Comprehensive Stock Comparison
Compare GLOBALFOUNDRIES Inc. (GFS) vs United Microelectronics Corporation (UMC) 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 | UMC | 2.3% revenue growth vs GFS's 0.6% |
| Value | UMC | Lower P/E (17.2x vs 25.8x) |
| Quality / Margins | UMC | 20.5% net margin vs GFS's 13.0% |
| Stability / Safety | UMC | Beta 0.75 vs GFS's 1.60 |
| Dividends | UMC | 4.4% yield; GFS pays no meaningful dividend |
| Momentum (1Y) | UMC | +69.4% vs GFS's +22.6% |
| Efficiency (ROA) | UMC | 8.4% ROA vs GFS's 5.2%, ROIC 9.7% vs 5.3% |
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
GLOBALFOUNDRIES is a semiconductor foundry that manufactures integrated circuits for other companies rather than designing its own chips. It generates revenue primarily from wafer fabrication services — including specialty technologies for automotive, IoT, and communications applications — with contract manufacturing fees from customers like AMD, Qualcomm, and Broadcom. Its competitive advantage lies in being one of the few pure-play foundries with advanced specialty process technologies, particularly in RF, analog, and power semiconductors where it avoids direct competition with TSMC and Samsung in leading-edge nodes.
United Microelectronics Corporation is a pure-play semiconductor wafer foundry that manufactures integrated circuits for other companies rather than designing its own chips. It generates revenue primarily from wafer fabrication services — accounting for the vast majority of sales — with additional income from mask tooling, design support, and testing services. Its competitive advantage lies in specialized manufacturing expertise in mature and specialty process technologies — particularly in areas like RFSOI, embedded memory, and high-voltage processes — where it maintains strong customer relationships and technical leadership.
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
UMC leads in 4 of 6 categories — strongest in Financial Metrics and Valuation Metrics. 1 category is tied.
Financial Metrics (TTM)
UMC is the larger business by revenue, generating $238.8B annually — 35.2x GFS's $6.8B. UMC is the more profitable business, keeping 20.5% of every revenue dollar as net income compared to GFS's 13.0%.
| Metric | GFSGLOBALFOUNDRIES I… | UMCUnited Microelect… |
|---|---|---|
| RevenueTrailing 12 months | $6.8B | $238.8B |
| EBITDAEarnings before interest/tax | $2.1B | $105.7B |
| Net IncomeAfter-tax profit | $885M | $48.9B |
| Free Cash FlowCash after capex | $1.0B | $50.1B |
| Gross MarginGross profit ÷ Revenue | +25.2% | +29.8% |
| Operating MarginEBIT ÷ Revenue | +11.7% | +19.0% |
| Net MarginNet income ÷ Revenue | +13.0% | +20.5% |
| FCF MarginFCF ÷ Revenue | +14.9% | +21.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | 0.0% | -2.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +127.3% | +3.5% |
Valuation Metrics
At 19.6x trailing earnings, UMC trades at a 34% valuation discount to GFS's 29.9x P/E. On an enterprise value basis, UMC's 7.7x EV/EBITDA is more attractive than GFS's 12.4x.
| Metric | GFSGLOBALFOUNDRIES I… | UMCUnited Microelect… |
|---|---|---|
| Market CapShares × price | $26.4B | $26.3B |
| Enterprise ValueMkt cap + debt − cash | $26.3B | $25.3B |
| Trailing P/EPrice ÷ TTM EPS | 29.91x | 19.63x |
| Forward P/EPrice ÷ next-FY EPS est. | 25.83x | 17.24x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.47x |
| EV / EBITDAEnterprise value multiple | 12.44x | 7.66x |
| Price / SalesMarket cap ÷ Revenue | 3.89x | 3.47x |
| Price / BookPrice ÷ Book value/share | 2.21x | 2.16x |
| Price / FCFMarket cap ÷ FCF | 26.19x | 15.75x |
Profitability & Efficiency
UMC delivers a 12.9% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $7 for GFS. GFS carries lower financial leverage with a 0.14x debt-to-equity ratio, signaling a more conservative balance sheet compared to UMC's 0.21x. On the Piotroski fundamental quality scale (0–9), GFS scores 7/9 vs UMC's 5/9, reflecting strong financial health.
