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 2026-09-23.
RTX Corporation · Industrials
$193.54
+33.0% upside to fair value
Med Conviction
Grade B
High Quality
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
RTX has more upside to fair value
(+33.0%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
RTX |
TSM |
| Current Price |
$193.54 |
$452.00 |
| Fair Value Estimate |
$257.36 |
$515.00 |
| Upside to Fair Value |
+33.0%
|
+13.9%
|
| Market Cap |
$260.9B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
18.1x
|
19.2x
|
| Price / Sales |
2.8x
|
0.5x
|
| Price / FCF |
21.7x
|
2.1x
|
| Revenue Growth YoY |
+14.5%
|
+36.0%
|
| Gross Margin |
20.3%
|
64.2%
|
| Operating Margin |
11.2%
|
56.0%
|
| Return on Equity |
11.8%
|
39.3%
|
| Dividend Yield |
1.46% |
0.96% |
| FCF Yield |
4.6%
|
47.62%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
RTX Corporation is a $260.85 billion aerospace and defense conglomerate operating three segments — Collins Aerospace, Pratt & Whitney, and Raytheon — serving commercial aviation, military, and government customers worldwide with 180,000 employees. The business quality is high: it holds intangible-asset and switching-cost advantages rooted in long-cycle engine programs, proprietary defense electro…
Taiwan Semiconductor Manufacturing Company is the world's largest contract chipmaker, manufacturing advanced logic, mixed-signal, RF, and embedded memory wafers for high-performance computing, smartphones, IoT, and automotive customers from a base of 65,152 employees headquartered in Hsinchu, Taiwan. The business quality is exceptionally high: TTM gross margin is 64.2%, TTM operating margin is 56…
Accumulation Zones
| Metric |
RTX |
TSM |
| Zone Low |
$193.02 |
$386.25 |
| Zone High |
$218.76 |
$437.75 |
| In Buy Zone? |
Yes
|
No
|