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.
| Profile Item | MSFT | TSM |
|---|---|---|
| Name | Microsoft Corp. | Taiwan Semiconductor Manufacturing Co. Ltd. ADR |
| 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 | 2,855.19 billion USD | 2,266.28 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | March 13, 1986 | October 9, 1997 |
| Security Type | Common Stock | ADR |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | MSFT | TSM |
|---|---|---|
| Total Return (1Y) | -23.05% | 90.56% |
| Total Return (3Y, Annualized) | 5.28% | 65.69% |
| Total Return (5Y, Annualized) | 7.58% | 31.50% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | MSFT | TSM |
|---|---|---|
| Volatility (1Y, Annualized) | 27.14% | 39.47% |
| Beta (5Y) | 1.13 | 1.37 |
| Max Drawdown (5Y) | -37.15% | -56.47% |
| Avg. Volume (3M) | 40.00M | 13.98M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | MSFT | TSM |
|---|---|---|
| Sharpe Ratio (1Y) | -1.00 | 2.19 |
| Sortino Ratio (1Y) | -1.32 | 3.41 |
Profitability
ROE (TTM)
Both Microsoft (MSFT) at 34.01% and TSMC (TSM) at 36.21% 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
34.01%
- Max
- 53.38%
- MSFT
- 34.01%
- Q3
- 16.69%
- Median
- 5.43%
- Q1
- -13.37%
- Min
- -58.43%
TSM
Semiconductors & Semiconductor Equipment industry group
36.21%
- Max
- 39.69%
- TSM
- 36.21%
- Q3
- 17.11%
- Median
- 6.75%
- Q1
- -4.42%
- Min
- -35.15%
Net Margin (TTM)
For every dollar of sales, both Microsoft (MSFT) at 39.34% and TSMC (TSM) at 46.51% retain more as net profit than most peers, landing in the top net margin quartile of their industries.
MSFT
Software & Services industry group
39.34%
- Max
- 44.20%
- MSFT
- 39.34%
- Q3
- 14.97%
- Median
- 3.70%
- Q1
- -5.37%
- Min
- -34.99%
TSM
Semiconductors & Semiconductor Equipment industry group
46.51%
- Max
- 57.72%
- TSM
- 46.51%
- Q3
- 21.04%
- Median
- 7.16%
- Q1
- -3.57%
- Min
- -32.92%
Operating Margin (TTM)
Both Microsoft (MSFT) at 46.33% and TSMC (TSM) at 58.11% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.
MSFT
Software & Services industry group
46.33%
- Max
- 58.19%
- MSFT
- 46.33%
- Q3
- 16.56%
- Median
- 5.16%
- Q1
- -11.34%
- Min
- -52.94%
TSM
Semiconductors & Semiconductor Equipment industry group
58.11%
- Max
- 61.85%
- TSM
- 58.11%
- Q3
- 21.10%
- Median
- 10.43%
- Q1
- -7.89%
- Min
- -46.64%
Profitability Metrics
| Metric | MSFT | TSM |
|---|---|---|
| ROE (TTM) | 34.01% | 36.21% |
| ROA (TTM) | 14.81% | 17.32% |
| Net Margin (TTM) | 39.34% | 46.51% |
| Operating Margin (TTM) | 46.33% | 58.11% |
| Gross Margin (TTM) | 68.31% | 61.87% |
Growth
Revenue Growth
Revenue Growth Metrics
| Metric | MSFT | TSM |
|---|---|---|
| Revenue Growth (YoY) | 14.93% | 31.61% |
| Revenue Growth (3Y CAGR) | 12.42% | 18.94% |
EPS Growth
EPS Growth Metrics
| Metric | MSFT | TSM |
|---|---|---|
| EPS Growth (YoY) | 15.59% | 46.41% |
| EPS Growth (3Y CAGR) | 12.23% | 19.12% |
Financial Strength
Current Ratio (MRQ)
Both Microsoft (MSFT) at 1.28 and TSMC (TSM) at 2.49 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.
