SBUX vs TSM: Which Is the Better Buy?
Side-by-side comparison of Starbucks Corporation and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-23.
Starbucks Corporation · Consumer Cyclical
$96.67
+12.3% upside to fair value
Med Conviction
Grade C
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+13.9%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
SBUX |
TSM |
| Current Price |
$96.67 |
$452.00 |
| Fair Value Estimate |
$108.52 |
$515.00 |
| Upside to Fair Value |
+12.3%
|
+13.9%
|
| Market Cap |
$110.2B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
22.0x
|
19.2x
|
| Price / Sales |
2.9x
|
0.5x
|
| Price / FCF |
30.4x
|
2.1x
|
| Revenue Growth YoY |
-1.4%
|
+36.0%
|
| Gross Margin |
31.7%
|
64.2%
|
| Operating Margin |
9.4%
|
56.0%
|
| Return on Equity |
-24.3%
|
39.3%
|
| Dividend Yield |
2.57% |
0.96% |
| FCF Yield |
3.29%
|
47.62%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Starbucks is the world's largest specialty coffee retailer, operating company-owned and licensed coffeehouses across North America, International, and Channel Development segments, with a brand that has historically supported premium pricing and global scale. The business quality is currently strained: revenue declined 1.4% year over year in the most recent quarter, TTM operating margin is 9.4%, …
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 |
SBUX |
TSM |
| Zone Low |
$81.39 |
$386.25 |
| Zone High |
$92.24 |
$437.75 |
| In Buy Zone? |
No
|
No
|