TSM vs. ZM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at TSM and ZM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
TSM trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, ZM is a standard domestic listing.
| Symbol | TSM | ZM |
|---|---|---|
| Company Name | Taiwan Semiconductor Manufacturing Company Limited | Zoom Communications Inc. |
| Country | Taiwan | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Semiconductors & Semiconductor Equipment | Software |
| Market Capitalization | 1,496.16 billion USD | 25.29 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | October 9, 1997 | April 18, 2019 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of TSM and ZM 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 | TSM | ZM |
|---|---|---|
| 5-Day Price Return | -2.61% | -3.23% |
| 13-Week Price Return | 20.28% | 4.78% |
| 26-Week Price Return | 33.16% | 5.86% |
| 52-Week Price Return | 17.52% | 16.55% |
| Month-to-Date Return | 12.50% | -1.48% |
| Year-to-Date Return | 21.40% | -0.40% |
| 10-Day Avg. Volume | 36.74M | 3.00M |
| 3-Month Avg. Volume | 33.53M | 3.21M |
| 3-Month Volatility | 24.13% | 34.63% |
| Beta | 1.33 | 0.82 |
Profitability
Return on Equity (TTM)
TSM
33.51%
Semiconductors & Semiconductor Equipment Industry
- Max
- 47.13%
- Q3
- 23.50%
- Median
- 9.94%
- Q1
- 0.86%
- 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.
ZM
13.40%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
ZM’s Return on Equity of 13.40% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
TSM
42.92%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 23.88%
- Median
- 10.17%
- Q1
- 1.21%
- Min
- -32.15%
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.
ZM
24.99%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
A Net Profit Margin of 24.99% places ZM in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
TSM
48.71%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.54%
- Median
- 11.18%
- Q1
- 3.31%
- Min
- -28.36%
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.
ZM
20.43%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
ZM’s Operating Profit Margin of 20.43% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | TSM | ZM |
|---|---|---|
| Return on Equity (TTM) | 33.51% | 13.40% |
| Return on Assets (TTM) | 21.63% | 10.88% |
| Net Profit Margin (TTM) | 42.92% | 24.99% |
| Operating Profit Margin (TTM) | 48.71% | 20.43% |
| Gross Profit Margin (TTM) | 58.58% | 76.38% |
Financial Strength
Current Ratio (MRQ)
TSM
2.37
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.58
- Q3
- 4.24
- Median
- 2.73
- Q1
- 2.13
- Min
- 1.02
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.
ZM
4.45
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
ZM’s Current Ratio of 4.45 is exceptionally high, placing it well outside the typical range for the Software industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
Debt-to-Equity Ratio (MRQ)
TSM
0.21
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.48
- Median
- 0.25
- 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.
ZM
0.00
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
ZM’s Debt-to-Equity Ratio of 0.00 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.
Interest Coverage Ratio (TTM)
TSM
8.32
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 74.71
- Median
- 26.06
- Q1
- 6.43
- Min
- -7.80
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.
ZM
7.63
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
ZM’s Interest Coverage Ratio of 7.63 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | TSM | ZM |
|---|---|---|
| Current Ratio (MRQ) | 2.37 | 4.45 |
| Quick Ratio (MRQ) | 2.15 | 4.36 |
| Debt-to-Equity Ratio (MRQ) | 0.21 | 0.00 |
| Interest Coverage Ratio (TTM) | 8.32 | 7.63 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
TSM
1.23%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.72%
- Q3
- 1.51%
- Median
- 0.69%
- Q1
- 0.00%
- Min
- 0.00%
TSM’s Dividend Yield of 1.23% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
ZM
0.00%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ZM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
TSM
28.42%
Semiconductors & Semiconductor Equipment Industry
- Max
- 205.27%
- Q3
- 88.01%
- Median
- 27.13%
- 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.
ZM
0.00%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ZM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | TSM | ZM |
|---|---|---|
| Dividend Yield (TTM) | 1.23% | 0.00% |
| Dividend Payout Ratio (TTM) | 28.42% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
TSM
23.18
Semiconductors & Semiconductor Equipment Industry
- Max
- 106.30
- Q3
- 61.93
- Median
- 38.96
- Q1
- 23.71
- Min
- 13.06
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, TSM’s P/E Ratio of 23.18 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
ZM
21.32
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
In the lower quartile for the Software industry, ZM’s P/E Ratio of 21.32 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
TSM
9.95
Semiconductors & Semiconductor Equipment Industry
- Max
- 19.99
- Q3
- 10.21
- Median
- 5.23
- Q1
- 2.88
- Min
- 1.13
TSM’s P/S Ratio of 9.95 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.
ZM
5.33
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
ZM’s P/S Ratio of 5.33 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.
Price-to-Book Ratio (MRQ)
TSM
6.00
Semiconductors & Semiconductor Equipment Industry
- Max
- 14.22
- Q3
- 6.94
- Median
- 4.29
- Q1
- 1.99
- Min
- 0.67
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.
ZM
2.50
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
ZM’s P/B Ratio of 2.50 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | TSM | ZM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 23.18 | 21.32 |
| Price-to-Sales Ratio (TTM) | 9.95 | 5.33 |
| Price-to-Book Ratio (MRQ) | 6.00 | 2.50 |
| Price-to-Free Cash Flow Ratio (TTM) | 36.24 | 13.73 |