ESE vs. TSM

Last updated Jun 9, 2026

ESE (ESCO Technologies Inc.) and TSM (Taiwan Semiconductor Manufacturing Company Limited) are both stocks. Both are in the Technology sector — ESE in Scientific & Technical Instruments, TSM in Semiconductors. Over the past 10 years, ESE returned 22.38%/yr vs 35.71%/yr for TSM. At a 0.31 correlation, their price movements are largely independent.

Performance

ESE vs. TSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ESCO Technologies Inc. (ESE) and Taiwan Semiconductor Manufacturing Company Limited (TSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ESE achieves a 51.28% return, which is significantly higher than TSM's 40.84% return. Over the past 10 years, ESE has underperformed TSM with an annualized return of 22.38%, while TSM has yielded a comparatively higher 35.71% annualized return.

ESE

• 1D: 0.94%
• 1M: -2.55%
• YTD: 51.28%
• 6M: 49.13%
• 1Y: 60.70%
• 3Y*: 45.43%
• 5Y*: 26.97%
• 10Y*: 22.38%

TSM

• 1D: 2.80%
• 1M: 3.67%
• YTD: 40.84%
• 6M: 42.15%
• 1Y: 110.53%
• 3Y*: 63.10%
• 5Y*: 31.67%
• 10Y*: 35.71%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ESE vs. TSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ESE ESCO Technologies Inc.	51.28%	46.96%	14.15%	34.13%	-2.30%	-12.59%	12.01%	41.00%	10.04%	6.79%
TSM Taiwan Semiconductor Manufacturing Company Limited	40.84%	55.91%	92.58%	42.33%	-36.75%	12.09%	92.67%	64.85%	-3.50%	41.46%

Correlation

The correlation between ESE and TSM is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.33
Correlation (10Y) Calculated over the trailing 10-year period	0.34
Correlation (All Time) Calculated using the full available price history since Oct 10, 1997	0.31

The correlation between ESE and TSM shifts across timeframes, from 0.31 (all time) to 0.41 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap ESE : $7.65B TSM : $2.21T
EPS ESE : $11.89 TSM : $373.98
PE Ratio ESE : 24.84 TSM : 1.14
PEG Ratio ESE : 0.41 TSM : 0.03
PS Ratio ESE : 6.13 TSM : 0.54
PB Ratio ESE : 4.77 TSM : 0.38
Total Revenue (TTM) ESE : $1.25B TSM : $4.13T
Gross Profit (TTM) ESE : $271.43M TSM : $2.55T
EBITDA (TTM) ESE : $238.72M TSM : $3.14T

Return for Risk

ESE vs. TSM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ESE

ESE Risk / Return Rank: 87
ESE Sharpe Ratio Rank: 89
ESE Sortino Ratio Rank: 85
ESE Omega Ratio Rank: 84
ESE Calmar Ratio Rank: 89
ESE Martin Ratio Rank: 89

TSM

TSM Risk / Return Rank: 94
TSM Sharpe Ratio Rank: 95
TSM Sortino Ratio Rank: 94
TSM Omega Ratio Rank: 91
TSM Calmar Ratio Rank: 94
TSM Martin Ratio Rank: 96

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ESE vs. TSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ESCO Technologies Inc. (ESE) and Taiwan Semiconductor Manufacturing Company Limited (TSM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ESE	TSM	Difference
Sharpe ratio: Return per unit of total volatility	1.99	3.06	-1.07
Sortino ratio: Return per unit of downside risk	2.63	3.62	-0.99
Omega ratio: Gain probability vs. loss probability	1.33	1.44	-0.11
Calmar ratio: Return relative to maximum drawdown	4.01	6.13	-2.12
Martin ratio: Return relative to average drawdown	10.69	21.94	-11.25
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ESE vs. TSM - Sharpe Ratio Comparison

The current ESE Sharpe Ratio is 1.99, which is lower than the TSM Sharpe Ratio of 3.06. The chart below compares the historical Sharpe Ratios of ESE and TSM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ESE	TSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.99	3.06	-1.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.89	0.85	+0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.74	1.05	-0.31
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.37	+0.05

Drawdowns

ESE vs. TSM - Drawdown Comparison

The maximum ESE drawdown since its inception was -58.54%, smaller than the maximum TSM drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for ESE and TSM.

