Comprehensive Stock Comparison
Compare Skyworks Solutions, Inc. (SWKS) 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 | TSM | 33.0% revenue growth vs SWKS's -2.2% |
| Value | TSM | Lower P/E (0.8x vs 12.7x) |
| Quality / Margins | TSM | 45.1% net margin vs SWKS's 9.7% |
| Stability / Safety | TSM | Beta 1.44 vs SWKS's 1.72, lower leverage |
| Dividends | SWKS | 4.7% yield, 12-year raise streak, vs TSM's 0.8% |
| Momentum (1Y) | TSM | +108.8% vs SWKS's -6.4% |
| Efficiency (ROA) | TSM | 21.8% ROA vs SWKS's 5.0%, ROIC 42.7% vs 6.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Skyworks Solutions is a semiconductor company that designs and manufactures specialized analog chips for wireless connectivity. It generates revenue primarily from selling radio frequency (RF) components — including amplifiers, filters, and front-end modules — to smartphone makers (roughly 70% of sales) and other electronics manufacturers. The company's moat comes from its deep expertise in analog RF design and strong relationships with major smartphone OEMs like Apple.
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
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TSM leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). SWKS leads in 2 (Valuation Metrics, Analyst Outlook).
Financial Metrics (TTM)
TSM is the larger business by revenue, generating $3.82T annually — 942.1x SWKS's $4.1B. TSM is the more profitable business, keeping 45.1% of every revenue dollar as net income compared to SWKS's 9.7%. On growth, TSM holds the edge at +21.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | SWKSSkyworks Solution… | TSMTaiwan Semiconduc… |
|---|---|---|
| RevenueTrailing 12 months | $4.1B | $3.82T |
| EBITDAEarnings before interest/tax | $899M | $2.79T |
| Net IncomeAfter-tax profit | $394M | $1.72T |
| Free Cash FlowCash after capex | $1.1B | $1.02T |
| Gross MarginGross profit ÷ Revenue | +41.1% | +59.9% |
| Operating MarginEBIT ÷ Revenue | +10.7% | +50.8% |
| Net MarginNet income ÷ Revenue | +9.7% | +45.1% |
| FCF MarginFCF ÷ Revenue | +26.9% | +26.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | -3.1% | +21.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -47.0% | +42.0% |
Valuation Metrics
At 19.3x trailing earnings, SWKS trades at a 45% valuation discount to TSM's 35.1x P/E. On an enterprise value basis, SWKS's 9.2x EV/EBITDA is more attractive than TSM's 22.3x.
| Metric | SWKSSkyworks Solution… | TSMTaiwan Semiconduc… |
|---|---|---|
| Market CapShares × price | $8.9B | $1.94T |
| Enterprise ValueMkt cap + debt − cash | $8.9B | $1.89T |
| Trailing P/EPrice ÷ TTM EPS | 19.34x | 35.15x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.67x | 0.84x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.27x |
| EV / EBITDAEnterprise value multiple | 9.24x | 22.35x |
| Price / SalesMarket cap ÷ Revenue | 2.17x | 15.85x |
| Price / BookPrice ÷ Book value/share | 1.61x | 11.20x |
| Price / FCFMarket cap ÷ FCF | 8.01x | 55.58x |
Profitability & Efficiency
TSM delivers a 31.6% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $7 for SWKS. TSM carries lower financial leverage with a 0.18x debt-to-equity ratio, signaling a more conservative balance sheet compared to SWKS's 0.21x. On the Piotroski fundamental quality scale (0–9), TSM scores 8/9 vs SWKS's 5/9, reflecting strong financial health.
| Metric | SWKSSkyworks Solution… | TSMTaiwan Semiconduc… |
|---|---|---|
| ROE (TTM)Return on equity | +6.8% | +31.6% |
| ROA (TTM)Return on assets | +5.0% | +21.8% |
| ROICReturn on invested capital | +6.3% | +42.7% |
| ROCEReturn on capital employed | +7.0% | +33.0% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 8 |
| Debt / EquityFinancial leverage | 0.21x | 0.18x |
| Net DebtTotal debt minus cash | $42M | -$1.77T |
| Cash & Equiv.Liquid assets | $1.2B | $2.76T |
| Total DebtShort + long-term debt | $1.2B | $990.4B |
| Interest CoverageEBIT ÷ Interest expense | 17.77x | 315.91x |
Total Returns (with DRIP)
A $10,000 investment in TSM five years ago would be worth $29,677 today (with dividends reinvested), compared to $3,886 for SWKS. Over the past 12 months, TSM leads with a +108.8% total return vs SWKS's -6.4%. The 3-year compound annual growth rate (CAGR) favors TSM at 63.5% vs SWKS's -15.3% — a key indicator of consistent wealth creation.
