Comprehensive Stock Comparison
Compare Camtek Ltd. (CAMT) vs Taiwan Semiconductor Manufacturing Company Limited (TSM) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | CAMT | 36.1% revenue growth vs TSM's 33.0% |
| Value | TSM | Lower P/E (0.8x vs 48.2x), PEG 0.03 vs 1.38 |
| Quality / Margins | TSM | 45.1% net margin vs CAMT's 28.4% |
| Stability / Safety | TSM | Beta 1.44 vs CAMT's 1.83, lower leverage |
| Dividends | TSM | 0.8% yield, 5-year raise streak, vs CAMT's 0.7% |
| Momentum (1Y) | CAMT | +124.6% vs TSM's +108.8% |
| Efficiency (ROA) | TSM | 21.8% ROA vs CAMT's 13.7%, ROIC 42.7% vs 13.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Camtek designs and manufactures specialized inspection and metrology equipment for semiconductor manufacturers — particularly for advanced packaging, memory, and image sensor production. It generates revenue primarily from selling its Eagle-series inspection systems and related services to chipmakers across Asia, the US, and Europe. The company's competitive advantage lies in its proprietary 2D and 3D inspection technologies that address complex semiconductor manufacturing challenges where precision is critical.
Taiwan Semiconductor Manufacturing Company is the world's largest dedicated semiconductor foundry, manufacturing advanced chips for technology companies that design but don't produce their own silicon. It generates revenue primarily from wafer fabrication services — with high-performance computing and smartphone chips driving over 80% of sales — supplemented by packaging, testing, and mask-making services. Its competitive moat stems from unmatched manufacturing scale, technological leadership in advanced process nodes, and deep customer relationships that create switching costs for chip designers.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TSM leads in 5 of 6 categories (Financial Metrics, Valuation Metrics). CAMT leads in 1 (Total Returns).
Financial Metrics (TTM)
TSM is the larger business by revenue, generating $3.82T annually — 8098.0x CAMT's $472M. TSM is the more profitable business, keeping 45.1% of every revenue dollar as net income compared to CAMT's 28.4%.
| Metric | CAMTCamtek Ltd. | TSMTaiwan Semiconduc… |
|---|---|---|
| RevenueTrailing 12 months | $472M | $3.82T |
| EBITDAEarnings before interest/tax | $161M | $2.79T |
| Net IncomeAfter-tax profit | $134M | $1.72T |
| Free Cash FlowCash after capex | $0 | $1.02T |
| Gross MarginGross profit ÷ Revenue | +50.3% | +59.9% |
| Operating MarginEBIT ÷ Revenue | +26.6% | +50.8% |
| Net MarginNet income ÷ Revenue | +28.4% | +45.1% |
| FCF MarginFCF ÷ Revenue | +26.1% | +26.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +20.2% | +21.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +21.1% | +42.0% |
Valuation Metrics
At 35.1x trailing earnings, TSM trades at a 49% valuation discount to CAMT's 69.2x P/E. Adjusting for growth (PEG ratio), TSM offers better value at 1.27x vs CAMT's 1.98x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | CAMTCamtek Ltd. | TSMTaiwan Semiconduc… |
|---|---|---|
| Market CapShares × price | $7.2B | $1.94T |
| Enterprise ValueMkt cap + debt − cash | $7.3B | $1.89T |
| Trailing P/EPrice ÷ TTM EPS | 69.17x | 35.15x |
| Forward P/EPrice ÷ next-FY EPS est. | 48.24x | 0.84x |
| PEG RatioP/E ÷ EPS growth rate | 1.98x | 1.27x |
| EV / EBITDAEnterprise value multiple | — | 22.35x |
| Price / SalesMarket cap ÷ Revenue | — | 15.85x |
| Price / BookPrice ÷ Book value/share | 15.05x | 11.20x |
| Price / FCFMarket cap ÷ FCF | — | 55.58x |
Profitability & Efficiency
TSM delivers a 31.6% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $21 for CAMT. TSM carries lower financial leverage with a 0.18x debt-to-equity ratio, signaling a more conservative balance sheet compared to CAMT's 0.38x. On the Piotroski fundamental quality scale (0–9), TSM scores 8/9 vs CAMT's 7/9, reflecting strong financial health.
