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 September 10, 2026. Differences are shown without an overall score or investment verdict.

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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 10y
GOOGL +744.3% (+23.8%/yr)TSM +1624.5% (+32.9%/yr)TSM compounded faster over this window
05001k2k2kStart $10020182020202220242026$844$1,724
GOOGL TSM

GOOGL vs TSM: by the numbers

  • GOOGL is the larger company ($4.10T vs $2.25T market cap).
  • GOOGL trades at the lower trailing earnings multiple (17.00 vs 31.37 P/E), one valuation lens rather than an overall verdict.
  • GOOGL converts more revenue to profit (54.77% 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 (0.82% vs 0.26%).

Metrics side by side

Valuation

MetricGOOGLTSM
P/E ratio17.0031.37
Forward P/E16.46N/A
P/S ratio9.1915.88
P/B ratio6.4011.14
EV / EBITDA24.0321.58
FCF yield1.30%1.68%

Profitability

MetricGOOGLTSM
Gross margin60.90%64.17%
Operating margin33.11%55.97%
Net margin54.77%50.32%
ROE38.13%35.29%
ROIC15.14%27.56%

Dividends

MetricGOOGLTSM
Dividend yield0.26%0.82%
Payout ratio4.27%25.31%

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)18.97%30.04%

Frequently asked

Which has the lower trailing P/E, GOOGL or TSM?
GOOGL has the lower trailing P/E: GOOGL trades at 17.00 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, 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 0.82% based on trailing dividends and the latest price.
Is GOOGL or TSM more profitable?
GOOGL runs the higher net margin — GOOGL at 54.77% versus TSM at 50.32%.
How have GOOGL and TSM total returns compared?
Over the past 10 years, GOOGL delivered 23.89% and TSM delivered 33.49% 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 September 10, 2026.