COST vs. TSM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at COST and TSM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
COST is a standard domestic listing, while TSM trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
| Symbol | COST | TSM |
|---|---|---|
| Company Name | Costco Wholesale Corporation | Taiwan Semiconductor Manufacturing Company Limited |
| Country | United States | Taiwan |
| GICS Sector | Consumer Staples | Information Technology |
| GICS Industry | Consumer Staples Distribution & Retail | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 407.05 billion USD | 1,470.04 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | July 9, 1986 | October 9, 1997 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of COST 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 | COST | TSM |
|---|---|---|
| 5-Day Price Return | 0.81% | -3.05% |
| 13-Week Price Return | -5.05% | 21.19% |
| 26-Week Price Return | -7.61% | 49.43% |
| 52-Week Price Return | -1.15% | 17.52% |
| Month-to-Date Return | 1.27% | -4.67% |
| Year-to-Date Return | 0.73% | 33.02% |
| 10-Day Avg. Volume | 2.48M | 31.79M |
| 3-Month Avg. Volume | 2.31M | 33.56M |
| 3-Month Volatility | 17.62% | 25.73% |
| Beta | 1.00 | 1.29 |
Profitability
Return on Equity (TTM)
COST
30.47%
Consumer Staples Distribution & Retail Industry
- Max
- 38.03%
- Q3
- 20.64%
- Median
- 13.48%
- Q1
- 6.46%
- Min
- -9.87%
In the upper quartile for the Consumer Staples Distribution & Retail industry, COST’s Return on Equity of 30.47% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
TSM
34.44%
Semiconductors & Semiconductor Equipment Industry
- Max
- 49.05%
- Q3
- 22.19%
- Median
- 7.96%
- Q1
- 0.99%
- Min
- -15.65%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, TSM’s Return on Equity of 34.44% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
COST
2.94%
Consumer Staples Distribution & Retail Industry
- Max
- 6.41%
- Q3
- 3.85%
- Median
- 2.53%
- Q1
- 1.66%
- Min
- -0.70%
COST’s Net Profit Margin of 2.94% is aligned with the median group of its peers in the Consumer Staples Distribution & Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.
TSM
43.70%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 24.47%
- Median
- 11.88%
- Q1
- 0.60%
- Min
- -25.46%
A Net Profit Margin of 43.70% 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)
COST
3.77%
Consumer Staples Distribution & Retail Industry
- Max
- 9.42%
- Q3
- 5.53%
- Median
- 3.90%
- Q1
- 2.53%
- Min
- -0.11%
COST’s Operating Profit Margin of 3.77% is around the midpoint for the Consumer Staples Distribution & Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
TSM
49.48%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.76%
- Median
- 12.14%
- Q1
- 3.29%
- Min
- -32.60%
An Operating Profit Margin of 49.48% 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 | COST | TSM |
|---|---|---|
| Return on Equity (TTM) | 30.47% | 34.44% |
| Return on Assets (TTM) | 10.83% | 22.52% |
| Net Profit Margin (TTM) | 2.94% | 43.70% |
| Operating Profit Margin (TTM) | 3.77% | 49.48% |
| Gross Profit Margin (TTM) | 12.84% | 58.98% |
Financial Strength
Current Ratio (MRQ)
COST
1.03
Consumer Staples Distribution & Retail Industry
- Max
- 1.76
- Q3
- 1.31
- Median
- 0.99
- Q1
- 0.81
- Min
- 0.52
COST’s Current Ratio of 1.03 aligns with the median group of the Consumer Staples Distribution & Retail industry, indicating that its short-term liquidity is in line with its sector peers.
TSM
2.69
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.57
- Q3
- 4.28
- Median
- 2.86
- Q1
- 2.22
- Min
- 1.02
TSM’s Current Ratio of 2.69 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)
COST
0.20
Consumer Staples Distribution & Retail Industry
- Max
- 3.58
- Q3
- 1.67
- Median
- 1.07
- Q1
- 0.30
- Min
- 0.00
Falling into the lower quartile for the Consumer Staples Distribution & Retail industry, COST’s Debt-to-Equity Ratio of 0.20 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
TSM
0.19
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.18
- Q3
- 0.48
- Median
- 0.24
- Q1
- 0.01
- Min
- 0.00
TSM’s Debt-to-Equity Ratio of 0.19 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)
COST
91.27
Consumer Staples Distribution & Retail Industry
- Max
- 24.36
- Q3
- 13.75
- Median
- 5.55
- Q1
- 2.86
- Min
- -5.51
With an Interest Coverage Ratio of 91.27, COST demonstrates a superior capacity to service its debt, placing it well above the typical range for the Consumer Staples Distribution & Retail industry. This stems from either robust earnings or a conservative debt load.
