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MSFT vs. TSM: Microsoft vs. TSMC Stock Comparison

How do Microsoft (MSFT) and TSMC (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

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 ordinary local shares, while TSMC (TSM) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Microsoft (MSFT) and TSMC (TSM)
Profile ItemMSFTTSM
NameMicrosoft Corp.Taiwan Semiconductor Manufacturing Co. Ltd. ADR
Country/RegionUnited StatesTaiwan
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSemiconductors & Semiconductor Equipment
GICS IndustrySoftwareSemiconductors & Semiconductor Equipment
GICS Sub-IndustrySystems SoftwareSemiconductors
Market Capitalization3,588.32 billion USD2,172.87 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateMarch 13, 1986October 9, 1997
Security TypeCommon StockADR

Price Performance

Cumulative Growth

MSFT
TSM
GSPC
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Microsoft (MSFT) vs. TSMC (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 Microsoft (MSFT) and TSMC (TSM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Microsoft (MSFT) and TSMC (TSM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Microsoft (MSFT) and TSMC (TSM)
MetricMSFTTSM
Total Return (1Y)-3.38%86.33%
Total Return (3Y, Annualized)15.39%67.78%
Total Return (5Y, Annualized)10.59%33.27%

Risk Profile

Drawdown History

MSFT
TSM
GSPC
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Microsoft (MSFT) vs. TSMC (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 Microsoft (MSFT) and TSMC (TSM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and TSMC (TSM)
MetricMSFTTSM
Volatility (1Y, Annualized)32.24%40.41%
Beta (5Y)1.101.39
Max Drawdown (5Y)-37.15%-56.47%
Avg. Volume (3M)39.49M13.44M

Risk-Adjusted Performance

Risk-Return Positioning

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MSFT and TSM are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microsoft (MSFT) and TSMC (TSM)
MetricMSFTTSM
Sharpe Ratio (1Y)-0.232.04
Sortino Ratio (1Y)-0.353.17

Profitability

ROE (TTM)

Both Microsoft (MSFT) at 34.04% and TSMC (TSM) at 39.97% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

MSFT

Software & Services industry group

34.04%

Max
54.69%
MSFT
34.04%
Q3
16.79%
Median
4.96%
Q1
-13.49%
Min
-54.87%

TSM

Semiconductors & Semiconductor Equipment industry group

39.97%

Max
41.07%
TSM
39.97%
Q3
18.60%
Median
8.31%
Q1
-3.63%
Min
-21.32%
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Microsoft (MSFT) vs. TSMC (TSM): A comparison of their ROE against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Net Margin (TTM)

For every dollar of sales, both Microsoft (MSFT) at 40.31% and TSMC (TSM) at 49.92% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

MSFT

Software & Services industry group

40.31%

Max
41.99%
MSFT
40.31%
Q3
15.05%
Median
3.31%
Q1
-6.07%
Min
-30.39%

TSM

Semiconductors & Semiconductor Equipment industry group

49.92%

Max
57.64%
TSM
49.92%
Q3
23.05%
Median
9.48%
Q1
-0.27%
Min
-34.50%
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Microsoft (MSFT) vs. TSMC (TSM): A comparison of their net margin against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Operating Margin (TTM)

TSMC (TSM) at 60.34% shows unusually strong operating efficiency — above its industry’s operating margin range — and Microsoft (MSFT) at 45.11% also operates in the top quartile.

MSFT

Software & Services industry group

45.11%

Max
47.12%
MSFT
45.11%
Q3
14.94%
Median
4.55%
Q1
-7.01%
Min
-32.77%

TSM

Semiconductors & Semiconductor Equipment industry group

60.34%

TSM
60.34%
Max
48.99%
Q3
23.49%
Median
13.09%
Q1
2.22%
Min
-27.51%
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Microsoft (MSFT) vs. TSMC (TSM): A comparison of their operating margin against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and TSMC (TSM)
MetricMSFTTSM
ROE (TTM)34.04%39.97%
ROA (TTM)14.09%19.00%
Net Margin (TTM)40.31%49.92%
Operating Margin (TTM)45.11%60.34%
Gross Margin (TTM)67.94%64.23%

Growth

Revenue Growth

TSMC (TSM) at 31.61% sits in the top revenue growth quartile, while Microsoft (MSFT) at 17.79% is closer to the peer norm — faster top-line expansion for TSM.

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

EPS Growth

TSMC (TSM) at 44.69% sits in the top EPS growth quartile, while Microsoft (MSFT) at 31.60% is closer to the peer norm — faster per-share earnings growth for TSM.

