Comprehensive Stock Comparison
Compare Veeco Instruments Inc. (VECO) 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 VECO's -7.4% |
| Value | TSM | Lower P/E (0.8x vs 18.3x) |
| Quality / Margins | TSM | 45.1% net margin vs VECO's 5.3% |
| Stability / Safety | TSM | Beta 1.44 vs VECO's 1.49, lower leverage |
| Dividends | TSM | 0.8% yield; 5-year raise streak; VECO pays no meaningful dividend |
| Momentum (1Y) | TSM | +108.8% vs VECO's +37.4% |
| Efficiency (ROA) | TSM | 21.8% ROA vs VECO's 2.7%, ROIC 42.7% vs 2.8% |
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
Veeco Instruments designs and manufactures specialized semiconductor manufacturing equipment used to produce microelectronic components like logic chips, memory, and photonics devices. It generates revenue primarily from selling its laser annealing, deposition, etching, and wafer processing systems to semiconductor manufacturers, foundries, and research institutions. The company's competitive advantage lies in its deep expertise in precision thin-film process technologies—particularly in areas like molecular beam epitaxy and atomic layer deposition—where it has established strong customer relationships and technical barriers to entry.
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 4 of 6 categories — strongest in Financial Metrics and Profitability & Efficiency. 1 category is tied.
Financial Metrics (TTM)
TSM is the larger business by revenue, generating $3.82T annually — 5748.9x VECO's $664M. TSM is the more profitable business, keeping 45.1% of every revenue dollar as net income compared to VECO's 5.3%. On growth, TSM holds the edge at +21.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | VECOVeeco Instruments… | TSMTaiwan Semiconduc… |
|---|---|---|
| RevenueTrailing 12 months | $664M | $3.82T |
| EBITDAEarnings before interest/tax | $39M | $2.79T |
| Net IncomeAfter-tax profit | $35M | $1.72T |
| Free Cash FlowCash after capex | $46M | $1.02T |
| Gross MarginGross profit ÷ Revenue | +40.0% | +59.9% |
| Operating MarginEBIT ÷ Revenue | +5.4% | +50.8% |
| Net MarginNet income ÷ Revenue | +5.3% | +45.1% |
| FCF MarginFCF ÷ Revenue | +6.9% | +26.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | -9.4% | +21.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -92.3% | +42.0% |
Valuation Metrics
At 35.1x trailing earnings, TSM trades at a 32% valuation discount to VECO's 51.8x P/E. On an enterprise value basis, TSM's 22.3x EV/EBITDA is more attractive than VECO's 49.9x.
| Metric | VECOVeeco Instruments… | TSMTaiwan Semiconduc… |
|---|---|---|
| Market CapShares × price | $1.8B | $1.94T |
| Enterprise ValueMkt cap + debt − cash | $1.9B | $1.89T |
| Trailing P/EPrice ÷ TTM EPS | 51.80x | 35.15x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.27x | 0.84x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.27x |
| EV / EBITDAEnterprise value multiple | 49.94x | 22.35x |
| Price / SalesMarket cap ÷ Revenue | 2.78x | 15.85x |
| Price / BookPrice ÷ Book value/share | 2.09x | 11.20x |
| Price / FCFMarket cap ÷ FCF | 40.38x | 55.58x |
Profitability & Efficiency
TSM delivers a 31.6% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $4 for VECO. TSM carries lower financial leverage with a 0.18x debt-to-equity ratio, signaling a more conservative balance sheet compared to VECO's 0.29x. On the Piotroski fundamental quality scale (0–9), TSM scores 8/9 vs VECO's 6/9, reflecting strong financial health.
| Metric | VECOVeeco Instruments… | TSMTaiwan Semiconduc… |
|---|---|---|
| ROE (TTM)Return on equity | +4.0% | +31.6% |
| ROA (TTM)Return on assets | +2.7% | +21.8% |
| ROICReturn on invested capital | +2.8% | +42.7% |
| ROCEReturn on capital employed | +3.2% | +33.0% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 8 |
| Debt / EquityFinancial leverage | 0.29x | 0.18x |
| Net DebtTotal debt minus cash | $94M | -$1.77T |
| Cash & Equiv.Liquid assets | $163M | $2.76T |
| Total DebtShort + long-term debt | $258M | $990.4B |
| Interest CoverageEBIT ÷ Interest expense | 3.91x | 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 $13,546 for VECO. Over the past 12 months, TSM leads with a +108.8% total return vs VECO's +37.4%. The 3-year compound annual growth rate (CAGR) favors TSM at 63.5% vs VECO's 12.8% — a key indicator of consistent wealth creation.
