Analog Devices Inc (ADI)vsTaiwan Semiconductor Manufacturing (TSM)
ADI
Analog Devices Inc
$309.43
-0.33%
TECHNOLOGY · Cap: $151.07B
TSM
Taiwan Semiconductor Manufacturing
$329.24
-2.82%
TECHNOLOGY · Cap: $1.79T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 32299% more annual revenue ($3.81T vs $11.76B). TSM leads profitability with a 45.1% profit margin vs 23.0%. ADI appears more attractively valued with a PEG of 0.77. TSM earns a higher WallStSmart Score of 82/100 (A-).
ADI
Strong Buy75
out of 100
Grade: B
TSM
Exceptional Buy82
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-20.6%
Fair Value
$256.46
Current Price
$309.43
$52.97 premium
Margin of Safety
+20.1%
Fair Value
$482.51
Current Price
$329.24
$153.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.1%
Revenue surging 30.4% year-over-year
Earnings expanding 116.7% YoY
Large-cap with strong market position
Keeps 23 of every $100 in revenue as profit
Growing faster than its price suggests
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 45 of every $100 in revenue as profit
Strong operational efficiency at 53.9%
Generating 388.2B in free cash flow
Safe zone — low bankruptcy risk
Areas to Watch
ROE of 7.9% — below average capital efficiency
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 50.3x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ADI
The strongest argument for ADI centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 23.0% and operating margin at 33.1%. Revenue growth of 30.4% demonstrates continued momentum.
Bull Case : TSM
The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.
Bear Case : ADI
The primary concerns for ADI are Return on Equity, P/E Ratio. A P/E of 56.5x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
TSM carries more volatility with a beta of 1.28 — expect wider price swings.
ADI is growing revenue faster at 30.4% — sustainability is the question.
TSM generates stronger free cash flow (388.2B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (82/100 vs 75/100), backed by strong 45.1% margins and 20.5% revenue growth. Both earn "Exceptional Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Analog Devices Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Analog Devices, Inc. (ADI), also known simply as Analog, is an American multinational semiconductor company specializing in data conversion, signal processing and power management technology, headquartered in Wilmington, Massachusetts.
Taiwan Semiconductor Manufacturing
TECHNOLOGY · SEMICONDUCTORS · USA
Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of Taiwan's largest companies, the world's most valuable semiconductor company, and the world's largest dedicated independent (pure-play) semiconductor foundry, with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. It is majority owned by foreign investors.
Visit Website →Compare with Other SEMICONDUCTORS Stocks
Want to dig deeper into these stocks?