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Microsoft (MSFT) vs. TSMC (TSM)

This page compares Microsoft (MSFT) with TSMC (TSM) using historical performance, profitability, financial strength, growth, dividend, and valuation metrics.

Company Profile

Microsoft (MSFT) and TSMC (TSM) share the Information Technology sector but sit in different industry groups — MSFT in Software & Services and TSM in Semiconductors & Semiconductor Equipment.

Microsoft (MSFT) trades as a standard ordinary-equity line, while TSMC (TSM) is an ADR tied to a foreign-share or depositary-receipt structure — compare with FX exposure, program fees, and dividend-withholding-tax differences in mind.

SymbolMSFTTSM
Company NameMicrosoft CorporationTaiwan Semiconductor Manufacturing Company Limited
Country/RegionUnited StatesTaiwan
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSemiconductors & Semiconductor Equipment
GICS IndustrySoftwareSemiconductors & Semiconductor Equipment
GICS Sub-IndustrySystems SoftwareSemiconductors
Market Capitalization3,113.18 billion USD2,111.67 billion USD
CurrencyUSDUSD
ExchangeNasdaqGSNYSE
Listing DateMarch 13, 1986October 9, 1997
Security TypeCommon StockADR

Historical Performance

MSFT
TSM
Loading price history…
Microsoft (MSFT) vs. TSMC (TSM): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Historical Performance at a Glance

SymbolMSFTTSM
5-Day Price Return-0.67%-3.74%
13-Week Price Return5.18%22.41%
26-Week Price Return-16.73%44.70%
52-Week Price Return-7.40%17.52%
Month-to-Date Return2.77%2.34%
Year-to-Date Return-13.34%40.97%
10-Day Avg. Volume34.00M40.33M
3-Month Avg. Volume36.41M42.75M
3-Month Volatility27.08%37.54%
Beta1.091.18

Profitability

Return on Equity (TTM)

Both Microsoft (MSFT) at 33.13% and TSMC (TSM) at 36.93% rank in the top quartile for Return on Equity (TTM) among industry peers, indicating strong returns on shareholders’ equity.

MSFT

Software & Services industry group

33.13%

Max
62.31%
Q3
20.29%
Median
7.31%
Q1
-8.50%
Min
-50.67%

TSM

Semiconductors & Semiconductor Equipment industry group

36.93%

Max
44.68%
Q3
17.87%
Median
7.82%
Q1
-3.34%
Min
-32.99%
Microsoft (MSFT) vs. TSMC (TSM): A comparison of their Return on Equity (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Net Profit Margin (TTM)

Both Microsoft (MSFT) at 39.34% and TSMC (TSM) at 47.00% rank in the top quartile for Net Profit Margin (TTM) among industry peers, indicating both companies convert revenue into net income more strongly than typical competitors.

MSFT

Software & Services industry group

39.34%

Max
44.20%
Q3
16.48%
Median
8.18%
Q1
-3.67%
Min
-28.43%

TSM

Semiconductors & Semiconductor Equipment industry group

47.00%

Max
47.00%
Q3
21.67%
Median
8.14%
Q1
-5.59%
Min
-44.72%
Microsoft (MSFT) vs. TSMC (TSM): A comparison of their Net Profit Margin (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Operating Profit Margin (TTM)

Both Microsoft (MSFT) at 46.75% and TSMC (TSM) at 53.31% rank in the top quartile for Operating Profit Margin (TTM) among industry peers, indicating both companies convert revenue into operating income more strongly than typical competitors.

MSFT

Software & Services industry group

46.75%

Max
46.75%
Q3
17.04%
Median
6.53%
Q1
-4.60%
Min
-34.31%

TSM

Semiconductors & Semiconductor Equipment industry group

53.31%

Max
64.02%
Q3
24.88%
Median
9.09%
Q1
-2.77%
Min
-35.68%
Microsoft (MSFT) vs. TSMC (TSM): A comparison of their Operating Profit Margin (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Profitability at a Glance

SymbolMSFTTSM
Return on Equity (TTM)33.13%36.93%
Return on Assets (TTM)19.15%24.92%
Net Profit Margin (TTM)39.34%47.00%
Operating Profit Margin (TTM)46.75%53.31%
Gross Profit Margin (TTM)68.31%61.87%

Financial Strength

Current Ratio (MRQ)

Both Microsoft (MSFT) at 1.28 and TSMC (TSM) at 2.49 carry Current Ratio (MRQ) within their industry mid-ranges, suggesting balanced short-term liquidity relative to peers.

MSFT

Software & Services industry group

1.28

Max
4.52
Q3
2.50
Median
1.64
Q1
1.13
Min
0.31

TSM

Semiconductors & Semiconductor Equipment industry group

2.49

Max
9.20
Q3
5.14
Median
3.07
Q1
2.31
Min
1.02
Microsoft (MSFT) vs. TSMC (TSM): A comparison of their Current Ratio (MRQ) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Debt-to-Equity Ratio (MRQ)

Both Microsoft (MSFT) at 0.25 and TSMC (TSM) at 0.17 post Debt-to-Equity Ratio (MRQ) near their industry mid-ranges, so neither company stands out strongly from peers on leverage.

