KLAC vs. TSM: KLA vs. Taiwan Semiconductor Mfg Stock Comparison

November 11, 2026

How do KLA (KLAC) 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

KLA (KLAC) and Taiwan Semiconductor Mfg (TSM) both belong to the Semiconductors & Semiconductor Equipment industry, though KLAC is classified under Semiconductor Materials & Equipment while TSM falls under Semiconductors.

KLA (KLAC) 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 KLA (KLAC) and Taiwan Semiconductor Mfg (TSM)
Profile Item	KLAC	TSM
Name	KLA Corporation	Taiwan Semiconductor Manufacturing Company Ltd. ADR
Country/Region	United States	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	180.45 billion USD	1,947.21 billion USD
Currency	USD	USD
Exchange	Nasdaq	NYSE
Listing Date	October 8, 1980	October 9, 1997
Security Type	Common Stock	ADR

Price Performance

Cumulative Growth

KLAC

TSM

GSPC

KLA (KLAC) 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 KLA (KLAC) and Taiwan Semiconductor Mfg (TSM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for KLA (KLAC) 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 KLA (KLAC) and Taiwan Semiconductor Mfg (TSM)
Metric	KLAC	TSM
Total Return (1Y)	26.92%	37.26%
Total Return (3Y, Annualized)	44.97%	64.12%
Total Return (5Y, Annualized)	30.55%	28.19%

Risk Profile

Drawdown History

KLAC

TSM

GSPC

KLA (KLAC) 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 KLA (KLAC) 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 KLA (KLAC) and Taiwan Semiconductor Mfg (TSM)
Metric	KLAC	TSM
Volatility (1Y, Annualized)	63.92%	41.69%
Beta (5Y)	1.51	1.45
Max Drawdown (5Y)	-56.93%	-56.47%
Avg. Volume (3M)	10.66M	11.20M

Risk-Adjusted Performance

Risk-Return Positioning

KLAC and TSM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for KLA (KLAC) and Taiwan Semiconductor Mfg (TSM)
Metric	KLAC	TSM
Sharpe Ratio (1Y)	0.35	0.79
Sortino Ratio (1Y)	0.50	1.15

Profitability

ROE (TTM)

Both companies show strong equity returns, but KLA (KLAC) at 91.38% is the standout with ROE above its industry range; Taiwan Semiconductor Mfg (TSM) at 41.86% also sits in the top quartile.

KLAC

Semiconductors & Semiconductor Equipment industry group

91.38%

KLAC: 91.38%
Max: 52.82%
Q3: 22.26%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

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%

KLA (KLAC) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their ROE against the Semiconductors & Semiconductor Equipment industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both KLA (KLAC) at 36.25% and Taiwan Semiconductor Mfg (TSM) at 51.12% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

KLAC

Semiconductors & Semiconductor Equipment industry group

36.25%

Max: 63.80%
KLAC: 36.25%
Q3: 28.36%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

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%

KLA (KLAC) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their net margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Operating Margin (TTM)

Both KLA (KLAC) at 45.01% and Taiwan Semiconductor Mfg (TSM) at 58.66% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

KLAC

Semiconductors & Semiconductor Equipment industry group

45.01%

Max: 58.66%
KLAC: 45.01%
Q3: 30.23%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

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%

KLA (KLAC) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their operating margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for KLA (KLAC) and Taiwan Semiconductor Mfg (TSM)
Metric	KLAC	TSM
ROE (TTM)	91.38%	41.86%
ROA (TTM)	22.27%	20.58%
Net Margin (TTM)	36.25%	51.12%
Operating Margin (TTM)	45.01%	58.66%
Gross Margin (TTM)	61.47%	65.85%

Growth

Revenue Growth

Taiwan Semiconductor Mfg (TSM) at 31.61% sits in the top revenue growth quartile, while KLA (KLAC) at 11.71% is closer to the peer norm — faster top-line expansion for TSM.

KLA (KLAC) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Taiwan Semiconductor Mfg (TSM) at 46.41% sits in the top EPS growth quartile, while KLA (KLAC) at 20.51% is closer to the peer norm — faster per-share earnings growth for TSM.

