MSFT vs. TSM: A Head-to-Head Stock Comparison
Here’s a clear look at MSFT and TSM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MSFT | TSM |
|---|---|---|
| Company Name | Microsoft Corporation | Taiwan Semiconductor Manufacturing Company Limited |
| Country | 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 | 3,125.66 billion USD | 2,147.95 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | March 13, 1986 | October 9, 1997 |
| Security Type | Common Stock | ADR |
MSFT is a standard domestic listing, while TSM trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
MSFT’s market capitalization stands at 3,125.66 billion USD, while TSM’s is 2,147.95 billion USD, indicating their market valuations are broadly comparable.
TSM is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. MSFT, on the other hand, is a domestic entity.
Historical Performance
This chart compares the performance of MSFT 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 | MSFT | TSM |
|---|---|---|
| 5-Day Price Return | 1.53% | 0.66% |
| 13-Week Price Return | 1.59% | 29.38% |
| 26-Week Price Return | -19.97% | 54.73% |
| 52-Week Price Return | -2.90% | 17.52% |
| Month-to-Date Return | 3.19% | 7.26% |
| Year-to-Date Return | -13.00% | 47.74% |
| 10-Day Avg. Volume | 34.83M | 47.88M |
| 3-Month Avg. Volume | 34.85M | 41.44M |
| 3-Month Volatility | 29.03% | 37.12% |
| Beta | 1.09 | 1.20 |
With betas of 1.09 for MSFT and 1.20 for TSM, both stocks show similar sensitivity to overall market movements.
Profitability
Return on Equity (TTM)
MSFT
33.13%
Software Industry
- Max
- 66.41%
- Q3
- 25.18%
- Median
- 10.29%
- Q1
- -3.47%
- Min
- -39.77%
In the upper quartile for the Software industry, MSFT’s Return on Equity of 33.13% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
TSM
36.93%
Semiconductors & Semiconductor Equipment Industry
- Max
- 48.79%
- Q3
- 19.97%
- Median
- 7.89%
- Q1
- 0.23%
- Min
- -28.42%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, TSM’s Return on Equity of 36.93% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
MSFT
39.34%
Software Industry
- Max
- 46.40%
- Q3
- 19.46%
- Median
- 11.78%
- Q1
- -2.46%
- Min
- -35.22%
A Net Profit Margin of 39.34% places MSFT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
TSM
47.00%
Semiconductors & Semiconductor Equipment Industry
- Max
- 55.60%
- Q3
- 23.51%
- Median
- 10.31%
- Q1
- -0.69%
- Min
- -34.23%
A Net Profit Margin of 47.00% 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)
MSFT
46.75%
Software Industry
- Max
- 49.62%
- Q3
- 25.22%
- Median
- 13.11%
- Q1
- -3.59%
- Min
- -43.76%
An Operating Profit Margin of 46.75% places MSFT in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
TSM
53.31%
Semiconductors & Semiconductor Equipment Industry
- Max
- 60.38%
- Q3
- 27.09%
- Median
- 12.40%
- Q1
- 2.30%
- Min
- -25.47%
An Operating Profit Margin of 53.31% 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 | 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)
MSFT
1.28
Software Industry
- Max
- 3.83
- Q3
- 2.25
- Median
- 1.55
- Q1
- 1.03
- Min
- 0.08
MSFT’s Current Ratio of 1.28 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
TSM
2.49
Semiconductors & Semiconductor Equipment Industry
- Max
- 7.65
- Q3
- 4.58
- Median
- 2.90
- Q1
- 2.27
- Min
- 1.23
TSM’s Current Ratio of 2.49 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)
MSFT
0.25
Software Industry
- Max
- 2.70
- Q3
- 1.08
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
MSFT’s Debt-to-Equity Ratio of 0.25 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
TSM
0.17
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.34
- Q3
- 0.57
- Median
- 0.24
- Q1
- 0.01
- Min
- 0.00
TSM’s Debt-to-Equity Ratio of 0.17 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)
MSFT
891.80
Software Industry
- Max
- 45.58
- Q3
- 17.44
- Median
- 2.12
- Q1
- -7.25
- Min
- -36.57
With an Interest Coverage Ratio of 891.80, MSFT demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.
TSM
8.32
Semiconductors & Semiconductor Equipment Industry
- Max
- 135.68
- Q3
- 58.79
- Median
- 14.73
- Q1
- 2.53
- Min
- -37.06
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 | 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)
MSFT
0.82%
Software Industry
- Max
- 1.03%
- Q3
- 0.45%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.82%, MSFT offers a more attractive income stream than most of its peers in the Software industry, signaling a strong commitment to shareholder returns.
TSM
0.84%
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.98%
- Q3
- 0.81%
- Median
- 0.27%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.84%, TSM offers a more attractive income stream than most of its peers in the Semiconductors & Semiconductor Equipment industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
MSFT
20.65%
Software Industry
- Max
- 35.09%
- Q3
- 16.21%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT’s Dividend Payout Ratio of 20.65% is in the upper quartile for the Software industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
TSM
25.55%
Semiconductors & Semiconductor Equipment Industry
- Max
- 168.19%
- Q3
- 72.81%
- Median
- 22.20%
- Q1
- 0.00%
- Min
- 0.00%
TSM’s Dividend Payout Ratio of 25.55% 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 | MSFT | TSM |
|---|---|---|
| Dividend Yield (TTM) | 0.82% | 0.84% |
| Dividend Payout Ratio (TTM) | 20.65% | 25.55% |
Valuation
Price-to-Earnings Ratio (TTM)
MSFT
25.23
Software Industry
- Max
- 126.48
- Q3
- 63.72
- Median
- 31.64
- Q1
- 20.28
- Min
- 9.61
MSFT’s P/E Ratio of 25.23 is within the middle range for the Software 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
30.25
Semiconductors & Semiconductor Equipment Industry
- Max
- 181.91
- Q3
- 100.05
- Median
- 57.82
- Q1
- 38.78
- Min
- 13.96
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, TSM’s P/E Ratio of 30.25 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
MSFT
9.93
Software Industry
- Max
- 16.39
- Q3
- 8.88
- Median
- 5.32
- Q1
- 3.29
- Min
- 0.90
MSFT’s P/S Ratio of 9.93 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
TSM
14.22
Semiconductors & Semiconductor Equipment Industry
- Max
- 31.49
- Q3
- 15.35
- Median
- 8.59
- Q1
- 4.32
- Min
- 1.15
TSM’s P/S Ratio of 14.22 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)
MSFT
6.63
Software Industry
- Max
- 25.50
- Q3
- 12.25
- Median
- 6.58
- Q1
- 3.34
- Min
- 0.38
MSFT’s P/B Ratio of 6.63 is within the conventional range for the Software 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
7.75
Semiconductors & Semiconductor Equipment Industry
- Max
- 15.44
- Q3
- 8.26
- Median
- 3.95
- Q1
- 1.89
- Min
- 0.78
TSM’s P/B Ratio of 7.75 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 | MSFT | TSM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 25.23 | 30.25 |
| Price-to-Sales Ratio (TTM) | 9.93 | 14.22 |
| Price-to-Book Ratio (MRQ) | 6.63 | 7.75 |
| Price-to-Free Cash Flow Ratio (TTM) | 43.33 | 55.67 |