NFLX vs. TSM
NFLX (Netflix, Inc.) and TSM (Taiwan Semiconductor Manufacturing Company Limited) are both stocks. NFLX operates in Entertainment (Communication Services), while TSM operates in Semiconductors (Technology). Over the past 10 years, NFLX returned 23.92%/yr vs 35.80%/yr for TSM. At a 0.31 correlation, their price movements are largely independent.
Performance
NFLX vs. TSM - Performance Comparison
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Returns By Period
In the year-to-date period, NFLX achieves a -14.31% return, which is significantly lower than TSM's 40.22% return. Over the past 10 years, NFLX has underperformed TSM with an annualized return of 23.92%, while TSM has yielded a comparatively higher 35.80% annualized return.
NFLX
- 1D
- -1.14%
- 1M
- -8.25%
- YTD
- -14.31%
- 6M
- -15.60%
- 1Y
- -33.88%
- 3Y*
- 22.62%
- 5Y*
- 10.45%
- 10Y*
- 23.92%
TSM
- 1D
- 0.68%
- 1M
- 6.28%
- YTD
- 40.22%
- 6M
- 45.91%
- 1Y
- 98.93%
- 3Y*
- 60.80%
- 5Y*
- 31.30%
- 10Y*
- 35.80%
NFLX vs. TSM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
NFLX Netflix, Inc. | -14.31% | 5.19% | 83.07% | 65.11% | -51.05% | 11.41% | 67.11% | 20.89% | 39.44% | 55.06% |
TSM Taiwan Semiconductor Manufacturing Company Limited | 40.22% | 55.91% | 92.58% | 42.33% | -36.75% | 12.09% | 92.67% | 64.85% | -3.50% | 41.46% |
Correlation
The correlation between NFLX and TSM is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.03 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.26 |
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 May 23, 2002 | 0.31 |
Over the past year, the correlation between NFLX and TSM has dropped to 0.03 - well below their long-term average of 0.31, suggesting their price drivers have been diverging.
Fundamentals
NFLX:
$345.34B
TSM:
$2.20T
NFLX:
$3.09
TSM:
NT$373.98
NFLX:
25.99
TSM:
35.89
NFLX:
1.03
TSM:
1.03
NFLX:
7.41
TSM:
16.87
NFLX:
11.09
TSM:
11.82
NFLX:
$46.89B
TSM:
NT$4.13T
NFLX:
$22.99B
TSM:
NT$2.55T
NFLX:
$26.91B
TSM:
NT$3.14T
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Return for Risk
NFLX vs. TSM — Risk / Return Rank
NFLX
TSM
NFLX vs. TSM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Netflix, Inc. (NFLX) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| NFLX | TSM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -3.74 | ||
| Sortino ratioReturn per unit of downside risk | -4.76 | ||
| Omega ratioGain probability vs. loss probability | 0.81 | 1.40 | -0.59 |
| Calmar ratioReturn relative to maximum drawdown | -0.78 | 5.48 | -6.27 |
| Martin ratioReturn relative to average drawdown | -1.35 | 19.42 | -20.77 |
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Drawdowns
NFLX vs. TSM - Drawdown Comparison
The maximum NFLX drawdown since its inception was -81.99%, smaller than the maximum TSM drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for NFLX and TSM.
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Drawdown Indicators
| NFLX | TSM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -81.99% | -89.08% | +7.09% |
Max Drawdown (1Y)Largest decline over 1 year | -43.35% | -18.14% | -25.21% |
Max Drawdown (3Y)Largest decline over 3 years | -43.35% | -36.82% | -6.53% |
Max Drawdown (5Y)Largest decline over 5 years | -75.95% | -56.47% | -19.48% |
Max Drawdown (10Y)Largest decline over 10 years | -75.95% | -56.47% | -19.48% |
Current DrawdownCurrent decline from peak | -40.01% | -4.87% | -35.14% |
Average DrawdownAverage peak-to-trough decline | -24.91% | -42.85% | +17.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 25.19% | 5.11% | +20.08% |
Volatility
NFLX vs. TSM - Volatility Comparison
The current volatility for Netflix, Inc. (NFLX) is 5.85%, while Taiwan Semiconductor Manufacturing Company Limited (TSM) has a volatility of 13.42%. This indicates that NFLX 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.
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Volatility by Period
| NFLX | TSM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.85% | 13.42% | -7.57% |
Volatility (6M)Calculated over the trailing 6-month period | 24.58% | 28.65% | -4.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 33.05% | 36.69% | -3.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 43.09% | 37.46% | +5.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 41.49% | 34.23% | +7.26% |
Dividends
NFLX vs. TSM - Dividend Comparison
NFLX has not paid dividends to shareholders, while TSM's dividend yield for the trailing twelve months is around 0.83%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NFLX Netflix, Inc. | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
TSM Taiwan Semiconductor Manufacturing Company Limited | 0.83% | 1.00% | 1.18% | 1.78% | 2.49% | 1.57% | 1.56% | 3.46% | 3.64% | 2.32% | 2.61% | 2.54% |
Financials
NFLX vs. TSM - Financials Comparison
This section allows you to compare key financial metrics between Netflix, Inc. and Taiwan Semiconductor Manufacturing Company Limited. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
NFLX vs. TSM - Profitability Comparison
NFLX - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Netflix, Inc. reported a gross profit of 6.36B and revenue of 12.25B. Therefore, the gross margin over that period was 51.9%.
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%.
NFLX - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Netflix, Inc. reported an operating income of 3.96B and revenue of 12.25B, resulting in an operating margin of 32.3%.
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%.
NFLX - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Netflix, Inc. reported a net income of 5.28B and revenue of 12.25B, resulting in a net margin of 43.1%.
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
NFLX and TSM have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TSM has higher volatility (13.42%) compared to NFLX (5.85%). In terms of maximum drawdown, NFLX dropped -81.99% vs TSM's -89.08%.
TSM currently has the higher Sharpe Ratio (2.71 vs -1.03), 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.
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