale vs. Taiwan Semiconductor Mfg Stock Comparison

November 11, 2026

How do Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Costco Wholesale (COST) is classified in the Consumer Staples sector (Consumer Staples Distribution & Retail), whereas Taiwan Semiconductor Mfg (TSM) belongs to Information Technology (Semiconductors & Semiconductor Equipment) — their GICS classifications point to very different parts of the market.

Costco Wholesale (COST) trades as ordinary local shares, while Taiwan Semiconductor Mfg (TSM) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM)
Profile Item	COST	TSM
Name	Costco Wholesale Corp	Taiwan Semiconductor Manufacturing Company Ltd. ADR
Country/Region	United States	Taiwan
GICS Sector	Consumer Staples	Information Technology
GICS Industry Group	Consumer Staples Distribution & Retail	Semiconductors & Semiconductor Equipment
GICS Industry	Consumer Staples Distribution & Retail	Semiconductors & Semiconductor Equipment
GICS Sub-Industry	Consumer Staples Merchandise Retail	Semiconductors
Market Capitalization	466.86 billion USD	1,947.21 billion USD
Currency	USD	USD
Exchange	Nasdaq	NYSE
Listing Date	July 9, 1986	October 9, 1997
Security Type	Common Stock	ADR

Price Performance

Cumulative Growth

COST

TSM

GSPC

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM)
Metric	COST	TSM
Total Return (1Y)	14.87%	37.26%
Total Return (3Y, Annualized)	24.84%	64.12%
Total Return (5Y, Annualized)	16.92%	28.19%

Risk Profile

Drawdown History

COST

TSM

GSPC

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM)
Metric	COST	TSM
Volatility (1Y, Annualized)	20.30%	41.69%
Beta (5Y)	0.84	1.45
Max Drawdown (5Y)	-31.40%	-56.47%
Avg. Volume (3M)	2.15M	11.20M

Risk-Adjusted Performance

Risk-Return Positioning

COST and TSM are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM)
Metric	COST	TSM
Sharpe Ratio (1Y)	0.52	0.79
Sortino Ratio (1Y)	0.77	1.15

Profitability

ROE (TTM)

Both Costco Wholesale (COST) at 28.40% and Taiwan Semiconductor Mfg (TSM) at 41.86% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

COST

Consumer Staples Distribution & Retail industry group

28.40%

Max: 33.48%
COST: 28.40%
Q3: 22.31%
Median: 15.57%
Q1: 7.66%
Min: -2.27%

TSM

Semiconductors & Semiconductor Equipment industry group

41.86%

Max: 52.82%
TSM: 41.86%
Q3: 22.26%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their ROE against their respective Consumer Staples Distribution & Retail and Semiconductors & Semiconductor Equipment industry group benchmarks.

Net Margin (TTM)

Taiwan Semiconductor Mfg (TSM) at 51.12% retains a top-quartile share of revenue as profit, ahead of Costco Wholesale (COST) at 3.04%, which keeps about the industry-typical share.

COST

Consumer Staples Distribution & Retail industry group

3.04%

Max: 5.45%
Q3: 3.42%
COST: 3.04%
Median: 2.44%
Q1: 1.86%
Min: -0.06%

TSM

Semiconductors & Semiconductor Equipment industry group

51.12%

Max: 63.80%
TSM: 51.12%
Q3: 28.36%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their net margin against their respective Consumer Staples Distribution & Retail and Semiconductors & Semiconductor Equipment industry group benchmarks.

Operating Margin (TTM)

Taiwan Semiconductor Mfg (TSM) at 58.66% operates in the top operating margin quartile, ahead of Costco Wholesale (COST) at 3.79%, which runs around its industry’s norm.

COST

Consumer Staples Distribution & Retail industry group

3.79%

Max: 6.81%
Q3: 5.49%
Median: 3.84%
COST: 3.79%
Q1: 2.00%
Min: 0.97%

TSM

Semiconductors & Semiconductor Equipment industry group

58.66%

TSM: 58.66%
Max: 58.66%
Q3: 30.23%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their operating margin against their respective Consumer Staples Distribution & Retail and Semiconductors & Semiconductor Equipment industry group benchmarks.

Profitability Metrics

Profitability metrics for Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM)
Metric	COST	TSM
ROE (TTM)	28.40%	41.86%
ROA (TTM)	8.66%	20.58%
Net Margin (TTM)	3.04%	51.12%
Operating Margin (TTM)	3.79%	58.66%
Gross Margin (TTM)	12.77%	65.85%

Growth

Revenue Growth

Taiwan Semiconductor Mfg (TSM) at 31.61% sits in the top revenue growth quartile, while Costco Wholesale (COST) at 10.14% is closer to the peer norm — faster top-line expansion for TSM.

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Taiwan Semiconductor Mfg (TSM) reports EPS growth of 46.41%, ranked against its industry; Costco Wholesale (COST) has no EPS growth figure this period.

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM)
Metric	COST	TSM
Revenue Growth (YoY)	10.14%	31.61%
Revenue Growth (3Y CAGR)	7.76%	18.94%
EPS Growth (YoY)	--	46.41%
EPS Growth (3Y CAGR)	--	19.12%

Financial Strength

Current Ratio (MRQ)

Both Costco Wholesale (COST) at 1.06 and Taiwan Semiconductor Mfg (TSM) at 2.51 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

COST

Consumer Staples Distribution & Retail industry group

1.06

Max: 2.04
Q3: 1.45
Median: 1.17
COST: 1.06
Q1: 1.00
Min: 0.69

TSM

Semiconductors & Semiconductor Equipment industry group

2.51

Max: 10.33
Q3: 5.62
Median: 3.33
TSM: 2.51
Q1: 2.35
Min: 1.03

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their current ratio against their respective Consumer Staples Distribution & Retail and Semiconductors & Semiconductor Equipment industry group benchmarks.

