HON vs TSM: Which Is the Better Buy?
Side-by-side comparison of Honeywell International Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Honeywell International Inc. · Industrials
$235.04
-9.9% 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
TSM has more upside to fair value
(-3.8%).
HON trades at a lower forward P/E
(22.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HON |
TSM |
| Current Price |
$235.04 |
$365.90 |
| Fair Value Estimate |
$211.73 |
$352.00 |
| Upside to Fair Value |
-9.9%
|
-3.8%
|
| Market Cap |
$149.4B |
$1,897.7B |
| Forward P/E |
22.3x
|
26.0x
|
| EV / EBITDA |
16.9x
|
18.1x
|
| Price / Sales |
4.0x
|
13.3x
|
| Price / FCF |
27.7x
|
54.0x
|
| Revenue Growth YoY |
-2.7%
|
+33.0%
|
| Gross Margin |
36.9%
|
59.9%
|
| Operating Margin |
17.7%
|
50.8%
|
| Return on Equity |
33.28%
|
35.1%
|
| Dividend Yield |
1.92% |
1.05% |
| FCF Yield |
3.61%
|
1.85%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Honeywell is a diversified industrial conglomerate in the final stages of a transformative three-way separation into Honeywell Aerospace, Solstice Advanced Materials, and a retained Automation entity, targeting Q3 2026 completion. The business generated 33% ROE and $5.4B in free cash flow on $37.4B revenue in FY2025, supported by a record $37B backlog with 23% organic order growth in Q4. At $235 …
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 |
HON |
TSM |
| Zone Low |
$158.80 |
$265.00 |
| Zone High |
$179.97 |
$310.00 |
| In Buy Zone? |
No
|
No
|