TSM vs. VRTX
TSM (Taiwan Semiconductor Manufacturing Company Limited) and VRTX (Vertex Pharmaceuticals Incorporated) are both stocks. TSM operates in Semiconductors (Technology), while VRTX operates in Biotechnology (Healthcare). Over the past 10 years, TSM returned 35.80%/yr vs 17.15%/yr for VRTX. At a 0.29 correlation, their price movements are largely independent.
Performance
TSM vs. VRTX - Performance Comparison
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Returns By Period
In the year-to-date period, TSM achieves a 40.22% return, which is significantly higher than VRTX's -1.86% return. Over the past 10 years, TSM has outperformed VRTX with an annualized return of 35.80%, while VRTX has yielded a comparatively lower 17.15% annualized return.
TSM
- 1D
- 0.68%
- 1M
- 1.72%
- YTD
- 40.22%
- 6M
- 45.91%
- 1Y
- 103.01%
- 3Y*
- 60.80%
- 5Y*
- 31.30%
- 10Y*
- 35.80%
VRTX
- 1D
- -0.03%
- 1M
- -1.22%
- YTD
- -1.86%
- 6M
- -1.57%
- 1Y
- -2.31%
- 3Y*
- 9.16%
- 5Y*
- 18.18%
- 10Y*
- 17.15%
TSM vs. VRTX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
VRTX Vertex Pharmaceuticals Incorporated | -1.86% | 12.58% | -1.03% | 40.90% | 31.50% | -7.08% | 7.94% | 32.13% | 10.58% | 103.42% |
Correlation
The correlation between TSM and VRTX is 0.02, 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 | 0.02 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.09 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.14 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.22 |
Correlation (All Time) Calculated using the full available price history since Oct 9, 1997 | 0.29 |
Over the past year, the correlation between TSM and VRTX has dropped to 0.02 - well below their long-term average of 0.29, suggesting their price drivers have been diverging.
Fundamentals
TSM:
$2.20T
VRTX:
$114.03B
TSM:
NT$373.98
VRTX:
$16.87
TSM:
35.89
VRTX:
26.38
TSM:
1.03
VRTX:
2.19
TSM:
16.87
VRTX:
9.34
TSM:
11.82
VRTX:
4.31
TSM:
NT$4.13T
VRTX:
$12.26B
TSM:
NT$2.55T
VRTX:
$10.57B
TSM:
NT$3.14T
VRTX:
$5.19B
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Return for Risk
TSM vs. VRTX — Risk / Return Rank
TSM
VRTX
TSM vs. VRTX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Taiwan Semiconductor Manufacturing Company Limited (TSM) and Vertex Pharmaceuticals Incorporated (VRTX). 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 | VRTX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.81 | ||
| Sortino ratioReturn per unit of downside risk | +3.20 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.02 | +0.38 |
| Calmar ratioReturn relative to maximum drawdown | 5.48 | -0.14 | +5.62 |
| Martin ratioReturn relative to average drawdown | 19.42 | -0.29 | +19.72 |
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Drawdowns
TSM vs. VRTX - Drawdown Comparison
The maximum TSM drawdown since its inception was -89.08%, roughly equal to the maximum VRTX drawdown of -91.77%. Use the drawdown chart below to compare losses from any high point for TSM and VRTX.
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Drawdown Indicators
| TSM | VRTX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -89.08% | -91.77% | +2.69% |
Max Drawdown (1Y)Largest decline over 1 year | -18.14% | -23.56% | +5.42% |
Max Drawdown (3Y)Largest decline over 3 years | -36.82% | -29.07% | -7.75% |
Max Drawdown (5Y)Largest decline over 5 years | -56.47% | -29.07% | -27.40% |
Max Drawdown (10Y)Largest decline over 10 years | -56.47% | -41.60% | -14.87% |
Current DrawdownCurrent decline from peak | -4.87% | -13.90% | +9.03% |
Average DrawdownAverage peak-to-trough decline | -42.85% | -37.73% | -5.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.11% | 11.30% | -6.19% |
Volatility
TSM vs. VRTX - Volatility Comparison
Taiwan Semiconductor Manufacturing Company Limited (TSM) has a higher volatility of 13.42% compared to Vertex Pharmaceuticals Incorporated (VRTX) at 7.47%. This indicates that TSM's price experiences larger fluctuations and is considered to be riskier than VRTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TSM | VRTX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 13.42% | 7.47% | +5.95% |
Volatility (6M)Calculated over the trailing 6-month period | 28.65% | 20.71% | +7.94% |
Volatility (1Y)Calculated over the trailing 1-year period | 36.69% | 34.13% | +2.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 37.46% | 28.53% | +8.93% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 34.23% | 32.82% | +1.41% |
Dividends
TSM vs. VRTX - Dividend Comparison
TSM's dividend yield for the trailing twelve months is around 0.83%, while VRTX has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VRTX Vertex Pharmaceuticals Incorporated | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Financials
TSM vs. VRTX - Financials Comparison
This section allows you to compare key financial metrics between Taiwan Semiconductor Manufacturing Company Limited and Vertex Pharmaceuticals Incorporated. 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
TSM vs. VRTX - Profitability Comparison
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%.
VRTX - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Vertex Pharmaceuticals Incorporated reported a gross profit of 2.59B and revenue of 2.99B. Therefore, the gross margin over that period was 86.9%.
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%.
VRTX - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Vertex Pharmaceuticals Incorporated reported an operating income of 1.14B and revenue of 2.99B, resulting in an operating margin of 38.1%.
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%.
VRTX - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Vertex Pharmaceuticals Incorporated reported a net income of 1.03B and revenue of 2.99B, resulting in a net margin of 34.5%.
Frequently Asked Questions
TSM and VRTX have a correlation of 0.02, 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 VRTX (7.47%). In terms of maximum drawdown, TSM dropped -89.08% vs VRTX's -91.77%.
TSM currently has the higher Sharpe Ratio (2.71 vs -0.10), 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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