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

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

Institutional & Insider Ownership

16.5% of Taiwan Semiconductor Manufacturing shares are owned by institutional investors. 1.1% of Taiwan Semiconductor Manufacturing shares are owned by insiders. Comparatively, 2.3% of e.Digital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

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

Profitability

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

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

Analyst Recommendations

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

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

Taiwan Semiconductor Manufacturing currently has a consensus price target of $200.00, suggesting a potential upside of 27.53%. Given Taiwan Semiconductor Manufacturing’s higher probable upside, analysts plainly believe Taiwan Semiconductor Manufacturing is more favorable than e.Digital.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taiwan Semiconductor Manufacturing	$2,438.42 billion	0.33	$27.82 billion	$5.25	29.87
e.Digital	$700,000.00	0.04	-$1.27 million	N/A	N/A

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

Summary

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

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.

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.