MS vs TSM: Which Is the Better Buy?
Side-by-side comparison of Morgan Stanley and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
Morgan Stanley · Financial Services
$218.37
+45.0% upside to fair value
Grade B
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$409.74
+45.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
MS trades at a lower forward P/E
(23.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MS |
TSM |
| Current Price |
$218.37 |
$409.74 |
| Fair Value Estimate |
$316.64 |
$594.12 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$344.4B |
$2,125.1B |
| Forward P/E |
23.6x
|
38.8x
|
| EV / EBITDA |
9.8x
|
17.6x
|
| Price / Sales |
2.7x
|
14.5x
|
| Price / FCF |
-327.4x
|
58.4x
|
| Revenue Growth YoY |
+22.4%
|
+36.0%
|
| Gross Margin |
56.6%
|
61.9%
|
| Operating Margin |
28.4%
|
53.2%
|
| Return on Equity |
23.4%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
—
|
1.71%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Morgan Stanley is a leading global financial services firm specializing in capital markets, wealth management, and investment banking. The company demonstrates high business quality with a strong return on equity of 23.4% and robust revenue growth of 22.4% in the most recent quarter, alongside impressive earnings growth of 57.7% in the same period. Its gross margin of 56.6% and net margin of 20.2…
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 |
MS |
TSM |
| Zone Low |
$237.48 |
$445.59 |
| Zone High |
$269.14 |
$505.00 |
| In Buy Zone? |
Yes
|
Yes
|