Contrasting Taiwan Semiconductor Manufacturing (NYSE:TSM) and Its Rivals

Taiwan Semiconductor Manufacturing (NYSE: TSM) is one of 109 public companies in the “Semiconductors” industry, but how does it compare to its peers? We will compare Taiwan Semiconductor Manufacturing to related companies based on the strength of its analyst recommendations, dividends, valuation, risk, profitability, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Taiwan Semiconductor Manufacturing and its peers, 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 924 4760 8725 361 2.58

Taiwan Semiconductor Manufacturing currently has a consensus price target of $27.00, suggesting a potential downside of 35.28%. As a group, “Semiconductors” companies have a potential upside of 9.16%. Given Taiwan Semiconductor Manufacturing’s peers stronger consensus rating and higher probable upside, analysts plainly believe Taiwan Semiconductor Manufacturing has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Taiwan Semiconductor Manufacturing and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Taiwan Semiconductor Manufacturing $29.43 billion $10.24 billion 19.50
Taiwan Semiconductor Manufacturing Competitors $4.28 billion $517.06 million 44.60

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

Volatility & Risk

Taiwan Semiconductor Manufacturing has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing’s peers have a beta of 0.97, meaning that their average stock price is 3% less volatile than the S&P 500.

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 55.3% of their earnings in the form of a dividend. Taiwan Semiconductor Manufacturing has raised its dividend for 2 consecutive years. Taiwan Semiconductor Manufacturing is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

19.4% of Taiwan Semiconductor Manufacturing shares are held by institutional investors. Comparatively, 65.4% of shares of all “Semiconductors” companies are held by institutional investors. 1.1% of Taiwan Semiconductor Manufacturing shares are held by insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Taiwan Semiconductor Manufacturing and its peers’ 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 -44.26% 0.35% 0.34%

Summary

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

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.

Receive News & Ratings for Taiwan Semiconductor Manufacturing Company Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Taiwan Semiconductor Manufacturing Company Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply