Which stock is better: ASML or TSM?

The comparison between ASML Holding N.V. (ASML) 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 ASML vs TSM?

ASML has a P/E ratio of 42.18, while TSM has a P/E ratio of 24.63. A lower P/E ratio may indicate a more attractive valuation.

What is the market cap difference between ASML and TSM?

ASML has a market cap of approximately 632.7B, while TSM has a market cap of approximately 2.1T.

ASML vs TSM

Name: ASML Stock
Brand: ASML Holding N.V.
Price: 1641.52 USD
Availability: InStock

In the past 12 months, ASML returned +61% while TSM gained 38%.

Valuation Growth Profitability Balance Sheet Performance

ASML

ASML Holding N.V.

$1,641.52

2.5%(1M)

Market Cap632.7B

Technology

Semiconductors

P/E Ratio42.18

ROE63.9%

P/B Ratio25.65

Dividend Yield0.5%

TSM

Taiwan Semiconductor Manufacturing Company Limited

$412.61

-1.2%(1M)

Market Cap2.1T

Technology

Semiconductors

P/E Ratio24.63

ROE41.2%

P/B Ratio8.97

Dividend Yield1.0%

Performance Comparison

Historical returns across multiple timeframes

ASML leads 5/8

ASML

ASML Holding N.V.

+61.0%

1Y Return

TSM

Taiwan Semiconductor Manufacturing Company Limited

+37.6%

1Y Return

ASML

TSM

Short Term

1M-6M

+4.3%

Medium Term

YTD-1Y

+57.2%

Long Term

3Y-10Y

+619.9%

Valuation

Compare price multiples and valuation ratios

ASML: 1TSM: 4

Metric	ASML	TSM	Winner
P/E Ratio Price to earnings ratio	42.18	24.63	TSM
Forward P/E Forward price to earnings ratio	0.00	0.00	Tie
P/S Ratio Price to sales ratio	14.42	12.69	TSM
P/B Ratio Price to book ratio	25.65	8.97	TSM
P/FCF Ratio Price to free cash flow ratio	26.93	41.78	ASML
EV/EBITDA Enterprise value to EBITDA	34.35	16.39	TSM
PEG Ratio Price/earnings to growth ratio	0.00	0.00	Tie

Profitability

Compare profit margins and returns on capital

ASML: 2TSM: 4

Metric	ASML	TSM	Winner
Gross Margin Gross profit margin	54.3%	65.8%	TSM
Operating Margin Operating profit margin	38.6%	57.9%	TSM
Net Margin Net profit margin	34.1%	51.5%	TSM
ROE Return on equity	63.9%	41.2%	ASML
ROA Return on assets	22.8%	25.3%	TSM
ROIC Return on invested capital	37.2%	28.8%	ASML

Growth

Compare revenue and earnings growth rates

ASML: 1TSM: 5

Metric	ASML	TSM	Winner
Revenue Growth (YoY) Year-over-year revenue growth	15.6%	33.0%	TSM
Revenue Growth (3Y) 3-year revenue CAGR	15.6%	19.3%	TSM
Revenue Growth (5Y) 5-year revenue CAGR	18.5%	23.5%	TSM
EPS Growth (YoY) Year-over-year EPS growth	28.4%	49.1%	TSM
EPS Growth (3Y) 3-year EPS CAGR	21.4%	20.3%	ASML
EPS Growth (5Y) 5-year EPS CAGR	25.6%	27.6%	TSM

Balance Sheet & Risk

Compare financial stability and debt levels

ASML: 2TSM: 3

Metric	ASML	TSM	Winner
Debt/Equity Debt to equity ratio	0.09	0.14	ASML
Current Ratio Current assets to current liabilities	1.49	2.58	TSM
Quick Ratio Quick assets to current liabilities	1.01	2.37	TSM
Interest Coverage EBIT to interest expense	0.00	497.13	TSM
Beta Stock volatility vs market	1.30	1.38	ASML

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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