Which stock is better: AMAT or TSM?

The comparison between Applied Materials, Inc. (AMAT) and Taiwan Semiconductor Manufacturing Company Limited (TSM) depends on your investment criteria. Compare valuation, profitability, growth, and risk metrics to determine which aligns better with your investment goals.

What is the P/E ratio of AMAT vs TSM?

AMAT has a P/E ratio of 49.55, while TSM has a P/E ratio of 31.12. A lower P/E ratio may indicate a more attractive valuation.

What is the market cap difference between AMAT and TSM?

AMAT has a market cap of approximately 417.4B, while TSM has a market cap of approximately 2.2T.

AMAT vs TSM

Name: AMAT Stock
Brand: Applied Materials, Inc.
Price: 525.7 USD
Availability: InStock

In the past 12 months, AMAT returned +173% while TSM gained 78%.

Valuation Growth Profitability Balance Sheet Performance

AMAT

Applied Materials, Inc.

$525.70

-17.9%(1M)

Market Cap417.4B

Technology

Semiconductors

USA

P/E Ratio49.55

ROE39.8%

P/B Ratio17.59

Dividend Yield0.4%

TSM

Taiwan Semiconductor Manufacturing Company Limited

$424.61

-9.2%(1M)

Market Cap2.2T

Technology

Semiconductors

P/E Ratio31.12

ROE39.3%

P/B Ratio10.19

Dividend Yield1.0%

Performance Comparison

Historical returns across multiple timeframes

AMAT leads 6/8

AMAT

Applied Materials, Inc.

+172.9%

1Y Return

TSM

Taiwan Semiconductor Manufacturing Company Limited

+77.8%

1Y Return

AMAT

TSM

Short Term

1M-6M

+27.2%

Medium Term

YTD-1Y

+138.7%

Long Term

3Y-10Y

+821.1%

Valuation

Compare price multiples and valuation ratios

AMAT: 1TSM: 4

Metric	AMAT	TSM	Winner
P/E Ratio Price to earnings ratio	49.55	31.12	TSM
Forward P/E Forward price to earnings ratio	0.00	0.00	Tie
P/S Ratio Price to sales ratio	14.49	14.63	AMAT
P/B Ratio Price to book ratio	17.59	10.19	TSM
P/FCF Ratio Price to free cash flow ratio	70.50	59.00	TSM
EV/EBITDA Enterprise value to EBITDA	37.75	17.76	TSM
PEG Ratio Price/earnings to growth ratio	0.00	0.00	Tie

Profitability

Compare profit margins and returns on capital

AMAT: 1TSM: 5

Metric	AMAT	TSM	Winner
Gross Margin Gross profit margin	49.0%	61.9%	TSM
Operating Margin Operating profit margin	29.5%	53.2%	TSM
Net Margin Net profit margin	29.3%	47.0%	TSM
ROE Return on equity	39.8%	39.3%	AMAT
ROA Return on assets	21.1%	23.9%	TSM
ROIC Return on invested capital	21.6%	27.1%	TSM

Growth

Compare revenue and earnings growth rates

AMAT: 0TSM: 6

Metric	AMAT	TSM	Winner
Revenue Growth (YoY) Year-over-year revenue growth	4.4%	33.0%	TSM
Revenue Growth (3Y) 3-year revenue CAGR	3.2%	19.3%	TSM
Revenue Growth (5Y) 5-year revenue CAGR	10.5%	23.5%	TSM
EPS Growth (YoY) Year-over-year EPS growth	0.6%	49.1%	TSM
EPS Growth (3Y) 3-year EPS CAGR	5.2%	20.3%	TSM
EPS Growth (5Y) 5-year EPS CAGR	17.2%	27.6%	TSM

Balance Sheet & Risk

Compare financial stability and debt levels

AMAT: 1TSM: 4

Metric	AMAT	TSM	Winner
Debt/Equity Debt to equity ratio	0.27	0.17	TSM
Current Ratio Current assets to current liabilities	2.51	2.49	AMAT
Quick Ratio Quick assets to current liabilities	1.80	2.31	TSM
Interest Coverage EBIT to interest expense	31.14	176.08	TSM
Beta Stock volatility vs market	1.57	1.37	TSM

Summary

TSM wins 4-0

Valuation

TSM

Profitability

TSM

Growth

TSM

Balance Sheet

TSM

TSM is more attractively valued. TSM shows stronger profitability. TSM demonstrates better growth. TSM has a stronger balance sheet.

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