HD vs TSM: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
HD has more upside to fair value
(+12.1%).
HD trades at a lower forward P/E
(23.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
TSM |
| Current Price |
$337.34 |
$365.90 |
| Fair Value Estimate |
$378.00 |
$352.00 |
| Upside to Fair Value |
+12.1%
|
-3.8%
|
| Market Cap |
$336.0B |
$1,897.7B |
| Forward P/E |
23.0x
|
26.0x
|
| EV / EBITDA |
18.1x
|
18.1x
|
| Price / Sales |
2.3x
|
13.3x
|
| Price / FCF |
29.7x
|
54.0x
|
| Revenue Growth YoY |
+3.2%
|
+33.0%
|
| Gross Margin |
33.3%
|
59.9%
|
| Operating Margin |
12.7%
|
50.8%
|
| Return on Equity |
110.5%
|
35.1%
|
| Dividend Yield |
2.44% |
1.05% |
| FCF Yield |
3.37%
|
1.85%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and a rapidly growing Pro contractor segment bolstered by the SRS Distribution acquisition. The stock has declined 21% from its $427 high to $337, but now trades at 2.28x P/S, near the 5-year median of 2.31x, and 26.5x P/E which is above the 5-year median of 23.5x. EPS declined 4.6% in …
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 |
HD |
TSM |
| Zone Low |
$285.00 |
$265.00 |
| Zone High |
$320.00 |
$310.00 |
| In Buy Zone? |
No
|
No
|