| Metric | VECOVeeco Instruments… | TSMTaiwan Semiconduc… |
|---|---|---|
| YTD ReturnYear-to-date | +0.1% | +17.2% |
| 1-Year ReturnPast 12 months | +37.4% | +108.8% |
| 3-Year ReturnCumulative with dividends | +43.7% | +336.8% |
| 5-Year ReturnCumulative with dividends | +35.5% | +196.8% |
| 10-Year ReturnCumulative with dividends | +64.7% | +1552.1% |
| CAGR (3Y)Annualised 3-year return | +12.8% | +63.5% |
Risk & Volatility
TSM is the less volatile stock with a 1.44 beta — it tends to amplify market swings less than VECO's 1.49 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 VECO's 85.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | VECOVeeco Instruments… | TSMTaiwan Semiconduc… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.49x | 1.44x |
| 52-Week HighHighest price in past year | $35.77 | $390.20 |
| 52-Week LowLowest price in past year | $16.92 | $134.25 |
| % of 52W HighCurrent price vs 52-week peak | +85.4% | +96.0% |
| RSI (14)Momentum oscillator 0–100 | 49.8 | 62.8 |
| Avg Volume (50D)Average daily shares traded | 578K | 11.1M |
Analyst Outlook
Wall Street rates VECO as "Buy" and TSM as "Buy". Consensus price targets imply 8.9% upside for TSM (target: $408) vs -1.8% for VECO (target: $30). TSM is the only dividend payer here at 0.77% yield — a key consideration for income-focused portfolios.
| Metric | VECOVeeco Instruments… | TSMTaiwan Semiconduc… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $30.00 | $408.00 |
| # AnalystsCovering analysts | 36 | 23 |
| Dividend YieldAnnual dividend ÷ price | — | +0.8% |
| Dividend StreakConsecutive years of raises | — | 5 |
| Dividend / ShareAnnual DPS | — | $90.94 |
| 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 | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Veeco Instruments I… (VECO) | 100 | 234.18 | +134.2% |
| Taiwan Semiconducto… (TSM) | 100 | 609.79 | +509.8% |
Taiwan Semiconducto… (TSM) returned +197% over 5 years vs Veeco Instruments I… (VECO)'s +35%. 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 |
|---|---|---|---|
| Veeco Instruments I… (VECO) | $332M | $664M | +99.8% |
| Taiwan Semiconducto… (TSM) | $947.9B | $3.8T | +306.0% |
Veeco Instruments Inc.'s revenue grew from $332M (2016) to $664M (2025) — a 8.0% 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 |
|---|---|---|---|
| Veeco Instruments I… (VECO) | -36.8% | 5.3% | +114.5% |
| Taiwan Semiconducto… (TSM) | 35.0% | 45.1% | +28.9% |
Veeco Instruments Inc.'s net margin went from -37% (2016) to 5% (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 |
|---|---|---|---|
| Veeco Instruments I… (VECO) | 58.1 | 48.4 | -16.7% |
| Taiwan Semiconducto… (TSM) | 0.6 | 0.9 | +50.0% |
Veeco Instruments Inc. has traded in a 7x–58x P/E range over 4 years; current trailing P/E is ~52x. 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 |
|---|---|---|---|
| Veeco Instruments I… (VECO) | -3.11 | 0.59 | +119.0% |
| Taiwan Semiconducto… (TSM) | 63.95 | 334.65 | +423.3% |
Veeco Instruments Inc.'s EPS grew from $-3.11 (2016) to $0.59 (2025). 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
Veeco Instruments Inc. generated $46M FCF in 2025 (+69% vs 2021). Taiwan Semiconductor Manufacturing Company Limited generated $1.1T FCF in 2025 (+318% vs 2021).
VECO vs TSM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is VECO 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 Veeco Instruments Inc. (VECO) a "Buy" — based on 36 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 — VECO or TSM?
On trailing P/E, Taiwan Semiconductor Manufacturing Company Limited (TSM) is the cheapest at 35.1x versus Veeco Instruments Inc. at 51.8x. On forward P/E, Taiwan Semiconductor Manufacturing Company Limited is actually cheaper at 0.8x.
03Which is the better long-term investment — VECO or TSM?
Over the past 5 years, Taiwan Semiconductor Manufacturing Company Limited (TSM) delivered a total return of +196.8%, compared to +35.5% for Veeco Instruments Inc. (VECO). 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 VECO's +64.7%. 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 — VECO or TSM?
By beta (market sensitivity over 5 years), Taiwan Semiconductor Manufacturing Company Limited (TSM) is the lower-risk stock at 1.44β versus Veeco Instruments Inc.'s 1.49β — meaning VECO is approximately 3% 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 29% for Veeco Instruments Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — VECO or TSM?
Taiwan Semiconductor Manufacturing Company Limited (TSM) is the more profitable company, earning 45.1% net margin versus 5.3% for Veeco Instruments 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 5.4% for VECO. 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 VECO or TSM more undervalued right now?
On forward earnings alone, Taiwan Semiconductor Manufacturing Company Limited (TSM) trades at 0.8x forward P/E versus 18.3x for Veeco Instruments Inc. — 17.4x 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 — VECO or TSM?
In this comparison, TSM (0.8% yield) pays a dividend. VECO does not pay a meaningful dividend and should not be held primarily for income.
08Is VECO 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). Both have compounded well over 10 years (TSM: +1552%, VECO: +64.7%), 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 VECO 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. TSM pays a dividend while VECO 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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