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

MSFT has the lower trailing P/E: MSFT trades at 23.16 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, MSFT or TSM?

Over the past five years, TSM grew revenue faster — MSFT at a 14.75% CAGR versus TSM at 22.50%.

Does MSFT or TSM pay a bigger dividend?

MSFT yields 0.91% and TSM yields 0.88% 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 50.32%.

How have MSFT and TSM total returns compared?

Over the past 10 years, MSFT delivered 22.86% and TSM delivered 32.46% 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 July 28, 2026. Differences are shown without an overall score or investment verdict.

MSFT

Microsoft Corporation

$2.92T

$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT

TSM

Taiwan Semiconductor Manufacturing Company Limited

$2.03T

$392.31TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT

Total return — MSFT vs TSM

growth of $100 · dividends reinvested · last 29y

MSFT +3328.2%TSM +14454.2%TSM compounded faster

MSFT TSM

MSFT vs TSM: by the numbers

•MSFT is the larger company ($2.92T vs $2.03T market cap).
•MSFT trades at the lower trailing earnings multiple (23.16 vs 28.90 P/E), one valuation lens rather than an overall verdict.
•TSM converts more revenue to profit (50.32% vs 39.34% net margin).
•TSM grew revenue faster over the past five years (22.50% vs 14.75% CAGR).
•MSFT pays the higher dividend yield (0.91% vs 0.88%).

Metrics side by side

Valuation

Metric	MSFT	TSM
P/E ratio	23.16	28.90
Forward P/E	22.87	N/A
P/S ratio	9.10	14.63
P/B ratio	6.99	10.26
PEG ratio	2.34	0.65
EV / EBITDA	15.53	19.80
FCF yield	2.52%	1.82%

Profitability

Metric	MSFT	TSM
Gross margin	68.31%	64.17%
Operating margin	46.80%	55.97%
Net margin	39.34%	50.32%
ROE	30.22%	35.29%
ROIC	21.63%	25.10%

Dividends

Metric	MSFT	TSM
Dividend yield	0.91%	0.88%
Payout ratio	25.99%	32.94%

Growth (annualized)

Metric	MSFT	TSM
Revenue CAGR (5Y)	14.75%	22.50%
EPS CAGR (5Y)	18.68%	25.67%
FCF CAGR (5Y)	6.27%	33.46%
Total return CAGR (5Y)	7.19%	29.33%

Frequently asked

Which has the lower trailing P/E, MSFT or TSM?: MSFT has the lower trailing P/E: MSFT trades at 23.16 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, MSFT or TSM?: Over the past five years, TSM grew revenue faster — MSFT at a 14.75% CAGR versus TSM at 22.50%.
Does MSFT or TSM pay a bigger dividend?: MSFT yields 0.91% and TSM yields 0.88% 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 50.32%.
How have MSFT and TSM total returns compared?: Over the past 10 years, MSFT delivered 22.86% and TSM delivered 32.46% 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 July 28, 2026.