RTX vs TSM: Which Is the Better Buy?
Side-by-side comparison of RTX Corporation and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$366.24
+5153.7% upside to fair value
Grade C
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+5153.7%).
TSM trades at a lower forward P/E
(27.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
RTX |
TSM |
| Current Price |
$172.90 |
$366.24 |
| Fair Value Estimate |
$136.05 |
$19,241.17 |
| Upside to Fair Value |
-21.3%
|
+5153.7%
|
| Market Cap |
$232.8B |
$1,899.5B |
| Forward P/E |
32.1x
|
27.2x
|
| EV / EBITDA |
19.2x
|
17.3x
|
| Price / Sales |
2.6x
|
12.8x
|
| Price / FCF |
27.9x
|
51.6x
|
| Revenue Growth YoY |
+8.7%
|
+36.5%
|
| Gross Margin |
20.2%
|
61.9%
|
| Operating Margin |
10.4%
|
53.2%
|
| Return on Equity |
11.2%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.59%
|
1.94%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Taiwan Semiconductor Manufacturing Company Limited (TSMC) is the world's leading pure-play semiconductor foundry, commanding approximately 60% of the global advanced node foundry market. The company benefits from a durable competitive moat driven by its pioneering foundry model, massive scale, advanced manufacturing capabilities, and strong customer relationships with major technology firms. TSMC…
Accumulation Zones
| Metric |
RTX |
TSM |
| Zone Low |
$102.04 |
$14,430.88 |
| Zone High |
$115.64 |
$16,354.99 |
| In Buy Zone? |
No
|
Yes
|