COST vs TSM: Which Is the Better Buy?
Side-by-side comparison of Costco Wholesale Corporation and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-10.
Costco Wholesale Corporation · Consumer Defensive
$1,002.88
-35.4% upside to fair value
Grade C
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
TSM has more upside to fair value
(-3.8%).
TSM trades at a lower forward P/E
(26.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
COST |
TSM |
| Current Price |
$1,002.88 |
$365.90 |
| Fair Value Estimate |
$648.03 |
$352.00 |
| Upside to Fair Value |
-35.4%
|
-3.8%
|
| Market Cap |
$444.9B |
$1,897.7B |
| Forward P/E |
52.1x
|
26.0x
|
| EV / EBITDA |
31.0x
|
18.1x
|
| Price / Sales |
1.6x
|
13.3x
|
| Price / FCF |
49.0x
|
54.0x
|
| Revenue Growth YoY |
+3.4%
|
+33.0%
|
| Gross Margin |
12.9%
|
59.9%
|
| Operating Margin |
3.8%
|
50.8%
|
| Return on Equity |
28.8%
|
35.1%
|
| Dividend Yield |
0% |
1.05% |
| FCF Yield |
2.04%
|
1.85%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Costco Wholesale Corporation operates a global membership-based warehouse club model with over 900 warehouses across 14 countries, generating $254 billion in fiscal 2024 revenue. The company benefits from a durable competitive moat driven by scale advantages, a loyal membership base with high renewal rates, and superior employee retention through better wages and benefits. Despite steady revenue …
TSMC remains the single most critical company in the global semiconductor supply chain, manufacturing virtually every leading-edge AI chip for NVIDIA, Apple, AMD, and the hyperscalers. The company delivered exceptional 2025 results with 33% revenue growth and 50% net income growth, driven by HPC surging to 55% of Q4 revenue. At the 3nm node, TSMC maintains production yields of 70-80% versus Samsu…
Accumulation Zones
| Metric |
COST |
TSM |
| Zone Low |
$486.02 |
$265.00 |
| Zone High |
$550.83 |
$310.00 |
| In Buy Zone? |
No
|
No
|