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 2026-07-17.
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
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%).
RTX trades at a lower forward P/E
(34.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
RTX |
TSM |
| Current Price |
$185.60 |
$409.74 |
| Fair Value Estimate |
$138.81 |
$594.12 |
| Upside to Fair Value |
-25.2%
|
+45.0%
|
| Market Cap |
$249.9B |
$2,125.1B |
| Forward P/E |
34.3x
|
38.8x
|
| EV / EBITDA |
18.3x
|
17.6x
|
| Price / Sales |
2.8x
|
14.5x
|
| Price / FCF |
29.9x
|
58.4x
|
| Revenue Growth YoY |
+8.7%
|
+36.0%
|
| Gross Margin |
20.2%
|
61.9%
|
| Operating Margin |
10.9%
|
53.2%
|
| Return on Equity |
11.2%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.34%
|
1.71%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue grow…
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 |
RTX |
TSM |
| Zone Low |
$104.11 |
$445.59 |
| Zone High |
$117.99 |
$505.00 |
| In Buy Zone? |
No
|
Yes
|