Costco Wholesale Corporation (COST) vs Taiwan Semiconductor Manufacturing Company Limited (TSM)
A side-by-side comparison of Costco Wholesale Corporation and Taiwan Semiconductor Manufacturing Company Limited across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 11, 2026. Differences are shown without an overall score or investment verdict.
Different business models: COST is classified in Consumer Defensive; TSM is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
COST
Costco Wholesale Corporation
$904.77Consumer DefensiveDelayed quote: Sep 11, 2026, 4:00 PM EDT
TSM
Taiwan Semiconductor Manufacturing Company Limited
$433.24TechnologyDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — COST vs TSM
growth of $100 · dividends reinvested · last 10yCOST +544.2% (+20.5%/yr)TSM +1624.5% (+32.9%/yr)TSM compounded faster over this window
COST TSM
COST vs TSM: by the numbers
- •TSM is the larger company ($2.25T vs $401.25B market cap).
- •TSM trades at the lower trailing earnings multiple (31.37 vs 45.51 P/E), one valuation lens rather than an overall verdict.
- •TSM converts more revenue to profit (50.32% vs 3.01% net margin).
- •TSM grew revenue faster over the past five years (22.50% vs 9.48% CAGR).
- •TSM pays the higher dividend yield (0.82% vs 0.61%).
Metrics side by side
Valuation
| Metric | COST | TSM |
|---|---|---|
| P/E ratio | 45.51 | 31.37 |
| Forward P/E | 39.92 | N/A |
| P/S ratio | 1.37 | 15.88 |
| P/B ratio | 11.97 | 11.14 |
| EV / EBITDA | 28.32 | 21.58 |
| FCF yield | 2.19% | 1.68% |
Profitability
| Metric | COST | TSM |
|---|---|---|
| Gross margin | 12.88% | 64.17% |
| Operating margin | 3.82% | 55.97% |
| Net margin | 3.01% | 50.32% |
| ROE | 26.38% | 35.29% |
| ROIC | 19.01% | 27.56% |
Dividends
| Metric | COST | TSM |
|---|---|---|
| Dividend yield | 0.61% | 0.82% |
| Payout ratio | 27.87% | 25.31% |
Growth (annualized)
| Metric | COST | TSM |
|---|---|---|
| Revenue CAGR (5Y) | 9.48% | 22.50% |
| EPS CAGR (5Y) | 15.04% | 25.67% |
| FCF CAGR (5Y) | 4.95% | 33.46% |
| Total return CAGR (5Y) | 14.89% | 30.04% |
Frequently asked
- Which has the lower trailing P/E, COST or TSM?
- TSM has the lower trailing P/E: COST trades at 45.51 and TSM at 31.37. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, COST or TSM?
- Over the past five years, TSM grew revenue faster — COST at a 9.48% CAGR versus TSM at 22.50%.
- Does COST or TSM pay a bigger dividend?
- COST yields 0.61% and TSM yields 0.82% based on trailing dividends and the latest price.
- Is COST or TSM more profitable?
- TSM runs the higher net margin — COST at 3.01% versus TSM at 50.32%.
- How have COST and TSM total returns compared?
- Over the past 10 years, COST delivered 20.56% and TSM delivered 33.49% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Costco Wholesale P/E ratioTaiwan Semiconductor Manufacturing P/E ratioCostco Wholesale dividend yieldTaiwan Semiconductor Manufacturing dividend yieldCostco Wholesale ROETaiwan Semiconductor Manufacturing ROECostco Wholesale operating marginTaiwan Semiconductor Manufacturing operating marginCostco Wholesale revenue growthTaiwan Semiconductor Manufacturing revenue growthCostco Wholesale free cash flowTaiwan Semiconductor Manufacturing free cash flow
Costco Wholesale & 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 September 11, 2026.