TSM vs. NVDA, AVGO, AMD, AMAT, TXN, MU, INTC, ARM, ADI, and NXPI
Should you be buying Taiwan Semiconductor Manufacturing stock or one of its competitors? The main competitors of Taiwan Semiconductor Manufacturing include NVIDIA (NVDA), Broadcom (AVGO), Advanced Micro Devices (AMD), Applied Materials (AMAT), Texas Instruments (TXN), Micron Technology (MU), Intel (INTC), ARM (ARM), Analog Devices (ADI), and NXP Semiconductors (NXPI). These companies are all part of the "semiconductors & related devices" industry.
NVIDIA (NASDAQ:NVDA) and Taiwan Semiconductor Manufacturing (NYSE:TSM) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, community ranking, risk, valuation, dividends and media sentiment.
NVIDIA received 2130 more outperform votes than Taiwan Semiconductor Manufacturing when rated by MarketBeat users. Likewise, 69.05% of users gave NVIDIA an outperform vote while only 67.42% of users gave Taiwan Semiconductor Manufacturing an outperform vote.
65.3% of NVIDIA shares are held by institutional investors. Comparatively, 16.5% of Taiwan Semiconductor Manufacturing shares are held by institutional investors. 4.2% of NVIDIA shares are held by company insiders. Comparatively, 1.1% of Taiwan Semiconductor Manufacturing shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
NVIDIA has a net margin of 53.40% compared to NVIDIA's net margin of 38.15%. Taiwan Semiconductor Manufacturing's return on equity of 110.60% beat NVIDIA's return on equity.
NVIDIA has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.
NVIDIA presently has a consensus target price of $1,123.49, suggesting a potential upside of 2.48%. Taiwan Semiconductor Manufacturing has a consensus target price of $157.00, suggesting a potential upside of 3.95%. Given NVIDIA's higher possible upside, analysts plainly believe Taiwan Semiconductor Manufacturing is more favorable than NVIDIA.
In the previous week, NVIDIA had 168 more articles in the media than Taiwan Semiconductor Manufacturing. MarketBeat recorded 192 mentions for NVIDIA and 24 mentions for Taiwan Semiconductor Manufacturing. NVIDIA's average media sentiment score of 0.79 beat Taiwan Semiconductor Manufacturing's score of 0.60 indicating that Taiwan Semiconductor Manufacturing is being referred to more favorably in the news media.
NVIDIA pays an annual dividend of $0.16 per share and has a dividend yield of 0.0%. Taiwan Semiconductor Manufacturing pays an annual dividend of $1.72 per share and has a dividend yield of 1.1%. NVIDIA pays out 0.9% of its earnings in the form of a dividend. Taiwan Semiconductor Manufacturing pays out 32.8% 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 1 consecutive years. Taiwan Semiconductor Manufacturing is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
NVIDIA has higher earnings, but lower revenue than Taiwan Semiconductor Manufacturing. Taiwan Semiconductor Manufacturing is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.
Summary
NVIDIA beats Taiwan Semiconductor Manufacturing on 17 of the 22 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TSM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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