QUALCOMM vs Taiwan Semiconductor

QUALCOMM and Taiwan Semiconductor Manufacturing Company (TSMC) are two giants in the technology industry that investors often closely monitor. QUALCOMM, a leading provider of wireless technology and semiconductors, has seen significant growth in recent years with the expansion of 5G networks. On the other hand, TSMC, the world's largest semiconductor foundry, has been a key player in the global chip industry. Both companies face unique challenges and opportunities in the competitive market, making their stock performance worth analyzing for potential investors.

QUALCOMM or Taiwan Semiconductor?

When comparing QUALCOMM and Taiwan Semiconductor, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between QUALCOMM and Taiwan Semiconductor.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. QUALCOMM has a dividend yield of 1.9%, while Taiwan Semiconductor has a dividend yield of 3.23%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. QUALCOMM reports a 5-year dividend growth of 5.33% year and a payout ratio of 41.69%. On the other hand, Taiwan Semiconductor reports a 5-year dividend growth of 6.05% year and a payout ratio of 177.19%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with QUALCOMM P/E ratio at 22.30 and Taiwan Semiconductor's P/E ratio at 27.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. QUALCOMM P/B ratio is 7.88 while Taiwan Semiconductor's P/B ratio is 2.03.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, QUALCOMM has seen a 5-year revenue growth of 1.06%, while Taiwan Semiconductor's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with QUALCOMM 's ROE at 37.16% and Taiwan Semiconductor's ROE at 7.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $172.75 for QUALCOMM and NT$60.50 for Taiwan Semiconductor. Over the past year, QUALCOMM 's prices ranged from $104.33 to $230.63, with a yearly change of 121.06%. Taiwan Semiconductor's prices fluctuated between NT$51.20 and NT$98.90, with a yearly change of 93.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.