| Metric | GFSGLOBALFOUNDRIES I… | UMCUnited Microelect… |
|---|---|---|
| ROE (TTM)Return on equity | +7.4% | +12.9% |
| ROA (TTM)Return on assets | +5.2% | +8.4% |
| ROICReturn on invested capital | +5.3% | +9.7% |
| ROCEReturn on capital employed | +5.6% | +9.0% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | 0.14x | 0.21x |
| Net DebtTotal debt minus cash | -$171M | -$32.3B |
| Cash & Equiv.Liquid assets | $1.8B | $110.7B |
| Total DebtShort + long-term debt | $1.6B | $78.3B |
| Interest CoverageEBIT ÷ Interest expense | — | 43.56x |
Total Returns (with DRIP)
A $10,000 investment in UMC five years ago would be worth $12,699 today (with dividends reinvested), compared to $10,248 for GFS. Over the past 12 months, UMC leads with a +69.4% total return vs GFS's +22.6%. The 3-year compound annual growth rate (CAGR) favors UMC at 13.8% vs GFS's -10.1% — a key indicator of consistent wealth creation.
| Metric | GFSGLOBALFOUNDRIES I… | UMCUnited Microelect… |
|---|---|---|
| YTD ReturnYear-to-date | +29.0% | +33.2% |
| 1-Year ReturnPast 12 months | +22.6% | +69.4% |
| 3-Year ReturnCumulative with dividends | -27.2% | +47.3% |
| 5-Year ReturnCumulative with dividends | +2.5% | +27.0% |
| 10-Year ReturnCumulative with dividends | +2.5% | +542.2% |
| CAGR (3Y)Annualised 3-year return | -10.1% | +13.8% |
Risk & Volatility
UMC is the less volatile stock with a 0.75 beta — it tends to amplify market swings less than GFS's 1.60 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GFS currently trades 93.3% from its 52-week high vs UMC's 82.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | GFSGLOBALFOUNDRIES I… | UMCUnited Microelect… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.60x | 0.75x |
| 52-Week HighHighest price in past year | $50.98 | $12.68 |
| 52-Week LowLowest price in past year | $29.77 | $5.71 |
| % of 52W HighCurrent price vs 52-week peak | +93.3% | +82.3% |
| RSI (14)Momentum oscillator 0–100 | 56.2 | 52.4 |
| Avg Volume (50D)Average daily shares traded | 3.3M | 9.7M |
Analyst Outlook
Wall Street rates GFS as "Buy" and UMC as "Hold". Consensus price targets imply 7.5% upside for GFS (target: $51) vs -17.6% for UMC (target: $9). UMC is the only dividend payer here at 4.40% yield — a key consideration for income-focused portfolios.
| Metric | GFSGLOBALFOUNDRIES I… | UMCUnited Microelect… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $51.14 | $8.60 |
| # AnalystsCovering analysts | 19 | 15 |
| Dividend YieldAnnual dividend ÷ price | — | +4.4% |
| Dividend StreakConsecutive years of raises | — | 0 |
| Dividend / ShareAnnual DPS | — | $14.41 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Oct 21 | Feb 26 | Change |
|---|---|---|---|
| GLOBALFOUNDRIES Inc. (GFS) | 100 | 90.91 | -9.1% |
| United Microelectro… (UMC) | 100 | 97 | -3.0% |
United Microelectro… (UMC) returned +27% over 5 years vs GLOBALFOUNDRIES Inc. (GFS)'s +2%. A $10,000 investment in UMC 5 years ago would be worth $12,699 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| GLOBALFOUNDRIES Inc. (GFS) | $5.8B | $6.8B | +16.8% |
| United Microelectro… (UMC) | $147.9B | $237.6B | +60.6% |
United Microelectronics Corporation's revenue grew from $147.9B (2016) to $237.6B (2025) — a 5.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| GLOBALFOUNDRIES Inc. (GFS) | -23.6% | 13.0% | +155.2% |
| United Microelectro… (UMC) | 5.8% | 17.6% | +201.2% |
United Microelectronics Corporation's net margin went from 6% (2016) to 18% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| GLOBALFOUNDRIES Inc. (GFS) | 20.6 | 22 | +6.8% |
| United Microelectro… (UMC) | 0.6 | 0.5 | -16.7% |
GLOBALFOUNDRIES Inc. has traded in a 21x–33x P/E range over 3 years; current trailing P/E is ~30x. United Microelectronics Corporation has traded in a 0x–1x P/E range over 9 years; current trailing P/E is ~20x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| GLOBALFOUNDRIES Inc. (GFS) | -2.66 | 1.59 | +159.8% |
| United Microelectro… (UMC) | 3.35 | 16.7 | +398.5% |
United Microelectronics Corporation's EPS grew from $3.35 (2016) to $16.70 (2025) — a 20% CAGR.
