TSM vs UPS: Which Is the Better Buy?
Side-by-side comparison of Taiwan Semiconductor Manufacturing Company Limited and United Parcel Service, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-23.
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
VS
United Parcel Service, Inc. · Industrials
$99.02
+21.1% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
UPS has more upside to fair value
(+21.1%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
TSM |
UPS |
| Current Price |
$452.00 |
$99.02 |
| Fair Value Estimate |
$515.00 |
$119.92 |
| Upside to Fair Value |
+13.9%
|
+21.1%
|
| Market Cap |
$2,344.3B |
$84.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
19.2x
|
10.2x
|
| Price / Sales |
0.5x
|
0.9x
|
| Price / FCF |
2.1x
|
15.3x
|
| Revenue Growth YoY |
+36.0%
|
+7.6%
|
| Gross Margin |
64.2%
|
16.6%
|
| Operating Margin |
56.0%
|
7.3%
|
| Return on Equity |
39.3%
|
29.1%
|
| Dividend Yield |
0.96% |
6.62% |
| FCF Yield |
47.62%
|
6.52%
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
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…
United Parcel Service is the world's largest integrated package delivery and logistics network, operating U.S. Domestic Package and International Package segments with roughly 460,000 employees and a 119-year operating history. The business quality is medium: the global air-and-ground network, brand, and scale are genuine assets, but the company is exposed to commoditized freight, Amazon volume c…
Accumulation Zones
| Metric |
TSM |
UPS |
| Zone Low |
$386.25 |
$89.94 |
| Zone High |
$437.75 |
$101.93 |
| In Buy Zone? |
No
|
Yes
|