Comparing e.Digital (OTCMKTS:EDIG) & Taiwan Semiconductor Manufacturing (NYSE:TSM)

e.Digital (OTCMKTS:EDIG) and Taiwan Semiconductor Manufacturing (NYSE:TSM) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Profitability

This table compares e.Digital and Taiwan Semiconductor Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
e.Digital	N/A	N/A	N/A
Taiwan Semiconductor Manufacturing	37.85%	25.54%	16.04%

Earnings & Valuation

This table compares e.Digital and Taiwan Semiconductor Manufacturing’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
e.Digital	$700,000.00	0.04	-$1.27 million	N/A	N/A
Taiwan Semiconductor Manufacturing	$69.30 billion	12.16	$27.82 billion	$5.25	30.95

Taiwan Semiconductor Manufacturing has higher revenue and earnings than e.Digital.

Risk and Volatility

e.Digital has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for e.Digital and Taiwan Semiconductor Manufacturing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
e.Digital	0	0	0	0	N/A
Taiwan Semiconductor Manufacturing	0	1	4	0	2.80

Taiwan Semiconductor Manufacturing has a consensus price target of $200.00, suggesting a potential upside of 23.08%. Given Taiwan Semiconductor Manufacturing’s higher probable upside, analysts plainly believe Taiwan Semiconductor Manufacturing is more favorable than e.Digital.

Institutional and Insider Ownership

16.5% of Taiwan Semiconductor Manufacturing shares are owned by institutional investors. 2.3% of e.Digital 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, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Taiwan Semiconductor Manufacturing beats e.Digital on 9 of the 11 factors compared between the two stocks.

About e.Digital

e.Digital Corporation engages in developing and marketing an intellectual property portfolio of context and interpersonal awareness systems, advanced data security technologies, secure communication technologies, and other technologies. It is involved in licensing and enforcing its Nunchi portfolio of patents related to context and interpersonal awareness systems; microSignet data security technology based on characteristics in semi-conductors; Synap security system, method, and apparatus to solve the issues of encryption key generation and exchange; and other technologies. The company was formerly known as Norris Communications, Inc. and changed its name to e.Digital Corporation in January 1999. e.Digital Corporation was founded in 1988 and is based in San Diego, California.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, 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 a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also offers customer and engineering support services; manufactures masks; and invests in technology start-up companies; researches, designs, develops, manufactures, packages, tests, and sells color filters; and provides investment services. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.