Which has the lower trailing P/E, MSFT or TSM?

MSFT has the lower trailing P/E: MSFT trades at 27.61 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, MSFT or TSM?

Over the past five years, TSM grew revenue faster — MSFT at a 14.57% CAGR versus TSM at 22.50%.

Does MSFT or TSM pay a bigger dividend?

MSFT yields 0.74% and TSM yields 0.82% based on trailing dividends and the latest price.

Is MSFT or TSM more profitable?

TSM runs the higher net margin — MSFT at 40.31% versus TSM at 50.32%.

How have MSFT and TSM total returns compared?

Over the past 10 years, MSFT delivered 25.72% and TSM delivered 33.49% annualized total return. Past performance doesn't predict future results.

Microsoft Corporation (MSFT) vs Taiwan Semiconductor Manufacturing Company Limited (TSM)

A side-by-side comparison of Microsoft 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.

MSFT

Microsoft Corporation

$3.68T

$495.63TechnologyDelayed quote: Sep 11, 2026, 4:00 PM EDT

TSM

Taiwan Semiconductor Manufacturing Company Limited

$2.25T

$433.24TechnologyDelayed quote: Sep 11, 2026, 4:00 PM EDT

Total return — MSFT vs TSM

growth of $100 · dividends reinvested · last 10y

MSFT +874.1% (+25.6%/yr)TSM +1624.5% (+32.9%/yr)TSM compounded faster over this window

MSFT TSM

MSFT vs TSM: by the numbers

•MSFT is the larger company ($3.68T vs $2.25T market cap).
•MSFT trades at the lower trailing earnings multiple (27.61 vs 31.37 P/E), one valuation lens rather than an overall verdict.
•TSM converts more revenue to profit (50.32% vs 40.31% net margin).
•TSM grew revenue faster over the past five years (22.50% vs 14.57% CAGR).
•TSM pays the higher dividend yield (0.82% vs 0.74%).

Metrics side by side

Valuation

Metric	MSFT	TSM
P/E ratio	27.61	31.37
Forward P/E	25.13	N/A
P/S ratio	11.09	15.88
P/B ratio	8.32	11.14
EV / EBITDA	19.55	21.58
FCF yield	1.82%	1.68%

Profitability

Metric	MSFT	TSM
Gross margin	67.94%	64.17%
Operating margin	46.78%	55.97%
Net margin	40.31%	50.32%
ROE	30.23%	35.29%
ROIC	20.90%	27.56%

Dividends

Metric	MSFT	TSM
Dividend yield	0.74%	0.82%
Payout ratio	20.28%	25.31%

Growth (annualized)

Metric	MSFT	TSM
Revenue CAGR (5Y)	14.57%	22.50%
EPS CAGR (5Y)	17.26%	25.67%
FCF CAGR (5Y)	3.60%	33.46%
Total return CAGR (5Y)	11.66%	30.04%

Frequently asked

Which has the lower trailing P/E, MSFT or TSM?: MSFT has the lower trailing P/E: MSFT trades at 27.61 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, MSFT or TSM?: Over the past five years, TSM grew revenue faster — MSFT at a 14.57% CAGR versus TSM at 22.50%.
Does MSFT or TSM pay a bigger dividend?: MSFT yields 0.74% and TSM yields 0.82% based on trailing dividends and the latest price.
Is MSFT or TSM more profitable?: TSM runs the higher net margin — MSFT at 40.31% versus TSM at 50.32%.
How have MSFT and TSM total returns compared?: Over the past 10 years, MSFT delivered 25.72% and TSM delivered 33.49% annualized total return. Past performance doesn't predict future results.

Go deeper

Full MSFT analysis Full TSM analysis Interactive comparison tool

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.