MSFT

Software & Services industry group

0.25

Max
2.69
Q3
1.27
Median
0.38
Q1
0.00
Min
0.00

TSM

Semiconductors & Semiconductor Equipment industry group

0.17

Max
1.18
Q3
0.56
Median
0.19
Q1
0.00
Min
0.00
Microsoft (MSFT) vs. TSMC (TSM): A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Interest Coverage Ratio (TTM)

Microsoft (MSFT) posts Interest Coverage Ratio (TTM) of 891.80, above its industry benchmark range, while TSMC (TSM) at 8.32 sits closer to the industry mid-range.

MSFT

Software & Services industry group

891.80

Max
45.58
Q3
11.44
Median
-0.40
Q1
-13.69
Min
-51.04

TSM

Semiconductors & Semiconductor Equipment industry group

8.32

Max
95.50
Q3
44.75
Median
14.35
Q1
0.46
Min
-45.50
Microsoft (MSFT) vs. TSMC (TSM): A comparison of their Interest Coverage Ratio (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Financial Strength at a Glance

SymbolMSFTTSM
Current Ratio (MRQ)1.282.49
Quick Ratio (MRQ)1.272.31
Debt-to-Equity Ratio (MRQ)0.250.17
Interest Coverage Ratio (TTM)891.808.32

Growth

Revenue Growth

Microsoft (MSFT) vs. TSMC (TSM): A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolMSFTTSM
Revenue Growth (MRQ vs Prior YoY)18.30%35.13%
Revenue Growth (TTM vs Prior YoY)17.87%30.66%
3-Year Revenue CAGR12.42%18.94%
5-Year Revenue CAGR14.52%23.25%

EPS Growth

Microsoft (MSFT) vs. TSMC (TSM): A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolMSFTTSM
EPS Growth (MRQ vs Prior YoY)23.32%58.32%
EPS Growth (TTM vs Prior YoY)29.75%47.30%
3-Year EPS CAGR12.24%19.11%
5-Year EPS CAGR18.80%27.10%

Dividend

Dividend Yield (TTM)

TSMC (TSM) at 0.87% reports Dividend Yield (TTM) in the top quartile of industry peers, ahead of Microsoft (MSFT) at 0.83%, which sits around the industry mid-range.

MSFT

Software & Services industry group

0.83%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

TSM

Semiconductors & Semiconductor Equipment industry group

0.87%

Max
1.06%
Q3
0.43%
Median
0.00%
Q1
0.00%
Min
0.00%
Microsoft (MSFT) vs. TSMC (TSM): A comparison of their Dividend Yield (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Dividend Payout Ratio (TTM)

Both Microsoft (MSFT) at 20.65% and TSMC (TSM) at 25.55% post Dividend Payout Ratio (TTM) outside their industries’ typical mid-range — either leaning toward more retention or more distribution than the industry median.

MSFT

Software & Services industry group

20.65%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

TSM

Semiconductors & Semiconductor Equipment industry group

25.55%

Max
45.87%
Q3
21.77%
Median
0.00%
Q1
0.00%
Min
0.00%
Microsoft (MSFT) vs. TSMC (TSM): A comparison of their Dividend Payout Ratio (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Dividend at a Glance

SymbolMSFTTSM
Dividend Yield (TTM)0.83%0.87%
Dividend Payout Ratio (TTM)20.65%25.55%

Valuation

Price-to-Earnings Ratio (TTM)

TSMC (TSM) at 29.38 trades in the lower-multiple quartile for Price-to-Earnings Ratio (TTM), while Microsoft (MSFT) at 24.92 sits around the industry midpoint — TSM has a lower trailing earnings multiple relative to peers, though the gap should be read alongside growth and earnings quality.

MSFT

Software & Services industry group

24.92

Max
102.57
Q3
62.64
Median
31.77
Q1
14.20
Min
0.35

TSM

Semiconductors & Semiconductor Equipment industry group

29.38

Max
210.81
Q3
119.56
Median
61.47
Q1
39.21
Min
15.75
Microsoft (MSFT) vs. TSMC (TSM): A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Price-to-Sales Ratio (TTM)

TSMC (TSM) at 13.81 carries typical industry Price-to-Sales Ratio (TTM), while Microsoft (MSFT) at 9.80 sits in the higher-multiple quartile — MSFT carries a higher trailing revenue multiple relative to peers.

MSFT

Software & Services industry group

9.80

Max
17.61
Q3
8.53
Median
4.13
Q1
2.23
Min
0.12

TSM

Semiconductors & Semiconductor Equipment industry group

13.81

Max
33.40
Q3
18.97
Median
8.92
Q1
4.85
Min
0.15
Microsoft (MSFT) vs. TSMC (TSM): A comparison of their Price-to-Sales Ratio (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Price-to-Book Ratio (MRQ)

Both Microsoft (MSFT) at 6.63 and TSMC (TSM) at 7.75 post Price-to-Book Ratio (MRQ) near the typical industry midpoint — neither company stands out strongly from peers on book-value multiple.

MSFT

Software & Services industry group

6.63

Max
20.48
Q3
9.90
Median
4.69
Q1
2.39
Min
0.32

TSM

Semiconductors & Semiconductor Equipment industry group

7.75

Max
15.23
Q3
7.79
Median
4.52
Q1
2.23
Min
0.33
Microsoft (MSFT) vs. TSMC (TSM): A comparison of their Price-to-Book Ratio (MRQ) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Valuation at a Glance

SymbolMSFTTSM
Price-to-Earnings Ratio (TTM)24.9229.38
Price-to-Sales Ratio (TTM)9.8013.81
Price-to-Book Ratio (MRQ)6.637.75
Price-to-Free Cash Flow Ratio (TTM)42.7954.06