HSBC vs. TSM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at HSBC and TSM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
Both HSBC and TSM are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.
| Symbol | HSBC | TSM |
|---|---|---|
| Company Name | HSBC Holdings plc | Taiwan Semiconductor Manufacturing Company Limited |
| Country | United Kingdom | Taiwan |
| GICS Sector | Financials | Information Technology |
| GICS Industry | Banks | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 225.78 billion USD | 1,252.23 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | July 16, 1999 | October 9, 1997 |
| Security Type | ADR | ADR |
Historical Performance
This chart compares the performance of HSBC 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 | HSBC | TSM |
|---|---|---|
| 5-Day Price Return | 2.19% | 1.69% |
| 13-Week Price Return | 8.97% | 20.12% |
| 26-Week Price Return | 12.58% | 7.62% |
| 52-Week Price Return | 46.92% | 17.52% |
| Month-to-Date Return | 3.46% | 3.45% |
| Year-to-Date Return | 21.57% | 11.63% |
| 10-Day Avg. Volume | 15.98M | 35.08M |
| 3-Month Avg. Volume | 19.78M | 37.66M |
| 3-Month Volatility | 16.73% | 25.25% |
| Beta | 1.56 | 1.26 |
Profitability
Return on Equity (TTM)
HSBC
13.86%
Banks Industry
- Max
- 26.37%
- Q3
- 15.92%
- Median
- 12.25%
- Q1
- 8.69%
- Min
- 0.15%
HSBC’s Return on Equity of 13.86% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.
TSM
33.51%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.74%
- Q3
- 23.49%
- Median
- 11.60%
- Q1
- 3.23%
- 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)
HSBC
34.16%
Banks Industry
- Max
- 54.20%
- Q3
- 35.70%
- Median
- 28.97%
- Q1
- 22.53%
- Min
- 6.98%
HSBC’s Net Profit Margin of 34.16% is aligned with the median group of its peers in the Banks industry. This indicates its ability to convert revenue into profit is typical for the sector.
TSM
42.92%
Semiconductors & Semiconductor Equipment Industry
- Max
- 44.17%
- Q3
- 22.38%
- Median
- 11.95%
- Q1
- 3.21%
- Min
- -25.16%
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)
HSBC
40.44%
Banks Industry
- Max
- 63.35%
- Q3
- 44.59%
- Median
- 37.24%
- Q1
- 28.25%
- Min
- 13.37%
HSBC’s Operating Profit Margin of 40.44% is around the midpoint for the Banks industry, indicating that its efficiency in managing core business operations is typical for the sector.
TSM
48.71%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.03%
- Q3
- 27.84%
- Median
- 12.45%
- Q1
- 5.15%
- Min
- -28.61%
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 | HSBC | TSM |
|---|---|---|
| Return on Equity (TTM) | 13.86% | 33.51% |
| Return on Assets (TTM) | 0.85% | 21.63% |
| Net Profit Margin (TTM) | 34.16% | 42.92% |
| Operating Profit Margin (TTM) | 40.44% | 48.71% |
| Gross Profit Margin (TTM) | -- | 58.58% |
Financial Strength
Current Ratio (MRQ)
HSBC
--
Banks Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
TSM
2.37
Semiconductors & Semiconductor Equipment Industry
- Max
- 8.42
- Q3
- 4.70
- Median
- 2.75
- Q1
- 2.07
- Min
- 1.04
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)
HSBC
1.91
Banks Industry
- Max
- 4.75
- Q3
- 2.62
- Median
- 1.02
- Q1
- 0.39
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.
TSM
0.21
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.45
- Median
- 0.22
- 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)
HSBC
--
Banks Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.
TSM
8.32
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.10
- Median
- 27.22
- Q1
- 7.28
- Min
- -4.26
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 | HSBC | TSM |
|---|---|---|
| Current Ratio (MRQ) | -- | 2.37 |
| Quick Ratio (MRQ) | -- | 2.15 |
| Debt-to-Equity Ratio (MRQ) | 1.91 | 0.21 |
| Interest Coverage Ratio (TTM) | -- | 8.32 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
HSBC
6.03%
Banks Industry
- Max
- 10.27%
- Q3
- 5.83%
- Median
- 3.81%
- Q1
- 2.50%
- Min
- 0.00%
With a Dividend Yield of 6.03%, HSBC offers a more attractive income stream than most of its peers in the Banks industry, signaling a strong commitment to shareholder returns.
TSM
1.36%
Semiconductors & Semiconductor Equipment Industry
- Max
- 4.16%
- Q3
- 1.78%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
TSM’s Dividend Yield of 1.36% 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)
HSBC
71.79%
Banks Industry
- Max
- 147.07%
- Q3
- 80.55%
- Median
- 54.40%
- Q1
- 35.71%
- Min
- 0.00%
HSBC’s Dividend Payout Ratio of 71.79% is within the typical range for the Banks industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TSM
28.42%
Semiconductors & Semiconductor Equipment Industry
- Max
- 196.12%
- Q3
- 87.72%
- Median
- 26.57%
- 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 | HSBC | TSM |
|---|---|---|
| Dividend Yield (TTM) | 6.03% | 1.36% |
| Dividend Payout Ratio (TTM) | 71.79% | 28.42% |
Valuation
Price-to-Earnings Ratio (TTM)
HSBC
8.58
Banks Industry
- Max
- 20.05
- Q3
- 12.65
- Median
- 10.21
- Q1
- 7.54
- Min
- 2.74
HSBC’s P/E Ratio of 8.58 is within the middle range for the Banks 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
20.96
Semiconductors & Semiconductor Equipment Industry
- Max
- 109.37
- Q3
- 57.11
- Median
- 28.95
- Q1
- 22.13
- Min
- 11.14
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, TSM’s P/E Ratio of 20.96 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
HSBC
1.74
Banks Industry
- Max
- 5.06
- Q3
- 2.98
- Median
- 2.24
- Q1
- 1.59
- Min
- 0.45
The P/S Ratio is often not a primary valuation tool in the Banks industry.
TSM
9.00
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.09
- Q3
- 10.10
- Median
- 4.82
- Q1
- 2.60
- Min
- 0.93
TSM’s P/S Ratio of 9.00 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)
HSBC
1.09
Banks Industry
- Max
- 2.18
- Q3
- 1.36
- Median
- 1.09
- Q1
- 0.81
- Min
- 0.20
HSBC’s P/B Ratio of 1.09 is within the conventional range for the Banks 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
- 13.56
- Q3
- 6.75
- Median
- 3.68
- Q1
- 1.89
- Min
- 0.60
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 | HSBC | TSM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 8.58 | 20.96 |
| Price-to-Sales Ratio (TTM) | 1.74 | 9.00 |
| Price-to-Book Ratio (MRQ) | 1.09 | 6.00 |
| Price-to-Free Cash Flow Ratio (TTM) | 4.73 | 32.76 |