| Metric | CAMTCamtek Ltd. | TSMTaiwan Semiconduc… |
|---|---|---|
| ROE (TTM)Return on equity | +21.4% | +31.6% |
| ROA (TTM)Return on assets | +13.7% | +21.8% |
| ROICReturn on invested capital | +13.7% | +42.7% |
| ROCEReturn on capital employed | +14.8% | +33.0% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 8 |
| Debt / EquityFinancial leverage | 0.38x | 0.18x |
| Net DebtTotal debt minus cash | $81M | -$1.77T |
| Cash & Equiv.Liquid assets | $126M | $2.76T |
| Total DebtShort + long-term debt | $207M | $990.4B |
| Interest CoverageEBIT ÷ Interest expense | 4356.62x | 315.91x |
Total Returns (with DRIP)
A $10,000 investment in CAMT five years ago would be worth $56,827 today (with dividends reinvested), compared to $29,677 for TSM. Over the past 12 months, CAMT leads with a +124.6% total return vs TSM's +108.8%. The 3-year compound annual growth rate (CAGR) favors CAMT at 83.9% vs TSM's 63.5% — a key indicator of consistent wealth creation.
| Metric | CAMTCamtek Ltd. | TSMTaiwan Semiconduc… |
|---|---|---|
| YTD ReturnYear-to-date | +44.9% | +17.2% |
| 1-Year ReturnPast 12 months | +124.6% | +108.8% |
| 3-Year ReturnCumulative with dividends | +522.1% | +336.8% |
| 5-Year ReturnCumulative with dividends | +468.3% | +196.8% |
| 10-Year ReturnCumulative with dividends | +8757.0% | +1552.1% |
| CAGR (3Y)Annualised 3-year return | +83.9% | +63.5% |
Risk & Volatility
TSM is the less volatile stock with a 1.44 beta — it tends to amplify market swings less than CAMT's 1.83 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | CAMTCamtek Ltd. | TSMTaiwan Semiconduc… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.83x | 1.44x |
| 52-Week HighHighest price in past year | $174.61 | $390.20 |
| 52-Week LowLowest price in past year | $47.41 | $134.25 |
| % of 52W HighCurrent price vs 52-week peak | +95.9% | +96.0% |
| RSI (14)Momentum oscillator 0–100 | 65.4 | 62.8 |
| Avg Volume (50D)Average daily shares traded | 423K | 11.1M |
Analyst Outlook
Wall Street rates CAMT as "Buy" and TSM as "Buy". Consensus price targets imply 8.9% upside for TSM (target: $408) vs -1.1% for CAMT (target: $166). For income investors, TSM offers the higher dividend yield at 0.77% vs CAMT's 0.73%.
| Metric | CAMTCamtek Ltd. | TSMTaiwan Semiconduc… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $165.60 | $408.00 |
| # AnalystsCovering analysts | 12 | 23 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | +0.8% |
| Dividend StreakConsecutive years of raises | 2 | 5 |
| Dividend / ShareAnnual DPS | $1.22 | $90.94 |
| Buyback YieldShare repurchases ÷ mkt cap | — | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Camtek Ltd. (CAMT) | 100 | 1,351.81 | +1251.8% |
| Taiwan Semiconducto… (TSM) | 100 | 609.79 | +509.8% |
Camtek Ltd. (CAMT) returned +468% over 5 years vs Taiwan Semiconducto… (TSM)'s +197%. A $10,000 investment in CAMT 5 years ago would be worth $56,827 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Camtek Ltd. (CAMT) | $110M | $429M | +291.9% |
| Taiwan Semiconducto… (TSM) | $947.9B | $3.8T | +306.0% |
Taiwan Semiconductor Manufacturing Company Limited's revenue grew from $947.9B (2016) to $3.8T (2025) — a 16.8% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Camtek Ltd. (CAMT) | 4.3% | 27.6% | +538.8% |
| Taiwan Semiconducto… (TSM) | 35.0% | 45.1% | +28.9% |
Taiwan Semiconductor Manufacturing Company Limited's net margin went from 35% (2016) to 45% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Camtek Ltd. (CAMT) | 14.7 | 33.4 | +127.2% |
| Taiwan Semiconducto… (TSM) | 0.6 | 0.9 | +50.0% |
Camtek Ltd. has traded in a 13x–43x P/E range over 8 years; current trailing P/E is ~69x. Taiwan Semiconductor Manufacturing Company Limited has traded in a 0x–1x P/E range over 9 years; current trailing P/E is ~35x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Camtek Ltd. (CAMT) | 0.13 | 2.42 | +1761.5% |
| Taiwan Semiconducto… (TSM) | 63.95 | 334.65 | +423.3% |
Taiwan Semiconductor Manufacturing Company Limited's EPS grew from $63.95 (2016) to $334.65 (2025) — a 20% CAGR.
