CTSH vs. TSM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CTSH and TSM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
CTSH 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 | CTSH | TSM |
|---|---|---|
| Company Name | Cognizant Technology Solutions Corporation | Taiwan Semiconductor Manufacturing Company Limited |
| Country | United States | Taiwan |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 33.04 billion USD | 1,515.45 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 19, 1998 | October 9, 1997 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of CTSH 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 | CTSH | TSM |
|---|---|---|
| 5-Day Price Return | 0.86% | 7.69% |
| 13-Week Price Return | -16.45% | 29.03% |
| 26-Week Price Return | -11.56% | 53.85% |
| 52-Week Price Return | -11.86% | 17.52% |
| Month-to-Date Return | 0.88% | 7.28% |
| Year-to-Date Return | -12.02% | 30.23% |
| 10-Day Avg. Volume | 4.11M | 36.99M |
| 3-Month Avg. Volume | 3.95M | 33.76M |
| 3-Month Volatility | 22.15% | 24.86% |
| Beta | 0.98 | 1.33 |
Profitability
Return on Equity (TTM)
CTSH
16.50%
IT Services Industry
- Max
- 32.78%
- Q3
- 19.28%
- Median
- 13.86%
- Q1
- 5.50%
- Min
- -10.00%
CTSH’s Return on Equity of 16.50% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
TSM
33.51%
Semiconductors & Semiconductor Equipment Industry
- Max
- 47.13%
- Q3
- 23.50%
- Median
- 9.94%
- Q1
- 0.86%
- Min
- -20.69%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, TSM’s Return on Equity of 33.51% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
CTSH
11.89%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
A Net Profit Margin of 11.89% places CTSH in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.
TSM
42.92%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 23.88%
- Median
- 10.17%
- Q1
- 1.21%
- Min
- -32.15%
A Net Profit Margin of 42.92% 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)
CTSH
15.42%
IT Services Industry
- Max
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
An Operating Profit Margin of 15.42% places CTSH in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
TSM
48.71%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.54%
- Median
- 11.18%
- Q1
- 3.31%
- Min
- -28.36%
An Operating Profit Margin of 48.71% 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 | CTSH | TSM |
|---|---|---|
| Return on Equity (TTM) | 16.50% | 33.51% |
| Return on Assets (TTM) | 12.14% | 21.63% |
| Net Profit Margin (TTM) | 11.89% | 42.92% |
| Operating Profit Margin (TTM) | 15.42% | 48.71% |
| Gross Profit Margin (TTM) | 34.18% | 58.58% |
Financial Strength
Current Ratio (MRQ)
CTSH
2.41
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
CTSH’s Current Ratio of 2.41 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
TSM
2.37
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.58
- Q3
- 4.24
- Median
- 2.73
- Q1
- 2.13
- Min
- 1.02
TSM’s Current Ratio of 2.37 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)
CTSH
0.04
IT Services Industry
- Max
- 3.11
- Q3
- 1.55
- Median
- 0.55
- Q1
- 0.17
- Min
- 0.00
Falling into the lower quartile for the IT Services industry, CTSH’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
TSM
0.21
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.48
- Median
- 0.25
- Q1
- 0.01
- Min
- 0.00
TSM’s Debt-to-Equity Ratio of 0.21 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)
CTSH
100.81
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 0.77
- Min
- -28.15
CTSH’s Interest Coverage Ratio of 100.81 is in the upper quartile for the IT Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
TSM
8.32
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 74.71
- Median
- 26.06
- 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 | CTSH | TSM |
|---|---|---|
| Current Ratio (MRQ) | 2.41 | 2.37 |
| Quick Ratio (MRQ) | 2.41 | 2.15 |
| Debt-to-Equity Ratio (MRQ) | 0.04 | 0.21 |
| Interest Coverage Ratio (TTM) | 100.81 | 8.32 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CTSH
1.84%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.84%, CTSH offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.
TSM
1.17%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.72%
- Q3
- 1.51%
- Median
- 0.69%
- Q1
- 0.00%
- Min
- 0.00%
TSM’s Dividend Yield of 1.17% 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)
CTSH
24.92%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Payout Ratio of 24.92% is within the typical range for the IT Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TSM
28.42%
Semiconductors & Semiconductor Equipment Industry
- Max
- 205.27%
- Q3
- 88.01%
- Median
- 27.13%
- Q1
- 0.00%
- Min
- 0.00%
TSM’s Dividend Payout Ratio of 28.42% 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 | CTSH | TSM |
|---|---|---|
| Dividend Yield (TTM) | 1.84% | 1.17% |
| Dividend Payout Ratio (TTM) | 24.92% | 28.42% |
Valuation
Price-to-Earnings Ratio (TTM)
CTSH
13.53
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
In the lower quartile for the IT Services industry, CTSH’s P/E Ratio of 13.53 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
TSM
24.25
Semiconductors & Semiconductor Equipment Industry
- Max
- 106.30
- Q3
- 61.93
- Median
- 38.96
- Q1
- 23.71
- Min
- 13.06
TSM’s P/E Ratio of 24.25 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.
Price-to-Sales Ratio (TTM)
CTSH
1.61
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
CTSH’s P/S Ratio of 1.61 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
TSM
10.41
Semiconductors & Semiconductor Equipment Industry
- Max
- 19.99
- Q3
- 10.21
- Median
- 5.23
- Q1
- 2.88
- Min
- 1.13
TSM’s P/S Ratio of 10.41 is in the upper echelon for the Semiconductors & Semiconductor Equipment 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.
Price-to-Book Ratio (MRQ)
CTSH
2.52
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
CTSH’s P/B Ratio of 2.52 is within the conventional range for the IT Services 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.
TSM
6.00
Semiconductors & Semiconductor Equipment Industry
- Max
- 14.22
- Q3
- 6.94
- Median
- 4.29
- Q1
- 1.99
- Min
- 0.67
TSM’s P/B Ratio of 6.00 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 | CTSH | TSM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 13.53 | 24.25 |
| Price-to-Sales Ratio (TTM) | 1.61 | 10.41 |
| Price-to-Book Ratio (MRQ) | 2.52 | 6.00 |
| Price-to-Free Cash Flow Ratio (TTM) | 14.44 | 37.90 |