MA vs TSM: Which Is the Better Buy?

Side-by-side comparison of Mastercard Incorporated and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-04-11.
Mastercard Incorporated · Financial Services
$498.66
+22.3% upside to fair value
High Conviction Grade A-
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$365.90
-3.8% upside to fair value
Med Conviction Grade B+
QuantHub Verdict
MA has more upside to fair value (+22.3%). MA trades at a lower forward P/E (25.5x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric MA TSM
Current Price $498.66 $365.90
Fair Value Estimate $610.00 $352.00
Upside to Fair Value +22.3% -3.8%
Market Cap $445.0B $1,897.7B
Forward P/E 25.5x 26.0x
EV / EBITDA 22.4x 18.1x
Price / Sales 13.6x 13.3x
Price / FCF 26.0x 54.0x
Revenue Growth YoY +16.4% +33.0%
Gross Margin 83.4% 59.9%
Operating Margin 59.2% 50.8%
Return on Equity 198.4% 35.1%
Dividend Yield 0.65% 1.05%
FCF Yield 3.84% 1.85%
Analyst Consensus Strong Buy Strong Buy
Investment Thesis
MA — Mastercard Incorporated
Mastercard operates one of the world's two dominant payment networks, processing over $9 trillion in gross dollar volume annually across 220+ countries. The business generates 83% gross margins and 46% net margins with zero credit risk because Mastercard never lends money, only collecting tolls on every transaction. Value-Added Services (analytics, fraud prevention, cybersecurity) now comprise 41…
TSM — Taiwan Semiconductor Manufacturing Company Limited
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 MA TSM
Zone Low $460.00 $265.00
Zone High $515.00 $310.00
In Buy Zone? Yes No
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