COMPARE · Data as of August 27, 2026
TSEM vs TSM
Verdict: Side-by-side breakdown using the Bull Rankings model. TSEM scored 24.0, TSM scored 68.9 — TSM leads.
Compare another set
TSEM
Tower Semiconductor Ltd.
24
$219.85 · $24.8B
fundamentals as of
Score gap
44.9
TSM leads
TSM
Taiwan Semiconductor Manufacturing Company Limited
68.9
$427.30 · $2.2T
At a glance · who leads each dimension, on the model's own rules
- Fastest growthTSM+33.9%
- Strongest balance sheetTSEM0.05
- Highest qualityTSM90 / 100
Side by side · every name on one set of axes
The model, pillar by pillar (0–100 each)
TSEM
stronger →← stronger
TSM
46
Qualityreturns · margins · balance sheet
90
60
Growthrevenue & earnings expansion
94
3
Valuevaluation vs sector peers
53
TSM is stronger on 3 of 3 pillars.
Fundamentals, head-to-head
TSEM
TSM
-$49mF
FCF
$35.7bA
+9.1%B
Rev
+33.9%A
0.05A-
D/E
0.17B+
15.9xC
P/S
—
5.44D
PEG
1.00B+
—
P/E
31.9xB
Winner per row is the stronger grade; where grades tie, the better figure breaks it. A true tie or a missing value shows no highlight.
Valuation · DCF cross-check
TSEM
TSM
—
Price vs fair valuelower is cheaper
219% above
—
Growth the price implies10-yr FCF · lower = less priced in
~47%/yr
—
1-yr DCF upside
-76%
—
5-yr DCF upside
-69%
—
10-yr DCF upside
-54%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
TSEM
No notable signals flagged.
TSM
Why this score
- Raising its dividend
- Durable high returns
- Foreign reporter (TWD)
The companies
TSEMTower Semiconductor Ltd.
Why now
Semiconductors · market cap $24.8b. Down 31% from 52-week high of $319.94 — deep drawdown territory. 7 sell-side analysts publish a mean 1-yr target of $321.32 (implying +46% upside).
Moat
Net margin 14% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. Semiconductor moat is process-design IP plus customer qualification timelines — once designed in, the company captures multiple product cycles before a competitor can displace.
Risk
Free cash flow is negative (-$49m) — capital raises or debt issuance likely required; dilution / leverage risk. Trailing P/E 87.2x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Down 31% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
TSMTaiwan Semiconductor Manufacturing Company Limited
Why now
Semiconductors · market cap $2.2T. 11% off the 52-week high of $479.00. Revenue growing +34% — in hypergrowth territory. 18 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $554.45 (implying +30% upside).
Moat
Net margin 40% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 27% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $2.2T market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk
Trailing P/E 32x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. P/S 15.9x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard. Semiconductor cyclicality — inventory corrections compress margins faster than analysts model. Monitor channel inventory and book-to-bill ratios as leading indicators.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Where TSEM and TSM diverge
On the headline score the gap is 44.9 points in favor of TSM. The widest single difference is Value, where TSM leads by 49.7 points.
- ValueTSEM 3.4 · TSM 53.1TSM +49.7
- QualityTSEM 46.3 · TSM 90.2TSM +43.9
- GrowthTSEM 59.8 · TSM 93.9TSM +34.1
Pillars run 0–100 against sector peers, so a score is a statement about a company relative to its own industry rather than to the other name here. A wide Value gap usually means the market already prices the difference in quality or growth — which is the trade-off this comparison comes down to.