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Diodes (NASDAQ:DIOD – Get Rating) and Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Rating) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.
Earnings & Valuation
This table compares Diodes and Taiwan Semiconductor Manufacturing’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diodes | $1.81 billion | 1.80 | $228.76 million | $5.74 | 12.49 |
| Taiwan Semiconductor Manufacturing | $56.82 billion | N/A | $21.35 billion | $4.56 | 19.45 |
Taiwan Semiconductor Manufacturing has higher revenue and earnings than Diodes. Diodes is trading at a lower price-to-earnings ratio than Taiwan Semiconductor Manufacturing, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings for Diodes and Taiwan Semiconductor Manufacturing, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diodes | 0 | 1 | 1 | 0 | 2.50 |
| Taiwan Semiconductor Manufacturing | 0 | 3 | 5 | 0 | 2.63 |
Diodes currently has a consensus target price of $102.33, indicating a potential upside of 42.78%. Taiwan Semiconductor Manufacturing has a consensus target price of $139.29, indicating a potential upside of 57.07%. Given Taiwan Semiconductor Manufacturing’s stronger consensus rating and higher possible upside, analysts clearly believe Taiwan Semiconductor Manufacturing is more favorable than Diodes.
Profitability
This table compares Diodes and Taiwan Semiconductor Manufacturing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Diodes | 13.98% | 21.94% | 13.13% |
| Taiwan Semiconductor Manufacturing | 38.44% | 30.84% | 18.63% |
Risk and Volatility
Diodes has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.
Insider & Institutional Ownership
93.7% of Diodes shares are owned by institutional investors. 2.6% of Diodes shares are owned by company insiders. Comparatively, 1.1% of Taiwan Semiconductor Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Taiwan Semiconductor Manufacturing beats Diodes on 9 of the 13 factors compared between the two stocks.
About Diodes (Get Rating)
Diodes Incorporated designs, manufactures, and supplies application-specific standard products in the discrete, logic, analog, and mixed-signal semiconductor markets worldwide. It focuses on low pin count semiconductor devices with one or more active or passive components. The company offers discrete semiconductor products, such as MOSFET, TVS, and performance Schottky rectifiers; GPP bridges and retifiers, and performance Schottky diodes; Zener and performance Zener diodes, including tight tolerance and low operating current type; standard, fast, super-fast, and ultra-fast recovery rectifiers; bridge rectifiers; switching diodes; small signal bipolar and prebiased transistors; thyristor surge protection devices; and transient voltage suppressors. It also provides analog products, such as power management devices comprising AC-DC and DC-DC converters, USB power switches, and low dropout and linear voltage regulators; linear devices, such as operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, including hall-effect sensors and motor drivers. The company offers mixed-signal products, such as high speed mux/demux products, digital switches, interfaces, redrivers, universal level shifters/voltage translator, clock ICs, and packet switches; standard logic products comprising low-voltage complementary metal-oxide-semiconductor (CMOS) and high-speed CMOS devices; ultra-low power CMOS logic products and analog switches; multichip products and co-packaged discrete, analog, and mixed-signal silicon in miniature packages; silicon and silicon epitaxial wafers; and crystals and oscillators. It sells its products to the consumer electronics, computing, communications, industrial, and automotive markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.
About Taiwan Semiconductor Manufacturing (Get Rating)
Taiwan Semiconductor Manufacturing Company Limited manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides complementary metal oxide silicon wafer fabrication processes to manufacture logic, mixed-signal, radio frequency, and embedded memory semiconductors. The company also offers customer support, account management, and engineering services, as well as manufactures masks. Its products are used in mobile devices, high performance computing, automotive electronics, and internet of things markets. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.
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