Taiwan Semiconductor Manufacturing (NYSE: TSM) is one of 104 publicly-traded companies in the “Semiconductors” industry, but how does it compare to its competitors? We will compare Taiwan Semiconductor Manufacturing to related companies based on the strength of its earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Profitability

This table compares Taiwan Semiconductor Manufacturing and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Taiwan Semiconductor Manufacturing 35.71% 24.84% 17.78%
Taiwan Semiconductor Manufacturing Competitors -46.19% 1.37% 0.86%

Analyst Ratings

This is a summary of current ratings and price targets for Taiwan Semiconductor Manufacturing and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Taiwan Semiconductor Manufacturing 0 5 2 0 2.29
Taiwan Semiconductor Manufacturing Competitors 910 4730 8612 358 2.58

Taiwan Semiconductor Manufacturing presently has a consensus price target of $27.00, suggesting a potential downside of 34.34%. As a group, “Semiconductors” companies have a potential upside of 10.02%. Given Taiwan Semiconductor Manufacturing’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Taiwan Semiconductor Manufacturing has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Taiwan Semiconductor Manufacturing and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Taiwan Semiconductor Manufacturing $32.32 billion $20.86 billion 19.22
Taiwan Semiconductor Manufacturing Competitors $4.29 billion $1.35 billion 81.88

Taiwan Semiconductor Manufacturing has higher revenue and earnings than its competitors. Taiwan Semiconductor Manufacturing is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Taiwan Semiconductor Manufacturing pays an annual dividend of $0.92 per share and has a dividend yield of 2.2%. Taiwan Semiconductor Manufacturing pays out 43.0% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.4% and pay out 58.3% of their earnings in the form of a dividend. Taiwan Semiconductor Manufacturing has increased its dividend for 2 consecutive years. Taiwan Semiconductor Manufacturing is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility & Risk

Taiwan Semiconductor Manufacturing has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing’s competitors have a beta of 1.07, meaning that their average share price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

19.3% of Taiwan Semiconductor Manufacturing shares are owned by institutional investors. Comparatively, 65.3% of shares of all “Semiconductors” companies are owned by institutional investors. 1.1% of Taiwan Semiconductor Manufacturing shares are owned by insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Taiwan Semiconductor Manufacturing competitors beat Taiwan Semiconductor Manufacturing on 8 of the 15 factors compared.

About Taiwan Semiconductor Manufacturing

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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