Drawdown Indicators

	ESE	TSM	Difference
Max Drawdown Largest peak-to-trough decline	-58.54%	-89.08%	+30.54%
Max Drawdown (1Y) Largest decline over 1 year	-15.22%	-18.14%	+2.92%
Max Drawdown (3Y) Largest decline over 3 years	-17.52%	-36.82%	+19.30%
Max Drawdown (5Y) Largest decline over 5 years	-36.88%	-56.47%	+19.59%
Max Drawdown (10Y) Largest decline over 10 years	-45.97%	-56.47%	+10.50%
Current Drawdown Current decline from peak	-12.95%	-4.45%	-8.50%
Average Drawdown Average peak-to-trough decline	-20.25%	-42.87%	+22.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.70%	5.06%	+0.64%

Volatility

ESE vs. TSM - Volatility Comparison

The current volatility for ESCO Technologies Inc. (ESE) is 11.76%, while Taiwan Semiconductor Manufacturing Company Limited (TSM) has a volatility of 12.47%. This indicates that ESE experiences smaller price fluctuations and is considered to be less risky than TSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESE	TSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.76%	12.47%	-0.71%
Volatility (6M) Calculated over the trailing 6-month period	25.28%	28.23%	-2.95%
Volatility (1Y) Calculated over the trailing 1-year period	30.78%	36.40%	-5.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.37%	37.40%	-7.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.51%	34.20%	-3.69%

Dividends

ESE vs. TSM - Dividend Comparison

ESE's dividend yield for the trailing twelve months is around 0.11%, less than TSM's 0.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESE ESCO Technologies Inc.	0.11%	0.16%	0.24%	0.27%	0.37%	0.27%	0.31%	0.43%	0.49%	0.40%	0.56%	0.89%
TSM Taiwan Semiconductor Manufacturing Company Limited	0.78%	1.00%	1.18%	1.78%	2.49%	1.57%	1.56%	3.46%	3.64%	2.32%	2.61%	2.54%

Financials

ESE vs. TSM - Profitability Comparison

The chart below illustrates the profitability comparison between ESCO Technologies Inc. and Taiwan Semiconductor Manufacturing Company Limited over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

ESE - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, ESCO Technologies Inc. reported a gross profit of -119.92M and revenue of 309.34M. Therefore, the gross margin over that period was -38.8%.

TSM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Taiwan Semiconductor Manufacturing Company Limited reported a gross profit of 759.06B and revenue of 1.15T. Therefore, the gross margin over that period was 66.3%.

ESE - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, ESCO Technologies Inc. reported an operating income of 23.86M and revenue of 309.34M, resulting in an operating margin of 7.7%.

TSM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Taiwan Semiconductor Manufacturing Company Limited reported an operating income of 664.08B and revenue of 1.15T, resulting in an operating margin of 58.0%.

ESE - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, ESCO Technologies Inc. reported a net income of 34.73M and revenue of 309.34M, resulting in a net margin of 11.2%.

TSM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Taiwan Semiconductor Manufacturing Company Limited reported a net income of 578.40B and revenue of 1.15T, resulting in a net margin of 50.5%.

Frequently Asked Questions

Can I hold both ESE and TSM in my portfolio?

ESE and TSM have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ESE or TSM?

TSM has higher volatility (12.47%) compared to ESE (11.76%). In terms of maximum drawdown, ESE dropped -58.54% vs TSM's -89.08%.

Which has better risk-adjusted returns?

TSM currently has the higher Sharpe Ratio (3.06 vs 1.99), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.