Taiwan Semiconductor vs Intel Which Is a Better Investment?

Taiwan Semiconductor Manufacturing Company (TSMC) and Intel Corporation are two major players in the semiconductor industry, each with a significant impact on the global market. TSMC, based in Taiwan, is the world's largest contract manufacturer of semiconductors, while Intel, based in the United States, is one of the largest producers of computer chips. Both companies have faced challenges and opportunities in recent years, leading to fluctuations in their stock prices. Investors closely monitor the performance of these two tech giants as they navigate the rapidly changing landscape of the semiconductor industry.

Taiwan Semiconductor or Intel?

When comparing Taiwan Semiconductor and Intel, 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 Taiwan Semiconductor and Intel.

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. Taiwan Semiconductor has a dividend yield of 3.19%, while Intel has a dividend yield of 1.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Taiwan Semiconductor reports a 5-year dividend growth of 6.05% year and a payout ratio of 177.19%. On the other hand, Intel reports a 5-year dividend growth of -9.22% year and a payout ratio of -13.32%.

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 Taiwan Semiconductor P/E ratio at 27.64 and Intel's P/E ratio at -6.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Taiwan Semiconductor P/B ratio is 2.06 while Intel's P/B ratio is 1.08.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Taiwan Semiconductor has seen a 5-year revenue growth of 0.48%, while Intel's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Taiwan Semiconductor's ROE at 7.26% and Intel's ROE at -14.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$62.00 for Taiwan Semiconductor and $24.83 for Intel. Over the past year, Taiwan Semiconductor's prices ranged from NT$51.20 to NT$98.90, with a yearly change of 93.16%. Intel's prices fluctuated between $18.51 and $51.28, with a yearly change of 177.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.