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

Growth Metrics

Growth metrics for Microsoft (MSFT) and TSMC (TSM)
MetricMSFTTSM
Revenue Growth (YoY)17.79%31.61%
Revenue Growth (3Y CAGR)16.12%18.94%
EPS Growth (YoY)31.60%44.69%
EPS Growth (3Y CAGR)22.86%18.65%

Financial Strength

Current Ratio (MRQ)

Both Microsoft (MSFT) at 1.23 and TSMC (TSM) at 2.46 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

MSFT

Software & Services industry group

1.23

Max
5.67
Q3
2.91
Median
1.64
MSFT
1.23
Q1
1.02
Min
0.03

TSM

Semiconductors & Semiconductor Equipment industry group

2.46

Max
9.75
Q3
5.29
Median
3.43
TSM
2.46
Q1
2.31
Min
1.07
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Microsoft (MSFT) vs. TSMC (TSM): A comparison of their current ratio against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Debt / Equity (MRQ)

Both Microsoft (MSFT) at 0.29 and TSMC (TSM) at 0.17 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

MSFT

Software & Services industry group

0.29

Max
2.35
Q3
1.02
Median
0.33
MSFT
0.29
Q1
0.06
Min
0.00

TSM

Semiconductors & Semiconductor Equipment industry group

0.17

Max
1.44
Q3
0.65
Median
0.19
TSM
0.17
Q1
0.05
Min
0.00
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Microsoft (MSFT) vs. TSMC (TSM): A comparison of their debt-to-equity ratio against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Microsoft (MSFT) and TSMC (TSM)
MetricMSFTTSM
Current Ratio (MRQ)1.232.46
Debt / Equity (MRQ)0.290.17
Net Debt / EBITDA0.27-0.77

Dividends

Dividend Yield (TTM)

Both Microsoft (MSFT) at 0.76% and TSMC (TSM) at 6.25% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

MSFT

Software & Services industry group

0.76%

MSFT
0.76%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

TSM

Semiconductors & Semiconductor Equipment industry group

6.25%

TSM
6.25%
Max
0.80%
Q3
0.33%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. TSMC (TSM): A comparison of their dividend yield against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Dividend Payout Ratio (TTM)

Both pay out more than their industries’ typical bands, and MSFT more so: TSMC (TSM) at 25.74% sits above the band, while Microsoft (MSFT) at 19.83% exceeds every peer in its group.

MSFT

Software & Services industry group

19.83%

MSFT
19.83%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

TSM

Semiconductors & Semiconductor Equipment industry group

25.74%

Max
45.89%
TSM
25.74%
Q3
18.55%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. TSMC (TSM): A comparison of their payout ratio against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and TSMC (TSM)
MetricMSFTTSM
Dividend Yield (TTM)0.76%6.25%
Dividend Payout Ratio (TTM)19.83%25.74%

Valuation

P/E Ratio (TTM)

TSMC (TSM) at 31.24 sits in the cheaper P/E ratio quartile, while Microsoft (MSFT) at 26.95 is closer to its industry’s usual earnings multiple — a discount for TSM, though growth and earnings durability still matter.

MSFT

Software & Services industry group

26.95

Max
106.57
Q3
61.67
Median
31.54
MSFT
26.95
Q1
16.92
Min
0.38

TSM

Semiconductors & Semiconductor Equipment industry group

31.24

Max
141.07
Q3
88.69
Median
46.52
Q1
32.47
TSM
31.24
Min
9.98
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Microsoft (MSFT) vs. TSMC (TSM): A comparison of their P/E ratio against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

P/S Ratio (TTM)

TSMC (TSM) at 0.49 looks cheap on sales in the lower P/S ratio quartile, while Microsoft (MSFT) at 10.81 looks rich in the upper quartile — a clear gap in price per dollar of revenue.

MSFT

Software & Services industry group

10.81

Max
22.92
MSFT
10.81
Q3
10.70
Median
4.65
Q1
2.38
Min
0.02

TSM

Semiconductors & Semiconductor Equipment industry group

0.49

Max
36.96
Q3
17.13
Median
7.65
Q1
3.38
TSM
0.49
Min
0.01
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Microsoft (MSFT) vs. TSMC (TSM): A comparison of their P/S ratio against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.11 sits near its industry’s typical P/B ratio, while TSMC (TSM) at 86.24 prices above its benchmark range — TSM looks rich relative to book.

MSFT

Software & Services industry group

8.11

Max
19.37
Q3
9.63
MSFT
8.11
Median
4.50
Q1
2.03
Min
-9.20

TSM

Semiconductors & Semiconductor Equipment industry group

86.24

TSM
86.24
Max
21.84
Q3
11.73
Median
5.57
Q1
2.93
Min
0.04
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Microsoft (MSFT) vs. TSMC (TSM): A comparison of their P/B ratio against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and TSMC (TSM)
MetricMSFTTSM
P/E Ratio (TTM)26.9531.24
P/S Ratio (TTM)10.810.49
P/B Ratio (MRQ)8.1186.24
Free Cash Flow Yield (TTM)0.46%33.63%