SAP vs. TSM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at SAP and TSM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
Both SAP and TSM are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.
| Symbol | SAP | TSM |
|---|---|---|
| Company Name | SAP SE | Taiwan Semiconductor Manufacturing Company Limited |
| Country | Germany | Taiwan |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 320.61 billion USD | 1,185.64 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | September 18, 1995 | October 9, 1997 |
| Security Type | ADR | ADR |
Historical Performance
This chart compares the performance of SAP 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 | SAP | TSM |
|---|---|---|
| 5-Day Price Return | -0.88% | -3.40% |
| 13-Week Price Return | -10.87% | 14.65% |
| 26-Week Price Return | -14.46% | 4.13% |
| 52-Week Price Return | 20.56% | 17.52% |
| Month-to-Date Return | -5.54% | -2.16% |
| Year-to-Date Return | 0.25% | 5.58% |
| 10-Day Avg. Volume | 1.46M | 37.53M |
| 3-Month Avg. Volume | 1.57M | 34.71M |
| 3-Month Volatility | 25.86% | 26.30% |
| Beta | 0.98 | 1.28 |
Profitability
Return on Equity (TTM)
SAP
15.09%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
SAP’s Return on Equity of 15.09% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
TSM
33.51%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.74%
- Q3
- 23.49%
- Median
- 11.60%
- Q1
- 3.23%
- Min
- -20.69%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, TSM’s Return on Equity of 33.51% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
SAP
18.23%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
SAP’s Net Profit Margin of 18.23% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.
TSM
42.92%
Semiconductors & Semiconductor Equipment Industry
- Max
- 44.17%
- Q3
- 22.38%
- Median
- 11.95%
- Q1
- 3.21%
- Min
- -25.16%
A Net Profit Margin of 42.92% 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)
SAP
25.13%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
An Operating Profit Margin of 25.13% places SAP 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
48.71%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.03%
- Q3
- 27.84%
- Median
- 12.45%
- Q1
- 5.15%
- Min
- -28.61%
An Operating Profit Margin of 48.71% 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 | SAP | TSM |
|---|---|---|
| Return on Equity (TTM) | 15.09% | 33.51% |
| Return on Assets (TTM) | 9.09% | 21.63% |
| Net Profit Margin (TTM) | 18.23% | 42.92% |
| Operating Profit Margin (TTM) | 25.13% | 48.71% |
| Gross Profit Margin (TTM) | 73.80% | 58.58% |
Financial Strength
Current Ratio (MRQ)
SAP
1.03
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
SAP’s Current Ratio of 1.03 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
TSM
2.37
Semiconductors & Semiconductor Equipment Industry
- Max
- 8.42
- Q3
- 4.70
- Median
- 2.75
- Q1
- 2.07
- Min
- 1.04
TSM’s Current Ratio of 2.37 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)
SAP
0.21
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
SAP’s Debt-to-Equity Ratio of 0.21 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
0.21
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.45
- Median
- 0.22
- Q1
- 0.01
- Min
- 0.00
TSM’s Debt-to-Equity Ratio of 0.21 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)
SAP
32.64
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
SAP’s Interest Coverage Ratio of 32.64 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
TSM
8.32
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.10
- Median
- 27.22
- Q1
- 7.28
- Min
- -4.26
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 | SAP | TSM |
|---|---|---|
| Current Ratio (MRQ) | 1.03 | 2.37 |
| Quick Ratio (MRQ) | 1.03 | 2.15 |
| Debt-to-Equity Ratio (MRQ) | 0.21 | 0.21 |
| Interest Coverage Ratio (TTM) | 32.64 | 8.32 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
SAP
0.99%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SAP’s Dividend Yield of 0.99% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
TSM
1.35%
Semiconductors & Semiconductor Equipment Industry
- Max
- 4.16%
- Q3
- 1.78%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
TSM’s Dividend Yield of 1.35% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
SAP
161.64%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 161.64%, SAP’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
TSM
28.42%
Semiconductors & Semiconductor Equipment Industry
- Max
- 196.12%
- Q3
- 87.72%
- Median
- 26.57%
- Q1
- 0.00%
- Min
- 0.00%
TSM’s Dividend Payout Ratio of 28.42% 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 | SAP | TSM |
|---|---|---|
| Dividend Yield (TTM) | 0.99% | 1.35% |
| Dividend Payout Ratio (TTM) | 161.64% | 28.42% |
Valuation
Price-to-Earnings Ratio (TTM)
SAP
42.26
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
SAP’s P/E Ratio of 42.26 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
21.05
Semiconductors & Semiconductor Equipment Industry
- Max
- 109.37
- Q3
- 57.11
- Median
- 28.95
- Q1
- 22.13
- Min
- 11.14
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, TSM’s P/E Ratio of 21.05 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
SAP
7.70
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
SAP’s P/S Ratio of 7.70 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
TSM
9.04
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.09
- Q3
- 10.10
- Median
- 4.82
- Q1
- 2.60
- Min
- 0.93
TSM’s P/S Ratio of 9.04 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)
SAP
7.74
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
SAP’s P/B Ratio of 7.74 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
6.00
Semiconductors & Semiconductor Equipment Industry
- Max
- 13.56
- Q3
- 6.75
- Median
- 3.68
- Q1
- 1.89
- Min
- 0.60
TSM’s P/B Ratio of 6.00 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 | SAP | TSM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 42.26 | 21.05 |
| Price-to-Sales Ratio (TTM) | 7.70 | 9.04 |
| Price-to-Book Ratio (MRQ) | 7.74 | 6.00 |
| Price-to-Free Cash Flow Ratio (TTM) | 37.81 | 32.90 |