Vishay Intertechnology (VSH) vs. Taiwan Semiconductor Manufacturing (TSM) Head-To-Head Analysis
Vishay Intertechnology (NYSE: VSH) and Taiwan Semiconductor Manufacturing (NYSE:TSM) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitabiliy, institutional ownership, valuation and dividends.
Risk and Volatility
Vishay Intertechnology has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Valuation and Earnings
This table compares Vishay Intertechnology and Taiwan Semiconductor Manufacturing’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vishay Intertechnology||$2.36 billion||1.12||$376.43 million||$0.37||48.79|
|Taiwan Semiconductor Manufacturing||$31.82 billion||5.84||$20.60 billion||$2.16||16.60|
Taiwan Semiconductor Manufacturing has higher revenue and earnings than Vishay Intertechnology. Taiwan Semiconductor Manufacturing is trading at a lower price-to-earnings ratio than Vishay Intertechnology, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Vishay Intertechnology and Taiwan Semiconductor Manufacturing, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Taiwan Semiconductor Manufacturing||0||3||2||0||2.40|
Vishay Intertechnology presently has a consensus price target of $17.00, suggesting a potential downside of 5.82%. Taiwan Semiconductor Manufacturing has a consensus price target of $27.50, suggesting a potential downside of 23.29%. Given Vishay Intertechnology’s stronger consensus rating and higher possible upside, research analysts clearly believe Vishay Intertechnology is more favorable than Taiwan Semiconductor Manufacturing.
Insider and Institutional Ownership
19.8% of Taiwan Semiconductor Manufacturing shares are owned by institutional investors. 7.9% of Vishay Intertechnology shares are owned by insiders. Comparatively, 1.1% of Taiwan Semiconductor Manufacturing shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Vishay Intertechnology and Taiwan Semiconductor Manufacturing’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Taiwan Semiconductor Manufacturing||36.11%||25.75%||19.07%|
Vishay Intertechnology pays an annual dividend of $0.25 per share and has a dividend yield of 1.4%. Taiwan Semiconductor Manufacturing pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. Vishay Intertechnology pays out 67.6% of its earnings in the form of a dividend. Taiwan Semiconductor Manufacturing pays out 42.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Taiwan Semiconductor Manufacturing has raised its dividend for 2 consecutive years. Taiwan Semiconductor Manufacturing is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Taiwan Semiconductor Manufacturing beats Vishay Intertechnology on 12 of the 17 factors compared between the two stocks.
Vishay Intertechnology Company Profile
Vishay Intertechnology, Inc. is a global manufacturer and supplier of discrete semiconductors and passive components. The Company operates through five product segments: MOSFETs, Diodes, Optoelectronic Components, Resistors & Inductors and Capacitors. MOSFETs segment offers low-voltage TrenchFET MOSFETs and high-voltage MOSFETs. Diodes segment’s products include rectifiers, small signal diodes, protection diodes, thyristors/silicon-controlled rectifiers (SCRs) and power modules. Optoelectronic Components segment includes infrared (IR) emitters and detectors, IR remote control receivers, optocouplers, solid-state relays, optical sensors, light-emitting diodes (LEDs), 7-segment displays and IR data transceiver modules (IrDA). Resistors and Inductors segment manufactures various types of fixed resistors, both in discrete and network forms, as well as various variable types. Capacitors segment manufactures products based on capacitor technologies.
Taiwan Semiconductor Manufacturing Company Profile
Taiwan Semiconductor Manufacturing Company Limited (TSMC) is a semiconductor foundry. The Company is engaged in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks. It operates through foundry segment. The foundry segment is engaged in manufacturing, selling, packaging, testing and computer-aided design of integrated circuits (IC) and other semiconductor devices and the manufacturing of masks. It operates three 12-inch wafer fabs, four eight-inch wafer fabs, one six-inch wafer fab (fab 2) and two backend fabs (advanced backend fab 1 and 2). It also manages two eight-inch fabs at its subsidiaries, WaferTech, LLC in the United States and TSMC China Company Limited. Its exploratory work focuses on transistors and technologies, such as three dimensional (3D) structures, strained-layer complementary metal-oxide semiconductor (CMOS), high-mobility materials and 3D IC devices.
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