NVIDIA Corporation (NVDA) vs Taiwan Semiconductor Manufacturing Company Ltd. (TSM)

NVIDIA Corporation and Taiwan Semiconductor Manufacturing Company Ltd. are both Semiconductors companies. NVIDIA Corporation is the larger, with a market value of $5.44T against $2.36T — 2.3× the size. NVIDIA Corporation trades at the lower P/E: 28.3× against 32.5×. NVIDIA Corporation grew revenue faster over the last twelve months: 83.4% against 35.6%. NVIDIA Corporation has the higher net margin (63.7% vs 49.9%) and the higher return on invested capital (76.2% vs 39.7%). Both pay a dividend; Taiwan Semiconductor Manufacturing Company Ltd. yields more (1.64% vs 0.02%). Across the 23 metrics below, NVIDIA Corporation leads on 17 and Taiwan Semiconductor Manufacturing Company Ltd. on 6.

Valuation

Metric NVDA TSM Semiconductors median
P/E 28.31 32.51 49.41
P/S 17.97 16.50 8.58
P/B 23.78 11.39 5.49
Price to free cash flow 42.87 65.78 47.02
EV/EBITDA 26.73 22.33 30.78
EV/Sales 17.75 15.93 8.79
Earnings yield 3.53% 3.08% 0.62%
Free cash flow yield 2.33% 1.52% 0.59%

Profitability

Metric NVDA TSM Semiconductors median
Gross margin 74.67% 64.20% 52.25%
Operating margin 65.21% 56.05% 4.85%
Net margin 63.66% 49.88% 4.77%
Free cash flow margin 41.92% 25.08% 8.65%
Return on equity 117.21% 39.78% 3.11%
Return on assets 83.68% 26.93% 1.91%
Return on invested capital 76.24% 39.72% 2.46%

Growth

Metric NVDA TSM Semiconductors median
Revenue growth (TTM) 83.38% 35.61% 16.66%
EPS growth (last fiscal year) 66.67% 51.28% —
Revenue growth, 5-year CAGR 66.90% 20.55% 5.60%
Net income growth, 5-year CAGR 94.33% 24.37% 0.00%

Health

Metric NVDA TSM Semiconductors median
Debt to equity 0.14 0.16 0.05
Current ratio 4.59 2.46 3.35
Net debt to EBITDA (0.41) (0.79) 0.58

Dividend

Metric NVDA TSM Semiconductors median
Dividend yield 0.02% 1.64% 1.93%
Payout ratio 0.04 0.30 0.00

Size

Metric NVDA TSM Semiconductors median
Market cap 5.44t 2.36t 5.67b

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