Taiwan Semiconductor Manufacturing (NYSE: TSM) is one of 104 public companies in the “Semiconductors” industry, but how does it weigh in compared to its peers? We will compare Taiwan Semiconductor Manufacturing to related businesses based on the strength of its analyst recommendations, valuation, dividends, institutional ownership, earnings, risk and profitability.
Risk and Volatility
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 1.05, meaning that their average stock price is 5% more volatile than the S&P 500.
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 | -46.43% | 1.05% | 0.79% |
Insider and Institutional Ownership
19.4% of Taiwan Semiconductor Manufacturing shares are held by institutional investors. Comparatively, 65.2% of shares of all “Semiconductors” companies are held by institutional investors. 1.1% of Taiwan Semiconductor Manufacturing shares are held by company insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Taiwan Semiconductor Manufacturing and its peers revenue, earnings per share (EPS) and valuation.
| Gross Revenue | NetIncome | Price/Earnings Ratio | |
| Taiwan Semiconductor Manufacturing | $29,434.00 | $10,238.10 | 19.70 |
| Taiwan Semiconductor Manufacturing Competitors | $4,268.18 | $517.81 | 20.78 |
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.
Analyst Ratings
This is a summary of current recommendations for Taiwan Semiconductor Manufacturing and its peers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Taiwan Semiconductor Manufacturing | 0 | 5 | 2 | 0 | 2.29 |
| Taiwan Semiconductor Manufacturing Competitors | 920 | 4781 | 8687 | 363 | 2.58 |
Taiwan Semiconductor Manufacturing presently has a consensus price target of $27.00, suggesting a potential downside of 35.94%. As a group, “Semiconductors” companies have a potential upside of 0.46%. Given Taiwan Semiconductor Manufacturing’s peers stronger consensus rating and higher possible upside, analysts plainly believe Taiwan Semiconductor Manufacturing has less favorable growth aspects than its peers.
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 56.1% 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.
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.
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