ETN vs TSM: Which Is the Better Buy?
Side-by-side comparison of Eaton Corporation plc and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-24.
Eaton Corporation plc · Industrials
$438.76
+32.2% upside to fair value
Med Conviction
Grade B
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
ETN has more upside to fair value
(+32.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
ETN |
TSM |
| Current Price |
$438.76 |
$452.00 |
| Fair Value Estimate |
$579.99 |
$515.00 |
| Upside to Fair Value |
+32.2%
|
+13.9%
|
| Market Cap |
$170.4B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
29.6x
|
19.2x
|
| Price / Sales |
5.7x
|
0.5x
|
| Price / FCF |
37.9x
|
2.1x
|
| Revenue Growth YoY |
+21.4%
|
+36.0%
|
| Gross Margin |
35.9%
|
64.2%
|
| Operating Margin |
17.7%
|
56.0%
|
| Return on Equity |
19.6%
|
39.3%
|
| Dividend Yield |
0.99% |
0.96% |
| FCF Yield |
2.64%
|
47.62%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Eaton Corporation plc is a Dublin-headquartered power management company with roughly 97,303 employees, operating electrical, aerospace, vehicle and eMobility segments that supply power distribution, circuit protection, power quality and reliability equipment and services. The business quality is high: TTM gross margin of 35.9%, TTM operating margin of 17.7%, TTM net margin of 12.8% and ROE of 19…
Taiwan Semiconductor Manufacturing Company is the world's largest contract chipmaker, manufacturing advanced logic, mixed-signal, RF, and embedded memory wafers for high-performance computing, smartphones, IoT, and automotive customers from a base of 65,152 employees headquartered in Hsinchu, Taiwan. The business quality is exceptionally high: TTM gross margin is 64.2%, TTM operating margin is 56…
Accumulation Zones
| Metric |
ETN |
TSM |
| Zone Low |
$434.99 |
$386.25 |
| Zone High |
$492.99 |
$437.75 |
| In Buy Zone? |
Yes
|
No
|