TSM
8.32
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.21
- Median
- 22.37
- Q1
- 6.43
- Min
- -7.80
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 | COST | TSM |
|---|---|---|
| Current Ratio (MRQ) | 1.03 | 2.69 |
| Quick Ratio (MRQ) | 0.55 | 2.47 |
| Debt-to-Equity Ratio (MRQ) | 0.20 | 0.19 |
| Interest Coverage Ratio (TTM) | 91.27 | 8.32 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
COST
0.53%
Consumer Staples Distribution & Retail Industry
- Max
- 6.30%
- Q3
- 3.28%
- Median
- 1.64%
- Q1
- 0.00%
- Min
- 0.00%
COST’s Dividend Yield of 0.53% is consistent with its peers in the Consumer Staples Distribution & Retail industry, providing a dividend return that is standard for its sector.
TSM
1.19%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.58%
- Q3
- 1.59%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
TSM’s Dividend Yield of 1.19% 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)
COST
34.59%
Consumer Staples Distribution & Retail Industry
- Max
- 188.48%
- Q3
- 100.66%
- Median
- 57.10%
- Q1
- 29.06%
- Min
- 0.00%
COST’s Dividend Payout Ratio of 34.59% is within the typical range for the Consumer Staples Distribution & Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TSM
27.78%
Semiconductors & Semiconductor Equipment Industry
- Max
- 211.90%
- Q3
- 88.01%
- Median
- 25.84%
- Q1
- 0.00%
- Min
- 0.00%
TSM’s Dividend Payout Ratio of 27.78% 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 | COST | TSM |
|---|---|---|
| Dividend Yield (TTM) | 0.53% | 1.19% |
| Dividend Payout Ratio (TTM) | 34.59% | 27.78% |
Valuation
Price-to-Earnings Ratio (TTM)
COST
50.51
Consumer Staples Distribution & Retail Industry
- Max
- 50.51
- Q3
- 32.01
- Median
- 21.81
- Q1
- 16.98
- Min
- 4.41
A P/E Ratio of 50.51 places COST in the upper quartile for the Consumer Staples Distribution & Retail industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
TSM
23.37
Semiconductors & Semiconductor Equipment Industry
- Max
- 95.58
- Q3
- 58.67
- Median
- 34.77
- Q1
- 25.45
- Min
- 12.63
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, TSM’s P/E Ratio of 23.37 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
COST
1.49
Consumer Staples Distribution & Retail Industry
- Max
- 1.80
- Q3
- 0.96
- Median
- 0.58
- Q1
- 0.38
- Min
- 0.06
COST’s P/S Ratio of 1.49 is in the upper echelon for the Consumer Staples Distribution & Retail 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
10.21
Semiconductors & Semiconductor Equipment Industry
- Max
- 18.34
- Q3
- 10.38
- Median
- 5.38
- Q1
- 2.49
- Min
- 0.32
TSM’s P/S Ratio of 10.21 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)
COST
14.34
Consumer Staples Distribution & Retail Industry
- Max
- 8.68
- Q3
- 4.65
- Median
- 2.72
- Q1
- 1.94
- Min
- 0.46
At 14.34, COST’s P/B Ratio is at an extreme premium to the Consumer Staples Distribution & Retail 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
6.77
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.22
- Q3
- 8.33
- Median
- 4.39
- Q1
- 1.79
- Min
- 0.30
TSM’s P/B Ratio of 6.77 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 | COST | TSM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 50.51 | 23.37 |
| Price-to-Sales Ratio (TTM) | 1.49 | 10.21 |
| Price-to-Book Ratio (MRQ) | 14.34 | 6.77 |
| Price-to-Free Cash Flow Ratio (TTM) | 52.19 | 41.71 |