Which stock is better: ARM or TSM?

The comparison between Arm Holdings plc American Depositary Shares (ARM) 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 ARM vs TSM?

ARM has a P/E ratio of 415.43, while TSM has a P/E ratio of 31.66. A lower P/E ratio may indicate a more attractive valuation.

What is the market cap difference between ARM and TSM?

ARM has a market cap of approximately 435B, while TSM has a market cap of approximately 2.3T.

ARM vs TSM

Name: ARM Stock
Brand: Arm Holdings plc American Depositary Shares
Price: 408.85 USD
Availability: InStock

In the past 12 months, ARM returned +224% while TSM gained 124%.

Valuation Growth Profitability Balance Sheet Performance

ARM

Arm Holdings plc American Depositary Shares

$408.85

93.6%(1M)

Market Cap435B

Technology

Semiconductors

P/E Ratio415.43

ROE11.9%

P/B Ratio45.32

Dividend Yield0.0%

TSM

Taiwan Semiconductor Manufacturing Company Limited

$435.63

9.5%(1M)

Market Cap2.3T

Technology

Semiconductors

P/E Ratio31.66

ROE36.9%

P/B Ratio10.37

Dividend Yield0.9%

Performance Comparison

Historical returns across multiple timeframes

ARM leads 7/8

ARM

Arm Holdings plc American Depositary Shares

+224.3%

1Y Return

TSM

Taiwan Semiconductor Manufacturing Company Limited

+123.6%

1Y Return

ARM

TSM

Short Term

1M-6M

+172.4%

Medium Term

YTD-1Y

+249.2%

Long Term

3Y-10Y

+744.5%

Valuation

Compare price multiples and valuation ratios

ARM: 0TSM: 5

Metric	ARM	TSM	Winner
P/E Ratio Price to earnings ratio	415.43	31.66	TSM
Forward P/E Forward price to earnings ratio	0.00	0.00	Tie
P/S Ratio Price to sales ratio	76.40	14.88	TSM
P/B Ratio Price to book ratio	45.32	10.37	TSM
P/FCF Ratio Price to free cash flow ratio	386.73	60.02	TSM
EV/EBITDA Enterprise value to EBITDA	273.69	20.22	TSM
PEG Ratio Price/earnings to growth ratio	0.00	0.00	Tie

Profitability

Compare profit margins and returns on capital

ARM: 1TSM: 5

Metric	ARM	TSM	Winner
Gross Margin Gross profit margin	94.6%	61.9%	ARM
Operating Margin Operating profit margin	18.3%	53.2%	TSM
Net Margin Net profit margin	18.4%	47.0%	TSM
ROE Return on equity	11.9%	36.9%	TSM
ROA Return on assets	8.4%	22.3%	TSM
ROIC Return on invested capital	7.3%	25.8%	TSM

Growth

Compare revenue and earnings growth rates

ARM: 1TSM: 5

Metric	ARM	TSM	Winner
Revenue Growth (YoY) Year-over-year revenue growth	22.8%	33.0%	TSM
Revenue Growth (3Y) 3-year revenue CAGR	22.5%	19.3%	ARM
Revenue Growth (5Y) 5-year revenue CAGR	19.4%	23.5%	TSM
EPS Growth (YoY) Year-over-year EPS growth	13.3%	49.8%	TSM
EPS Growth (3Y) 3-year EPS CAGR	18.6%	20.5%	TSM
EPS Growth (5Y) 5-year EPS CAGR	17.5%	27.7%	TSM

Balance Sheet & Risk

Compare financial stability and debt levels

ARM: 3TSM: 2

Metric	ARM	TSM	Winner
Debt/Equity Debt to equity ratio	0.05	0.17	ARM
Current Ratio Current assets to current liabilities	6.00	2.49	ARM
Quick Ratio Quick assets to current liabilities	6.00	2.31	ARM
Interest Coverage EBIT to interest expense	0.00	738.60	TSM
Beta Stock volatility vs market	3.41	1.26	TSM

Summary

TSM wins 3-1

Valuation

TSM

Profitability

TSM

Growth

TSM

Balance Sheet

ARM

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

Related Comparisons

Take Your Analysis Further

Dive deeper into ARM and TSM with Screenerhub. Access advanced screening tools, set up monitoring alerts, and discover more investment opportunities.

Embed This Comparison

Free

Add this comparison widget to your blog or website:

Compare ARM vs TSM on stockvs.app

<a href="https://stockvs.app/ARM/vs/TSM" target="_blank" rel="noopener noreferrer" style="display: inline-flex; align-items: center; gap: 8px; padding: 8px 16px; background: linear-gradient(135deg, #3b82f6, #8b5cf6); color: white; text-decoration: none; border-radius: 8px; font-family: system-ui, sans-serif; font-size: 14px; font-weight: 500;">
  <svg width="16" height="16" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"><path d="M18 20V10"/><path d="M12 20V4"/><path d="M6 20v-6"/></svg>
  Compare ARM vs TSM on stockvs.app
</a>