Is MSFT or TSM cheaper?

On trailing earnings, MSFT is cheaper: MSFT trades at a 23.26 P/E and TSM at 35.24.

Which has grown faster, MSFT or TSM?

Over the past five years, TSM grew revenue faster — MSFT at a 14.75% CAGR versus TSM at 22.49%.

Does MSFT or TSM pay a bigger dividend?

MSFT yields 0.91% and TSM yields 0.83% based on trailing dividends and the latest price.

Is MSFT or TSM more profitable?

TSM runs the higher net margin — MSFT at 39.34% versus TSM at 46.90%.

Which has been the better investment, MSFT or TSM?

Over the past 10-year, TSM delivered the higher annualized total return — MSFT at 23.98% versus TSM at 35.19%. Past performance doesn't predict future results.

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

TSM leads on 9 of 16 compared metrics, though MSFT is the cheaper stock.

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 June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

MSFT

Microsoft Corporation

$2.90T

$390.74Technology

TSM

Taiwan Semiconductor Manufacturing Company Limited

$2.20T

$423.93Technology

Total return — MSFT vs TSM

growth of $100 · last 29y

MSFT +2148.2%TSM +7621.9%TSM compounded faster

MSFT TSM

MSFT vs TSM: by the numbers

•MSFT is the larger company ($2.90T vs $2.20T market cap).
•MSFT trades at the lower earnings multiple (23.26 vs 35.24 P/E).
•TSM converts more revenue to profit (46.90% vs 39.34% net margin).
•TSM grew revenue faster over the past five years (22.49% vs 14.75% CAGR).
•MSFT pays the higher dividend yield (0.91% vs 0.83%).

Which is better, MSFT or TSM?

Metric tally: MSFT 7 · TSM 9

It depends on what you're optimizing for:

ValueMSFT(lower P/E)

GrowthTSM(faster 5Y revenue CAGR)

IncomeMSFT(higher dividend yield)

QualityTSM(higher ROIC)

Valuation

Metric	MSFT	TSM
P/E ratio	23.26●	35.24
Forward P/E	20.11	—
P/S ratio	9.14●	16.45
P/B ratio	7.02●	11.92
PEG ratio	2.34	0.64●
EV / EBITDA	14.60●	20.78
FCF yield	2.51%●	1.62%

Profitability

Metric	MSFT	TSM
Gross margin	68.31%●	61.78%
Operating margin	46.80%	53.15%●
Net margin	39.34%	46.90%●
ROE	30.22%	33.98%●
ROIC	21.63%	25.10%●

Dividends

Metric	MSFT	TSM
Dividend yield	0.91%●	0.83%
Payout ratio	25.99%	33.09%

Growth (annualized)

Metric	MSFT	TSM
Revenue CAGR (5Y)	14.75%	22.49%●
EPS CAGR (5Y)	18.68%	25.67%●
FCF CAGR (5Y)	6.27%	30.09%●
Total return CAGR (5Y)	9.56%	30.87%●

Frequently asked

Which is better, MSFT or TSM?: It depends on your goal. value: MSFT (lower P/E); growth: TSM (faster 5Y revenue CAGR); income: MSFT (higher dividend yield); quality: TSM (higher ROIC). Across all compared metrics, TSM leads 9 to 7.
Is MSFT or TSM cheaper?: On trailing earnings, MSFT is cheaper: MSFT trades at a 23.26 P/E and TSM at 35.24.
Which has grown faster, MSFT or TSM?: Over the past five years, TSM grew revenue faster — MSFT at a 14.75% CAGR versus TSM at 22.49%.
Does MSFT or TSM pay a bigger dividend?: MSFT yields 0.91% and TSM yields 0.83% based on trailing dividends and the latest price.
Is MSFT or TSM more profitable?: TSM runs the higher net margin — MSFT at 39.34% versus TSM at 46.90%.
Which has been the better investment, MSFT or TSM?: Over the past 10-year, TSM delivered the higher annualized total return — MSFT at 23.98% versus TSM at 35.19%. 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 June 13, 2026.