Alphabet Inc. (GOOGL) vs Taiwan Semiconductor Manufacturing Company Limited (TSM)
A side-by-side comparison of Alphabet Inc. and Taiwan Semiconductor Manufacturing Company Limited across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 28, 2026. Differences are shown without an overall score or investment verdict.
Different business models: GOOGL is classified in Communication Services; TSM is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
GOOGL
Alphabet Inc.
$333.71Communication ServicesDelayed quote: Jul 28, 2026, 4:00 PM EDT
TSM
Taiwan Semiconductor Manufacturing Company Limited
$392.31TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — GOOGL vs TSM
growth of $100 · dividends reinvested · last 22yGOOGL +13026.4%TSM +12561.3%GOOGL compounded faster
GOOGL TSM
GOOGL vs TSM: by the numbers
- •GOOGL is the larger company ($4.04T vs $2.03T market cap).
- •GOOGL trades at the lower trailing earnings multiple (16.40 vs 28.90 P/E), one valuation lens rather than an overall verdict.
- •GOOGL converts more revenue to profit (54.76% vs 50.32% net margin).
- •TSM grew revenue faster over the past five years (22.50% vs 15.15% CAGR).
- •TSM pays the higher dividend yield (0.88% vs 0.26%).
Metrics side by side
Valuation
| Metric | GOOGL | TSM |
|---|---|---|
| P/E ratio | 16.40 | 28.90 |
| Forward P/E | 16.71 | N/A |
| P/S ratio | 9.01 | 14.63 |
| P/B ratio | 6.28 | 10.26 |
| PEG ratio | 0.84 | 0.65 |
| EV / EBITDA | 23.57 | 19.80 |
| FCF yield | 1.05% | 1.82% |
Profitability
| Metric | GOOGL | TSM |
|---|---|---|
| Gross margin | 60.90% | 64.17% |
| Operating margin | 33.12% | 55.97% |
| Net margin | 54.76% | 50.32% |
| ROE | 38.13% | 35.29% |
| ROIC | 21.82% | 25.10% |
Dividends
| Metric | GOOGL | TSM |
|---|---|---|
| Dividend yield | 0.26% | 0.88% |
| Payout ratio | 7.79% | 32.94% |
Growth (annualized)
| Metric | GOOGL | TSM |
|---|---|---|
| Revenue CAGR (5Y) | 15.15% | 22.50% |
| EPS CAGR (5Y) | 29.81% | 25.67% |
| FCF CAGR (5Y) | 11.33% | 33.46% |
| Total return CAGR (5Y) | 20.10% | 29.33% |
Frequently asked
- Which has the lower trailing P/E, GOOGL or TSM?
- GOOGL has the lower trailing P/E: GOOGL trades at 16.40 and TSM at 28.90. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, GOOGL or TSM?
- Over the past five years, TSM grew revenue faster — GOOGL at a 15.15% CAGR versus TSM at 22.50%.
- Does GOOGL or TSM pay a bigger dividend?
- GOOGL yields 0.26% and TSM yields 0.88% based on trailing dividends and the latest price.
- Is GOOGL or TSM more profitable?
- GOOGL runs the higher net margin — GOOGL at 54.76% versus TSM at 50.32%.
- How have GOOGL and TSM total returns compared?
- Over the past 10 years, GOOGL delivered 24.08% and TSM delivered 32.46% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Alphabet P/E ratioTaiwan Semiconductor Manufacturing P/E ratioAlphabet dividend yieldTaiwan Semiconductor Manufacturing dividend yieldAlphabet ROETaiwan Semiconductor Manufacturing ROEAlphabet operating marginTaiwan Semiconductor Manufacturing operating marginAlphabet revenue growthTaiwan Semiconductor Manufacturing revenue growthAlphabet free cash flowTaiwan Semiconductor Manufacturing free cash flow
Alphabet & Taiwan Semiconductor Manufacturing appear in these rankings
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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 28, 2026.