KLA (KLAC) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for KLA (KLAC) and Taiwan Semiconductor Mfg (TSM)
Metric	KLAC	TSM
Revenue Growth (YoY)	11.71%	31.61%
Revenue Growth (3Y CAGR)	8.96%	18.94%
EPS Growth (YoY)	20.51%	46.41%
EPS Growth (3Y CAGR)	14.87%	19.12%

Financial Strength

Current Ratio (MRQ)

Both KLA (KLAC) at 2.76 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.

KLAC

Semiconductors & Semiconductor Equipment industry group

2.76

Max: 10.33
Q3: 5.62
Median: 3.33
KLAC: 2.76
Q1: 2.35
Min: 1.03

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

KLA (KLAC) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their current ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Debt / Equity (MRQ)

Taiwan Semiconductor Mfg (TSM) at 0.12 carries an industry-typical debt-to-equity mix, while KLA (KLAC) at 0.92 uses more debt funding than most peers.

KLAC

Semiconductors & Semiconductor Equipment industry group

0.92

Max: 1.46
KLAC: 0.92
Q3: 0.65
Median: 0.27
Q1: 0.04
Min: 0.00

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

KLA (KLAC) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their debt-to-equity ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for KLA (KLAC) and Taiwan Semiconductor Mfg (TSM)
Metric	KLAC	TSM
Current Ratio (MRQ)	2.76	2.51
Debt / Equity (MRQ)	0.92	0.12
Net Debt / EBITDA	0.19	-0.89

Dividends

Dividend Yield (TTM)

KLA (KLAC) at 0.65% 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.

KLAC

Semiconductors & Semiconductor Equipment industry group

0.65%

Max: 1.37%
Q3: 0.65%
KLAC: 0.65%
Median: 0.00%
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%

KLA (KLAC) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their dividend yield against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Payout Ratio (TTM)

KLA (KLAC) at 21.03% 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.

KLAC

Semiconductors & Semiconductor Equipment industry group

21.03%

Max: 49.64%
Q3: 21.71%
KLAC: 21.03%
Median: 0.00%
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%

KLA (KLAC) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their payout ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for KLA (KLAC) and Taiwan Semiconductor Mfg (TSM)
Metric	KLAC	TSM
Dividend Yield (TTM)	0.65%	1.70%
Dividend Payout Ratio (TTM)	21.03%	24.46%

Valuation

P/E Ratio (TTM)

Both KLA (KLAC) at 34.71 and Taiwan Semiconductor Mfg (TSM) at 24.33 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

KLAC

Semiconductors & Semiconductor Equipment industry group

34.71

Max: 110.34
Q3: 66.81
Median: 37.02
KLAC: 34.71
Q1: 23.96
Min: 8.12

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

KLA (KLAC) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their P/E ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/S Ratio (TTM)

Taiwan Semiconductor Mfg (TSM) at 0.39 looks cheap on sales in the lower P/S ratio quartile, while KLA (KLAC) at 12.44 looks rich in the upper quartile — a clear gap in price per dollar of revenue.

KLAC

Semiconductors & Semiconductor Equipment industry group

12.44

Max: 21.42
KLAC: 12.44
Q3: 12.27
Median: 5.76
Q1: 2.73
Min: 0.00

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

KLA (KLAC) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their P/S ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/B Ratio (MRQ)

Measured against book value, both KLA (KLAC) at 27.67 and Taiwan Semiconductor Mfg (TSM) at 71.65 look expensive — each P/B ratio sits above its industry’s benchmark range.

KLAC

Semiconductors & Semiconductor Equipment industry group

27.67

KLAC: 27.67
Max: 14.06
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

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

KLA (KLAC) vs. Taiwan Semiconductor Mfg (TSM): A comparison of their P/B ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Valuation Metrics

Valuation metrics for KLA (KLAC) and Taiwan Semiconductor Mfg (TSM)
Metric	KLAC	TSM
P/E Ratio (TTM)	34.71	24.33
P/S Ratio (TTM)	12.44	0.39
P/B Ratio (MRQ)	27.67	71.65
Free Cash Flow Yield (TTM)	1.56%	61.78%