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 2026-09-26.
Honeywell International Inc. · Industrials
$212.55
-8.5% upside to fair value
Med Conviction
Grade C
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+13.9%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HON |
TSM |
| Current Price |
$212.55 |
$452.00 |
| Fair Value Estimate |
$194.50 |
$515.00 |
| Upside to Fair Value |
-8.5%
|
+13.9%
|
| Market Cap |
$67.4B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
7.4x
|
19.2x
|
| Price / Sales |
1.9x
|
0.5x
|
| Price / FCF |
16.4x
|
2.1x
|
| Revenue Growth YoY |
-6.1%
|
+36.0%
|
| Gross Margin |
36.6%
|
64.2%
|
| Operating Margin |
14.1%
|
56.0%
|
| Return on Equity |
41.7%
|
39.3%
|
| Dividend Yield |
2.09% |
0.96% |
| FCF Yield |
6.11%
|
47.62%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Honeywell International Inc. is a 101,000-employee diversified industrial technology and manufacturing conglomerate, led by CEO Vimal Kapur, spanning Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. Business quality is solid but not exceptional: the company carries a durable intangible-asset and switching-cost moat in aerospace avion…
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 |
HON |
TSM |
| Zone Low |
$145.88 |
$386.25 |
| Zone High |
$165.32 |
$437.75 |
| In Buy Zone? |
No
|
No
|