Debt / Equity (MRQ)

Costco Wholesale (COST) at 0.28 keeps leverage in the lower industry quartile, while Taiwan Semiconductor Mfg (TSM) at 0.12 runs a more typical debt-to-equity mix.

COST

Consumer Staples Distribution & Retail industry group

0.28

Max: 2.59
Q3: 1.83
Median: 1.24
Q1: 0.63
COST: 0.28
Min: 0.01

TSM

Semiconductors & Semiconductor Equipment industry group

0.12

Max: 1.46
Q3: 0.65
Median: 0.27
TSM: 0.12
Q1: 0.04
Min: 0.00

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their debt-to-equity ratio against their respective Consumer Staples Distribution & Retail and Semiconductors & Semiconductor Equipment industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM)
Metric	COST	TSM
Current Ratio (MRQ)	1.06	2.51
Debt / Equity (MRQ)	0.28	0.12
Net Debt / EBITDA	-0.78	-0.89

Dividends

Dividend Yield (TTM)

Costco Wholesale (COST) at 0.52% pays an industry-typical yield; Taiwan Semiconductor Mfg (TSM) at 1.70% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

COST

Consumer Staples Distribution & Retail industry group

0.52%

Max: 2.90%
Q3: 1.72%
COST: 0.52%
Median: 0.43%
Q1: 0.00%
Min: 0.00%

TSM

Semiconductors & Semiconductor Equipment industry group

1.70%

TSM: 1.70%
Max: 1.37%
Q3: 0.65%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their dividend yield against their respective Consumer Staples Distribution & Retail and Semiconductors & Semiconductor Equipment industry group benchmarks.

Dividend Payout Ratio (TTM)

Costco Wholesale (COST) at 26.69% pays out a band-typical share of earnings, while Taiwan Semiconductor Mfg (TSM) at 24.46% distributes more than its industry norm — less retained, thinner cover.

COST

Consumer Staples Distribution & Retail industry group

26.69%

Max: 57.98%
Q3: 30.05%
COST: 26.69%
Median: 11.72%
Q1: 0.00%
Min: 0.00%

TSM

Semiconductors & Semiconductor Equipment industry group

24.46%

Max: 49.64%
TSM: 24.46%
Q3: 21.71%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their payout ratio against their respective Consumer Staples Distribution & Retail and Semiconductors & Semiconductor Equipment industry group benchmarks.

Dividend Metrics

Dividend metrics for Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM)
Metric	COST	TSM
Dividend Yield (TTM)	0.52%	1.70%
Dividend Payout Ratio (TTM)	26.69%	24.46%

Valuation

P/E Ratio (TTM)

Taiwan Semiconductor Mfg (TSM) at 24.33 is near its industry’s usual P/E ratio, while Costco Wholesale (COST) at 50.75 sits in the richer quartile — COST needs stronger growth or earnings quality to justify the premium.

COST

Consumer Staples Distribution & Retail industry group

50.75

COST: 50.75
Max: 50.75
Q3: 33.64
Median: 22.19
Q1: 16.09
Min: 9.28

TSM

Semiconductors & Semiconductor Equipment industry group

24.33

Max: 110.34
Q3: 66.81
Median: 37.02
TSM: 24.33
Q1: 23.96
Min: 8.12

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their P/E ratio against their respective Consumer Staples Distribution & Retail and Semiconductors & Semiconductor Equipment industry group benchmarks.

P/S Ratio (TTM)

Taiwan Semiconductor Mfg (TSM) at 0.39 looks cheap on sales in the lower P/S ratio quartile, while Costco Wholesale (COST) at 1.54 looks rich in the upper quartile — a clear gap in price per dollar of revenue.

COST

Consumer Staples Distribution & Retail industry group

1.54

COST: 1.54
Max: 1.54
Q3: 0.81
Median: 0.47
Q1: 0.26
Min: 0.02

TSM

Semiconductors & Semiconductor Equipment industry group

0.39

Max: 21.42
Q3: 12.27
Median: 5.76
Q1: 2.73
TSM: 0.39
Min: 0.00

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their P/S ratio against their respective Consumer Staples Distribution & Retail and Semiconductors & Semiconductor Equipment industry group benchmarks.

P/B Ratio (MRQ)

Measured against book value, both Costco Wholesale (COST) at 13.04 and Taiwan Semiconductor Mfg (TSM) at 71.65 look expensive — each P/B ratio sits above its industry’s benchmark range.

COST

Consumer Staples Distribution & Retail industry group

13.04

COST: 13.04
Max: 10.15
Q3: 6.27
Median: 3.70
Q1: 1.85
Min: 0.93

TSM

Semiconductors & Semiconductor Equipment industry group

71.65

TSM: 71.65
Max: 14.06
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

Costco Wholesale (COST) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their P/B ratio against their respective Consumer Staples Distribution & Retail and Semiconductors & Semiconductor Equipment industry group benchmarks.

Valuation Metrics

Valuation metrics for Costco Wholesale (COST) and Taiwan Semiconductor Mfg (TSM)
Metric	COST	TSM
P/E Ratio (TTM)	50.75	24.33
P/S Ratio (TTM)	1.54	0.39
P/B Ratio (MRQ)	13.04	71.65
Free Cash Flow Yield (TTM)	1.45%	61.78%