Taiwan Semiconductor Manufacturing (TSM) & Its Rivals Financial Review

Taiwan Semiconductor Manufacturing (NYSE: TSM) is one of 104 public companies in the “Semiconductors” industry, but how does it contrast to its competitors? We will compare Taiwan Semiconductor Manufacturing to similar businesses based on the strength of its dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Dividends

Taiwan Semiconductor Manufacturing pays an annual dividend of $0.92 per share and has a dividend yield of 2.2%. Taiwan Semiconductor Manufacturing pays out 43.0% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.4% and pay out 57.7% of their earnings in the form of a dividend. Taiwan Semiconductor Manufacturing has increased its dividend for 2 consecutive years. Taiwan Semiconductor Manufacturing is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

19.4% of Taiwan Semiconductor Manufacturing shares are held by institutional investors. Comparatively, 65.3% of shares of all “Semiconductors” companies are held by institutional investors. 1.1% of Taiwan Semiconductor Manufacturing shares are held by insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Taiwan Semiconductor Manufacturing and its competitors, as provided by MarketBeat.com.

Taiwan Semiconductor Manufacturing currently has a consensus price target of $27.00, indicating a potential downside of 34.47%. As a group, “Semiconductors” companies have a potential upside of 9.65%. Given Taiwan Semiconductor Manufacturing’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Taiwan Semiconductor Manufacturing has less favorable growth aspects than its competitors.

Volatility & Risk

Taiwan Semiconductor Manufacturing has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing’s competitors have a beta of 1.07, suggesting that their average stock price is 7% more volatile than the S&P 500.

Profitability

This table compares Taiwan Semiconductor Manufacturing and its competitors’ net margins, return on equity and return on assets.

Valuation & Earnings

This table compares Taiwan Semiconductor Manufacturing and its competitors gross revenue, earnings per share (EPS) and valuation.

Taiwan Semiconductor Manufacturing has higher revenue and earnings than its competitors. Taiwan Semiconductor Manufacturing is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Taiwan Semiconductor Manufacturing competitors beat Taiwan Semiconductor Manufacturing on 8 of the 15 factors compared.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited (TSMC) is a semiconductor foundry. The Company is engaged in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks. It operates through foundry segment. The foundry segment is engaged in manufacturing, selling, packaging, testing and computer-aided design of integrated circuits (IC) and other semiconductor devices and the manufacturing of masks. It operates three 12-inch wafer fabs, four eight-inch wafer fabs, one six-inch wafer fab (fab 2) and two backend fabs (advanced backend fab 1 and 2). It also manages two eight-inch fabs at its subsidiaries, WaferTech, LLC in the United States and TSMC China Company Limited. Its exploratory work focuses on transistors and technologies, such as three dimensional (3D) structures, strained-layer complementary metal-oxide semiconductor (CMOS), high-mobility materials and 3D IC devices.

Receive News & Ratings for Taiwan Semiconductor Manufacturing Company Ltd. Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Taiwan Semiconductor Manufacturing Company Ltd. and related companies with MarketBeat.com’s FREE daily email newsletter.