Chart 6Free Cash Flow — 5 Years
GLOBALFOUNDRIES Inc. generated $1B FCF in 2025 (-6% vs 2021). United Microelectronics Corporation generated $52B FCF in 2025 (+30% vs 2021).
GFS vs UMC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is GFS or UMC a better buy right now?
United Microelectronics Corporation (UMC) offers the better valuation at 19.6x trailing P/E (17.2x forward), making it the more compelling value choice. Analysts rate GLOBALFOUNDRIES Inc. (GFS) a "Buy" — based on 19 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 — GFS or UMC?
On trailing P/E, United Microelectronics Corporation (UMC) is the cheapest at 19.6x versus GLOBALFOUNDRIES Inc. at 29.9x. On forward P/E, United Microelectronics Corporation is actually cheaper at 17.2x.
03Which is the better long-term investment — GFS or UMC?
Over the past 5 years, United Microelectronics Corporation (UMC) delivered a total return of +27.0%, compared to +2.5% for GLOBALFOUNDRIES Inc. (GFS). A $10,000 investment in UMC five years ago would be worth approximately $13K today (assuming dividends reinvested). Over 10 years, the gap is even starker: UMC returned +542.2% versus GFS's +2.5%. 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 — GFS or UMC?
By beta (market sensitivity over 5 years), United Microelectronics Corporation (UMC) is the lower-risk stock at 0.75β versus GLOBALFOUNDRIES Inc.'s 1.60β — meaning GFS is approximately 112% more volatile than UMC relative to the S&P 500. On balance sheet safety, GLOBALFOUNDRIES Inc. (GFS) carries a lower debt/equity ratio of 14% versus 21% for United Microelectronics Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — GFS or UMC?
United Microelectronics Corporation (UMC) is the more profitable company, earning 17.6% net margin versus 13.0% for GLOBALFOUNDRIES Inc. — meaning it keeps 17.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: UMC leads at 18.5% versus 11.7% for GFS. At the gross margin level — before operating expenses — UMC leads at 29.0%, 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 GFS or UMC more undervalued right now?
On forward earnings alone, United Microelectronics Corporation (UMC) trades at 17.2x forward P/E versus 25.8x for GLOBALFOUNDRIES Inc. — 8.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GFS: 7.5% to $51.14.
07Which pays a better dividend — GFS or UMC?
In this comparison, UMC (4.4% yield) pays a dividend. GFS does not pay a meaningful dividend and should not be held primarily for income.
08Is GFS or UMC better for a retirement portfolio?
For long-horizon retirement investors, United Microelectronics Corporation (UMC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.75), 4.4% yield, +542.2% 10Y return). GLOBALFOUNDRIES Inc. (GFS) carries a higher beta of 1.60 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (UMC: +542.2%, GFS: +2.5%), 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 GFS and UMC?
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: GFS is a mid-cap quality compounder stock; UMC is a mid-cap income-oriented stock. UMC pays a dividend while GFS does not, making them suitable for different income and tax situations. 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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