LLY vs TSM: Which Is the Better Buy?

Side-by-side comparison of Eli Lilly and Company and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-07-17.
Eli Lilly and Company · Healthcare
$1,179.09
+31.7% upside to fair value
High Conviction Grade A High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$409.74
+45.0% upside to fair value
Grade C High Quality
QuantHub Verdict
TSM has more upside to fair value (+45.0%). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric LLY TSM
Current Price $1,179.09 $409.74
Fair Value Estimate $1,552.32 $594.12
Upside to Fair Value +31.7% +45.0%
Market Cap $1,110.4B $2,125.1B
Forward P/E 38.8x
EV / EBITDA 34.3x 17.6x
Price / Sales 14.6x 14.5x
Price / FCF 77.7x 58.4x
Revenue Growth YoY +55.5% +36.0%
Gross Margin 83.5% 61.9%
Operating Margin 45.9% 53.2%
Return on Equity 101.3% 36.9%
Dividend Yield 0.55% 0%
FCF Yield 1.29% 1.71%
Analyst Consensus Strong Buy Strong Buy
Investment Thesis
LLY — Eli Lilly and Company
Eli Lilly is a global biopharma company whose exceptionally profitable cardiometabolic franchises, led by Mounjaro and Zepbound, are driving a high-quality growth phase: revenue rose 55.5% year over year and earnings rose 168.0% year over year in the most recent quarter, while gross, operating, and net margins were 83.5%, 45.9%, and 35.0%, respectively. Business quality is high because tirzepatid…
TSM — Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor Manufacturing Company Limited (TSM) is a leading semiconductor foundry specializing in advanced chip manufacturing technologies. The company exhibits high business quality with a durable competitive moat driven by cost advantages, intangible assets, and strong brand recognition. It demonstrates robust profitability with a net margin of 47.0% and a return on equity of 36.9%. R…
Accumulation Zones
Metric LLY TSM
Zone Low $1,164.24 $445.59
Zone High $1,319.47 $505.00
In Buy Zone? Yes Yes
← LLY Research    TSM Research →    All Research