Chart 6Free Cash Flow — 5 Years
Camtek Ltd. generated $112M FCF in 2024 (+97% vs 2021). Taiwan Semiconductor Manufacturing Company Limited generated $1.1T FCF in 2025 (+318% vs 2021).
CAMT vs TSM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is CAMT or TSM a better buy right now?
Taiwan Semiconductor Manufacturing Company Limited (TSM) offers the better valuation at 35.1x trailing P/E (0.8x forward), making it the more compelling value choice. Analysts rate Camtek Ltd. (CAMT) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CAMT or TSM?
On trailing P/E, Taiwan Semiconductor Manufacturing Company Limited (TSM) is the cheapest at 35.1x versus Camtek Ltd. at 69.2x. On forward P/E, Taiwan Semiconductor Manufacturing Company Limited is actually cheaper at 0.8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Taiwan Semiconductor Manufacturing Company Limited wins at 0.03x versus Camtek Ltd.'s 1.38x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — CAMT or TSM?
Over the past 5 years, Camtek Ltd. (CAMT) delivered a total return of +468.3%, compared to +196.8% for Taiwan Semiconductor Manufacturing Company Limited (TSM). A $10,000 investment in CAMT five years ago would be worth approximately $57K today (assuming dividends reinvested). Over 10 years, the gap is even starker: CAMT returned +87.6% versus TSM's +1552%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CAMT or TSM?
By beta (market sensitivity over 5 years), Taiwan Semiconductor Manufacturing Company Limited (TSM) is the lower-risk stock at 1.44β versus Camtek Ltd.'s 1.83β — meaning CAMT is approximately 26% more volatile than TSM relative to the S&P 500. On balance sheet safety, Taiwan Semiconductor Manufacturing Company Limited (TSM) carries a lower debt/equity ratio of 18% versus 38% for Camtek Ltd. — giving it more financial flexibility in a downturn.
05Which has better profit margins — CAMT or TSM?
Taiwan Semiconductor Manufacturing Company Limited (TSM) is the more profitable company, earning 45.1% net margin versus 27.6% for Camtek Ltd. — meaning it keeps 45.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TSM leads at 50.8% versus 25.2% for CAMT. At the gross margin level — before operating expenses — TSM leads at 59.9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is CAMT or TSM more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Taiwan Semiconductor Manufacturing Company Limited (TSM) is the more undervalued stock at a PEG of 0.03x versus Camtek Ltd.'s 1.38x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Taiwan Semiconductor Manufacturing Company Limited (TSM) trades at 0.8x forward P/E versus 48.2x for Camtek Ltd. — 47.4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TSM: 8.9% to $408.00.
07Which pays a better dividend — CAMT or TSM?
All stocks in this comparison pay dividends. Taiwan Semiconductor Manufacturing Company Limited (TSM) offers the highest yield at 0.8%, versus 0.7% for Camtek Ltd. (CAMT).
08Is CAMT or TSM better for a retirement portfolio?
For long-horizon retirement investors, Taiwan Semiconductor Manufacturing Company Limited (TSM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.8% yield, +1552% 10Y return). Camtek Ltd. (CAMT) carries a higher beta of 1.83 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TSM: +1552%, CAMT: +87.6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between CAMT and TSM?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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