ARM HOLDINGS PLC /UK vs Taiwan Semiconductor Manufacturing Company Limited, two Semiconductors stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
TSMC earns 27.1% on equity and 17.3% on assets by pouring capital into fabs; Arm earns 10.9% and 8.5% by owning instruction sets and licensing them, which inverts the usual physics: the asset-heavy manufacturer currently out-earns the asset-light designer on capital. The difference is where each sits in its investment arc, TSMC harvesting an AI buildout, Arm still spending toward one. The market prices the harvest at 63.5 times earnings and the promise at 393.6. Both carry effectively no debt. On a 97.9% gross margin, Arm's operating line has room to travel; the multiple requires that trip to happen.
Comparison updated 2026-07-10.
| Metric | ARM | TSM |
|---|---|---|
| Price | $334.54 | $431.91 |
| Market cap | $357.6B | $2.24T |
| Sector | Semiconductors | Semiconductors |
| Stage | Growth | Growth |
| P/E | 393.6 | 63.5 |
| P/B | 43.16 | 17.16 |
| P/S | 72.69 | 25.15 |
| EV/EBITDA | 369.7 | 53.9 |
| Revenue growth | +23.3% | +22.6% |
| Gross margin | 97.8% | 55.6% |
| Operating margin | 29.4% | 45.3% |
| Net margin | 18.4% | 39.6% |
| Return on equity | 10.9% | 27.1% |
| Return on assets | 8.4% | 17.3% |
| Return on invested capital | 7.1% | 25.4% |
| FCF yield | 0.3% | 1.2% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | 6.00 | 2.36 |
| Altman Z (solvency) | 7.76 | 8.22 |
| Piotroski F (quality) | 6 / 9 | 7 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.