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.

Compare
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.

Total returnGOOGL vs TSM

growth of $100 · dividends reinvested · last 22y
GOOGL +13026.4%TSM +12561.3%GOOGL compounded faster
05k10k15kStart $10020082012201620202024$13,126$12,661
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

MetricGOOGLTSM
P/E ratio16.4028.90
Forward P/E16.71N/A
P/S ratio9.0114.63
P/B ratio6.2810.26
PEG ratio0.840.65
EV / EBITDA23.5719.80
FCF yield1.05%1.82%

Profitability

MetricGOOGLTSM
Gross margin60.90%64.17%
Operating margin33.12%55.97%
Net margin54.76%50.32%
ROE38.13%35.29%
ROIC21.82%25.10%

Dividends

MetricGOOGLTSM
Dividend yield0.26%0.88%
Payout ratio7.79%32.94%

Growth (annualized)

MetricGOOGLTSM
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.

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.