Cisco Systems, Inc. (CSCO) vs Taiwan Semiconductor Manufacturing Company Limited (TSM)

TSM leads on 11 of 16 compared metrics.

A side-by-side comparison of Cisco Systems, Inc. and Taiwan Semiconductor Manufacturing Company Limited across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 14, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

Total return — CSCO vs TSM

growth of $100 · last 29y
CSCO +1233.7%TSM +7621.9%TSM compounded faster
Log scale — wide-divergence pair
101001k10kStart $10020022007201220172022$1,334$7,722
CSCO TSM

CSCO vs TSM: by the numbers

  • TSM is the larger company ($2.20T vs $477.31B market cap).
  • TSM trades at the lower earnings multiple (35.24 vs 40.37 P/E).
  • TSM converts more revenue to profit (46.90% vs 19.69% net margin).
  • TSM grew revenue faster over the past five years (22.49% vs 4.58% CAGR).
  • CSCO pays the higher dividend yield (1.36% vs 0.83%).

Which is better, CSCO or TSM?

Metric tally: CSCO 5 · TSM 11

It depends on what you're optimizing for:

ValueTSM(lower P/E)
GrowthTSM(faster 5Y revenue CAGR)
IncomeCSCO(higher dividend yield)
QualityTSM(higher ROIC)

Valuation

MetricCSCOTSM
P/E ratio40.3735.24
Forward P/E28.33
P/S ratio7.9516.45
P/B ratio9.8811.92
PEG ratio68.410.64
EV / EBITDA29.0720.78
FCF yield2.61%1.62%

Profitability

MetricCSCOTSM
Gross margin64.33%61.78%
Operating margin23.36%53.15%
Net margin19.69%46.90%
ROE24.47%33.98%
ROIC11.66%25.10%

Dividends

MetricCSCOTSM
Dividend yield1.36%0.83%
Payout ratio64.45%33.09%

Growth (annualized)

MetricCSCOTSM
Revenue CAGR (5Y)4.58%22.49%
EPS CAGR (5Y)-0.69%25.67%
FCF CAGR (5Y)-2.45%30.09%
Total return CAGR (5Y)20.60%30.87%

Frequently asked

Which is better, CSCO or TSM?
It depends on your goal. value: TSM (lower P/E); growth: TSM (faster 5Y revenue CAGR); income: CSCO (higher dividend yield); quality: TSM (higher ROIC). Across all compared metrics, TSM leads 11 to 5.
Is CSCO or TSM cheaper?
On trailing earnings, TSM is cheaper: CSCO trades at a 40.37 P/E and TSM at 35.24.
Which has grown faster, CSCO or TSM?
Over the past five years, TSM grew revenue faster — CSCO at a 4.58% CAGR versus TSM at 22.49%.
Does CSCO or TSM pay a bigger dividend?
CSCO yields 1.36% and TSM yields 0.83% based on trailing dividends and the latest price.
Is CSCO or TSM more profitable?
TSM runs the higher net margin — CSCO at 19.69% versus TSM at 46.90%.
Which has been the better investment, CSCO or TSM?
Over the past 10-year, TSM delivered the higher annualized total return — CSCO at 18.88% versus TSM at 35.19%. Past performance doesn't predict future results.

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 June 14, 2026.