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.
| Symbol | MSFT | TSM |
|---|---|---|
| Company Name | Microsoft Corporation | Taiwan Semiconductor Manufacturing Company Limited |
| Country/Region | United States | Taiwan |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Semiconductors & Semiconductor Equipment |
| GICS Industry | Software | Semiconductors & Semiconductor Equipment |
| GICS Sub-Industry | Systems Software | Semiconductors |
| Market Capitalization | 3,113.18 billion USD | 2,111.67 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | March 13, 1986 | October 9, 1997 |
| Security Type | Common Stock | ADR |
Historical Performance
Historical Performance at a Glance
| Symbol | MSFT | TSM |
|---|---|---|
| 5-Day Price Return | -0.67% | -3.74% |
| 13-Week Price Return | 5.18% | 22.41% |
| 26-Week Price Return | -16.73% | 44.70% |
| 52-Week Price Return | -7.40% | 17.52% |
| Month-to-Date Return | 2.77% | 2.34% |
| Year-to-Date Return | -13.34% | 40.97% |
| 10-Day Avg. Volume | 34.00M | 40.33M |
| 3-Month Avg. Volume | 36.41M | 42.75M |
| 3-Month Volatility | 27.08% | 37.54% |
| Beta | 1.09 | 1.18 |
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%
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%
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%
Profitability at a Glance
| Symbol | MSFT | TSM |
|---|---|---|
| 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
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
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
Financial Strength at a Glance
| Symbol | MSFT | TSM |
|---|---|---|
| Current Ratio (MRQ) | 1.28 | 2.49 |
| Quick Ratio (MRQ) | 1.27 | 2.31 |
| Debt-to-Equity Ratio (MRQ) | 0.25 | 0.17 |
| Interest Coverage Ratio (TTM) | 891.80 | 8.32 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | MSFT | TSM |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 18.30% | 35.13% |
| Revenue Growth (TTM vs Prior YoY) | 17.87% | 30.66% |
| 3-Year Revenue CAGR | 12.42% | 18.94% |
| 5-Year Revenue CAGR | 14.52% | 23.25% |
EPS Growth
EPS Growth at a Glance
| Symbol | MSFT | TSM |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 23.32% | 58.32% |
| EPS Growth (TTM vs Prior YoY) | 29.75% | 47.30% |
| 3-Year EPS CAGR | 12.24% | 19.11% |
| 5-Year EPS CAGR | 18.80% | 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%
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%
Dividend at a Glance
| Symbol | MSFT | TSM |
|---|---|---|
| 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
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
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
Valuation at a Glance
| Symbol | MSFT | TSM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 24.92 | 29.38 |
| Price-to-Sales Ratio (TTM) | 9.80 | 13.81 |
| Price-to-Book Ratio (MRQ) | 6.63 | 7.75 |
| Price-to-Free Cash Flow Ratio (TTM) | 42.79 | 54.06 |