| Metric | SWKSSkyworks Solution… | TSMTaiwan Semiconduc… |
|---|---|---|
| YTD ReturnYear-to-date | -6.4% | +17.2% |
| 1-Year ReturnPast 12 months | -6.4% | +108.8% |
| 3-Year ReturnCumulative with dividends | -39.2% | +336.8% |
| 5-Year ReturnCumulative with dividends | -61.1% | +196.8% |
| 10-Year ReturnCumulative with dividends | +20.2% | +1552.1% |
| CAGR (3Y)Annualised 3-year return | -15.3% | +63.5% |
Risk & Volatility
TSM is the less volatile stock with a 1.44 beta — it tends to amplify market swings less than SWKS's 1.72 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TSM currently trades 96.0% from its 52-week high vs SWKS's 65.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SWKSSkyworks Solution… | TSMTaiwan Semiconduc… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.72x | 1.44x |
| 52-Week HighHighest price in past year | $90.90 | $390.20 |
| 52-Week LowLowest price in past year | $47.93 | $134.25 |
| % of 52W HighCurrent price vs 52-week peak | +65.5% | +96.0% |
| RSI (14)Momentum oscillator 0–100 | 47.1 | 62.8 |
| Avg Volume (50D)Average daily shares traded | 3.3M | 11.1M |
Analyst Outlook
Wall Street rates SWKS as "Buy" and TSM as "Buy". Consensus price targets imply 29.8% upside for SWKS (target: $77) vs 8.9% for TSM (target: $408). For income investors, SWKS offers the higher dividend yield at 4.68% vs TSM's 0.77%.
| Metric | SWKSSkyworks Solution… | TSMTaiwan Semiconduc… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $77.36 | $408.00 |
| # AnalystsCovering analysts | 59 | 23 |
| Dividend YieldAnnual dividend ÷ price | +4.7% | +0.8% |
| Dividend StreakConsecutive years of raises | 12 | 5 |
| Dividend / ShareAnnual DPS | $2.79 | $90.94 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.5% | 0.0% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Skyworks Solutions,… (SWKS) | 100 | 54.5 | -45.5% |
| Taiwan Semiconducto… (TSM) | 100 | 609.79 | +509.8% |
Taiwan Semiconducto… (TSM) returned +197% over 5 years vs Skyworks Solutions,… (SWKS)'s -61%. A $10,000 investment in TSM 5 years ago would be worth $29,677 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Skyworks Solutions,… (SWKS) | $3.3B | $4.1B | +24.3% |
| Taiwan Semiconducto… (TSM) | $947.9B | $3.8T | +306.0% |
Skyworks Solutions, Inc.'s revenue grew from $3.3B (2016) to $4.1B (2025) — a 2.4% CAGR. 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 |
|---|---|---|---|
| Skyworks Solutions,… (SWKS) | 30.3% | 11.7% | -61.4% |
| Taiwan Semiconducto… (TSM) | 35.0% | 45.1% | +28.9% |
Skyworks Solutions, Inc.'s net margin went from 30% (2016) to 12% (2025). 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 |
|---|---|---|---|
| Skyworks Solutions,… (SWKS) | 17.6 | 20.6 | +17.0% |
| Taiwan Semiconducto… (TSM) | 0.6 | 0.9 | +50.0% |
Skyworks Solutions, Inc. has traded in a 12x–32x P/E range over 9 years; current trailing P/E is ~19x. 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 |
|---|---|---|---|
| Skyworks Solutions,… (SWKS) | 5.18 | 3.08 | -40.5% |
| Taiwan Semiconducto… (TSM) | 63.95 | 334.65 | +423.3% |
Skyworks Solutions, Inc.'s EPS grew from $5.18 (2016) to $3.08 (2025) — a -6% CAGR. 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
Skyworks Solutions, Inc. generated $1B FCF in 2025 (-1% vs 2021). Taiwan Semiconductor Manufacturing Company Limited generated $1.1T FCF in 2025 (+318% vs 2021).
SWKS vs TSM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SWKS or TSM a better buy right now?
Skyworks Solutions, Inc. (SWKS) offers the better valuation at 19.3x trailing P/E (12.7x forward), making it the more compelling value choice. Analysts rate Skyworks Solutions, Inc. (SWKS) a "Buy" — based on 59 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 — SWKS or TSM?
On trailing P/E, Skyworks Solutions, Inc. (SWKS) is the cheapest at 19.3x versus Taiwan Semiconductor Manufacturing Company Limited at 35.1x. On forward P/E, Taiwan Semiconductor Manufacturing Company Limited is actually cheaper at 0.8x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — SWKS or TSM?
Over the past 5 years, Taiwan Semiconductor Manufacturing Company Limited (TSM) delivered a total return of +196.8%, compared to -61.1% for Skyworks Solutions, Inc. (SWKS). A $10,000 investment in TSM five years ago would be worth approximately $30K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TSM returned +1552% versus SWKS's +20.2%. 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 — SWKS or TSM?
By beta (market sensitivity over 5 years), Taiwan Semiconductor Manufacturing Company Limited (TSM) is the lower-risk stock at 1.44β versus Skyworks Solutions, Inc.'s 1.72β — meaning SWKS is approximately 19% 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 21% for Skyworks Solutions, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — SWKS or TSM?
Taiwan Semiconductor Manufacturing Company Limited (TSM) is the more profitable company, earning 45.1% net margin versus 11.7% for Skyworks Solutions, Inc. — 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 12.2% for SWKS. 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 SWKS or TSM more undervalued right now?
On forward earnings alone, Taiwan Semiconductor Manufacturing Company Limited (TSM) trades at 0.8x forward P/E versus 12.7x for Skyworks Solutions, Inc. — 11.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SWKS: 29.8% to $77.36.
07Which pays a better dividend — SWKS or TSM?
All stocks in this comparison pay dividends. Skyworks Solutions, Inc. (SWKS) offers the highest yield at 4.7%, versus 0.8% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
08Is SWKS 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). Skyworks Solutions, Inc. (SWKS) carries a higher beta of 1.72 — 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%, SWKS: +20.2%), 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 SWKS 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. In terms of investment character: SWKS is a small-cap income-oriented stock; TSM is a mega-cap quality compounder stock. 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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