Applied Materials, Inc. (AMAT) vs Taiwan Semiconductor Manufacturing Company Limited (TSM)
A side-by-side comparison of Applied Materials, Inc. and Taiwan Semiconductor Manufacturing Company Limited across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 29, 2026. Differences are shown without an overall score or investment verdict.
AMAT
Applied Materials, Inc.
$436.45TechnologyDelayed quote: Jul 29, 2026, 4:00 PM EDT
TSM
Taiwan Semiconductor Manufacturing Company Limited
$374.67TechnologyDelayed quote: Jul 29, 2026, 4:00 PM EDT
Total return — AMAT vs TSM
growth of $100 · dividends reinvested · last 29yAMAT +5354.0%TSM +13639.2%TSM compounded faster
AMAT TSM
AMAT vs TSM: by the numbers
- •TSM is the larger company ($1.94T vs $346.52B market cap).
- •TSM trades at the lower trailing earnings multiple (28.40 vs 44.78 P/E), one valuation lens rather than an overall verdict.
- •TSM converts more revenue to profit (50.32% vs 29.31% net margin).
- •TSM grew revenue faster over the past five years (22.50% vs 9.33% CAGR).
- •TSM pays the higher dividend yield (0.89% vs 0.40%).
Metrics side by side
Valuation
| Metric | AMAT | TSM |
|---|---|---|
| P/E ratio | 44.78 | 28.40 |
| Forward P/E | 38.79 | N/A |
| P/S ratio | 13.12 | 14.38 |
| P/B ratio | 15.92 | 10.09 |
| PEG ratio | 76.84 | 0.65 |
| EV / EBITDA | 42.09 | 19.45 |
| FCF yield | 1.57% | 1.86% |
Profitability
| Metric | AMAT | TSM |
|---|---|---|
| Gross margin | 48.96% | 64.17% |
| Operating margin | 29.51% | 55.97% |
| Net margin | 29.31% | 50.32% |
| ROE | 35.58% | 35.29% |
| ROIC | 21.96% | 25.10% |
Dividends
| Metric | AMAT | TSM |
|---|---|---|
| Dividend yield | 0.40% | 0.89% |
| Payout ratio | 21.93% | 32.94% |
Growth (annualized)
| Metric | AMAT | TSM |
|---|---|---|
| Revenue CAGR (5Y) | 9.33% | 22.50% |
| EPS CAGR (5Y) | 17.13% | 25.67% |
| FCF CAGR (5Y) | 9.02% | 33.46% |
| Total return CAGR (5Y) | 29.36% | 29.50% |
Frequently asked
- Which has the lower trailing P/E, AMAT or TSM?
- TSM has the lower trailing P/E: AMAT trades at 44.78 and TSM at 28.40. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, AMAT or TSM?
- Over the past five years, TSM grew revenue faster — AMAT at a 9.33% CAGR versus TSM at 22.50%.
- Does AMAT or TSM pay a bigger dividend?
- AMAT yields 0.40% and TSM yields 0.89% based on trailing dividends and the latest price.
- Is AMAT or TSM more profitable?
- TSM runs the higher net margin — AMAT at 29.31% versus TSM at 50.32%.
- How have AMAT and TSM total returns compared?
- Over the past 10 years, AMAT delivered 34.91% and TSM delivered 32.55% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Applied Materials P/E ratioTaiwan Semiconductor Manufacturing P/E ratioApplied Materials dividend yieldTaiwan Semiconductor Manufacturing dividend yieldApplied Materials ROETaiwan Semiconductor Manufacturing ROEApplied Materials operating marginTaiwan Semiconductor Manufacturing operating marginApplied Materials revenue growthTaiwan Semiconductor Manufacturing revenue growthApplied Materials free cash flowTaiwan Semiconductor Manufacturing free cash flow
Applied Materials & Taiwan Semiconductor Manufacturing appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified July 29, 2026.