TSM vs. AVAV

Last updated Jul 21, 2026

TSM (Taiwan Semiconductor Manufacturing Company Limited) and AVAV (AeroVironment, Inc.) are both stocks. TSM operates in Semiconductors (Technology), while AVAV operates in Aerospace & Defense (Industrials). Over the past 10 years, TSM returned 33.60%/yr vs 17.89%/yr for AVAV. At a 0.30 correlation, their price movements are largely independent.

Performance

TSM vs. AVAV - Performance Comparison

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

Returns By Period

In the year-to-date period, TSM achieves a 33.07% return, which is significantly higher than AVAV's -41.05% return. Over the past 10 years, TSM has outperformed AVAV with an annualized return of 33.60%, while AVAV has yielded a comparatively lower 17.89% annualized return.

TSM

• 1D: 0.99%
• 1M: -12.94%
• 6M: 18.10%
• YTD: 33.07%
• 1Y: 69.17%
• 3Y*: 62.80%
• 5Y*: 29.92%
• 10Y*: 33.60%
• ALL TIME*: 16.19%

AVAV

• 1D: 0.28%
• 1M: -15.92%
• 6M: -63.70%
• YTD: -41.05%
• 1Y: -47.96%
• 3Y*: 13.91%
• 5Y*: 7.74%
• 10Y*: 17.89%
• ALL TIME*: 9.35%

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

TSM vs. AVAV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TSM Taiwan Semiconductor Manufacturing Company Limited	33.07%	55.91%	92.58%	42.33%	-36.75%	12.09%	92.67%	64.85%	-3.50%	41.46%
AVAV AeroVironment, Inc.	-41.05%	57.18%	22.10%	47.14%	38.09%	-28.62%	40.75%	-9.14%	20.99%	109.32%

Correlation

The correlation between TSM and AVAV is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.28
Correlation (5Y) Calculated over the trailing 5-year period	0.28
Correlation (10Y) Calculated over the trailing 10-year period	0.29
Correlation (All Time) Calculated using the full available price history since Jan 23, 2007	0.30

Fundamentals

Market Cap TSM : $2.09T AVAV : $7.22B
EPS TSM : NT$432.27 AVAV : -$5.41
PS Ratio TSM : 15.18 AVAV : 4.93
PB Ratio TSM : 10.50 AVAV : 1.64
Total Revenue (TTM) TSM : NT$4.45T AVAV : $1.42B
Gross Profit (TTM) TSM : NT$2.86T AVAV : $246.70M
EBITDA (TTM) TSM : NT$3.20T AVAV : -$6.04M

Return for Risk

TSM vs. AVAV — Risk / Return Rank

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

TSM

TSM Risk / Return Rank: 88
TSM Sharpe Ratio Rank: 89
TSM Sortino Ratio Rank: 85
TSM Omega Ratio Rank: 83
TSM Calmar Ratio Rank: 91
TSM Martin Ratio Rank: 93

AVAV

AVAV Risk / Return Rank: 17
AVAV Sharpe Ratio Rank: 16
AVAV Sortino Ratio Rank: 17
AVAV Omega Ratio Rank: 19
AVAV Calmar Ratio Rank: 17
AVAV Martin Ratio Rank: 16

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.

TSM vs. AVAV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Taiwan Semiconductor Manufacturing Company Limited (TSM) and AeroVironment, Inc. (AVAV). 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.

	TSM	AVAV	Difference
Sharpe ratio: Return per unit of total volatility	1.77	-0.66	+2.42
Sortino ratio: Return per unit of downside risk	2.36	-0.75	+3.11
Omega ratio: Gain probability vs. loss probability	1.29	0.91	+0.37
Calmar ratio: Return relative to maximum drawdown	3.83	-0.72	+4.55
Martin ratio: Return relative to average drawdown	12.06	-1.22	+13.28

TSM vs. AVAV - Sharpe Ratio Comparison

The current TSM Sharpe Ratio is 1.77, which is higher than the AVAV Sharpe Ratio of -0.66. The chart below compares the historical Sharpe Ratios of TSM and AVAV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TSM vs. AVAV - Drawdown Comparison

The maximum TSM drawdown since its inception was -89.08%, which is greater than AVAV's maximum drawdown of -66.65%. Use the drawdown chart below to compare losses from any high point for TSM and AVAV.

Drawdown Indicators

	TSM	AVAV	Difference
Max Drawdown Largest peak-to-trough decline	-89.08%	-66.65%	-22.43%
Max Drawdown (1Y) Largest decline over 1 year	-18.14%	-66.65%	+48.51%
Max Drawdown (3Y) Largest decline over 3 years	-36.82%	-66.65%	+29.83%
Max Drawdown (5Y) Largest decline over 5 years	-56.47%	-66.65%	+10.18%
Max Drawdown (10Y) Largest decline over 10 years	-56.47%	-66.65%	+10.18%
Current Drawdown Current decline from peak	-15.76%	-65.21%	+49.45%
Average Drawdown Average peak-to-trough decline	-42.73%	-28.88%	-13.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.76%	39.22%	-33.46%

Volatility

TSM vs. AVAV - Volatility Comparison

The current volatility for Taiwan Semiconductor Manufacturing Company Limited (TSM) is 16.57%, while AeroVironment, Inc. (AVAV) has a volatility of 29.43%. This indicates that TSM experiences smaller price fluctuations and is considered to be less risky than AVAV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TSM	AVAV	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.57%	29.43%	-12.86%
Volatility (6M) Calculated over the trailing 6-month period	31.69%	60.09%	-28.40%
Volatility (1Y) Calculated over the trailing 1-year period	39.45%	73.41%	-33.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	38.06%	57.39%	-19.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.60%	52.82%	-18.22%

Dividends

TSM vs. AVAV - Dividend Comparison

TSM's dividend yield for the trailing twelve months is around 0.88%, while AVAV has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVAV AeroVironment, 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	0.88%	1.00%	1.18%	1.78%	2.49%	1.57%	1.56%	3.46%	3.64%	2.32%	2.61%	2.54%

Financials

TSM vs. AVAV - Profitability Comparison

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

Portfolio components

TSM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, Taiwan Semiconductor Manufacturing Company Limited reported a gross profit of 860.31B and revenue of 1.27T. Therefore, the gross margin over that period was 67.7%.

AVAV - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, AeroVironment, Inc. reported a gross profit of 0.00 and revenue of 80.12M. Therefore, the gross margin over that period was 0.0%.

TSM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Taiwan Semiconductor Manufacturing Company Limited reported an operating income of 766.60B and revenue of 1.27T, resulting in an operating margin of 60.3%.

AVAV - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, AeroVironment, Inc. reported an operating income of 56.94M and revenue of 80.12M, resulting in an operating margin of 71.1%.

TSM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Taiwan Semiconductor Manufacturing Company Limited reported a net income of 706.56B and revenue of 1.27T, resulting in a net margin of 55.6%.

AVAV - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, AeroVironment, Inc. reported a net income of -24.10M and revenue of 80.12M, resulting in a net margin of -30.1%.

Frequently Asked Questions

Can I hold both TSM and AVAV in my portfolio?

TSM and AVAV have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TSM or AVAV?

AVAV has higher volatility (29.43%) compared to TSM (16.57%). In terms of maximum drawdown, TSM dropped -89.08% vs AVAV's -66.65%.

Which has better risk-adjusted returns?

TSM currently has the higher Sharpe Ratio (1.77 vs -0.66), 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.