MSFT
Software & Services industry group
1.28
- Max
- 5.37
- Q3
- 2.84
- Median
- 1.71
- MSFT
- 1.28
- Q1
- 1.06
- Min
- 0.03
TSM
Semiconductors & Semiconductor Equipment industry group
2.49
- Max
- 11.30
- Q3
- 6.01
- Median
- 3.31
- TSM
- 2.49
- Q1
- 2.40
- Min
- 0.51
Debt / Equity (MRQ)
Both Microsoft (MSFT) at 0.30 and TSMC (TSM) at 0.18 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
MSFT
Software & Services industry group
0.30
- Max
- 2.60
- Q3
- 1.08
- Median
- 0.32
- MSFT
- 0.30
- Q1
- 0.06
- Min
- 0.00
TSM
Semiconductors & Semiconductor Equipment industry group
0.18
- Max
- 1.44
- Q3
- 0.63
- Median
- 0.23
- TSM
- 0.18
- Q1
- 0.05
- Min
- 0.00
Financial Strength Metrics
| Metric | MSFT | TSM |
|---|---|---|
| Current Ratio (MRQ) | 1.28 | 2.49 |
| Debt / Equity (MRQ) | 0.30 | 0.18 |
| Net Debt / EBITDA | 0.26 | -0.80 |
Dividends
Dividend Yield (TTM)
Both Microsoft (MSFT) at 0.93% and TSMC (TSM) at 5.49% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.
MSFT
Software & Services industry group
0.93%
- MSFT
- 0.93%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TSM
Semiconductors & Semiconductor Equipment industry group
5.49%
- TSM
- 5.49%
- Max
- 0.65%
- Q3
- 0.27%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both pay out more than their industries’ typical bands, and MSFT more so: TSMC (TSM) at 27.93% sits above the band, while Microsoft (MSFT) at 20.73% exceeds every peer in its group.
MSFT
Software & Services industry group
20.73%
- MSFT
- 20.73%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TSM
Semiconductors & Semiconductor Equipment industry group
27.93%
- Max
- 47.82%
- TSM
- 27.93%
- Q3
- 20.31%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | MSFT | TSM |
|---|---|---|
| Dividend Yield (TTM) | 0.93% | 5.49% |
| Dividend Payout Ratio (TTM) | 20.73% | 27.93% |
Valuation
P/E Ratio (TTM)
TSMC (TSM) at 38.03 sits in the cheaper P/E ratio quartile, while Microsoft (MSFT) at 22.84 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
22.84
- Max
- 116.20
- Q3
- 63.30
- Median
- 30.67
- MSFT
- 22.84
- Q1
- 16.16
- Min
- 0.42
TSM
Semiconductors & Semiconductor Equipment industry group
38.03
- Max
- 221.34
- Q3
- 128.43
- Median
- 62.84
- Q1
- 42.04
- TSM
- 38.03
- Min
- 10.39
P/S Ratio (TTM)
TSMC (TSM) at 0.55 sits in the cheaper P/S ratio quartile while Microsoft (MSFT) at 8.97 prices around its industry’s middle — TSM costs less per dollar of sales, though read it alongside growth and margins.
MSFT
Software & Services industry group
8.97
- Max
- 19.25
- Q3
- 9.16
- MSFT
- 8.97
- Median
- 4.41
- Q1
- 2.24
- Min
- 0.02
TSM
Semiconductors & Semiconductor Equipment industry group
0.55
- Max
- 42.67
- Q3
- 19.87
- Median
- 10.12
- Q1
- 4.27
- TSM
- 0.55
- Min
- 0.01
P/B Ratio (MRQ)
Microsoft (MSFT) at 6.89 sits near its industry’s typical P/B ratio, while TSMC (TSM) at 98.75 prices above its benchmark range — TSM looks rich relative to book.
MSFT
Software & Services industry group
6.89
- Max
- 19.10
- Q3
- 8.81
- MSFT
- 6.89
- Median
- 4.09
- Q1
- 1.95
- Min
- -7.57
TSM
Semiconductors & Semiconductor Equipment industry group
98.75
- TSM
- 98.75
- Max
- 25.80
- Q3
- 13.13
- Median
- 7.44
- Q1
- 3.77
- Min
- 0.19
Valuation Metrics
| Metric | MSFT | TSM |
|---|---|---|
| P/E Ratio (TTM) | 22.84 | 38.03 |
| P/S Ratio (TTM) | 8.97 | 0.55 |
| P/B Ratio (MRQ) | 6.89 | 98.75 |
| Free Cash Flow Yield (TTM) | 1.30% | 31.73% |