Analog Devices Inc (ADI)vsTaiwan Semiconductor Manufacturing (TSM)
ADI
Analog Devices Inc
$428.27
+0.69%
TECHNOLOGY · Cap: $191.62B
TSM
Taiwan Semiconductor Manufacturing
$436.87
+0.60%
TECHNOLOGY · Cap: $2.27T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 35521% more annual revenue ($4.94T vs $13.88B). TSM leads profitability with a 51.1% profit margin vs 29.8%. ADI appears more attractively valued with a PEG of 0.58. TSM earns a higher WallStSmart Score of 86/100 (A).
ADI
Strong Buy74
out of 100
Grade: B
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-82.2%
Fair Value
$214.60
Current Price
$428.27
$213.67 premium
Margin of Safety
+55.1%
Fair Value
$979.05
Current Price
$436.87
$542.18 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 39.5%
Revenue surging 39.6% year-over-year
Earnings expanding 163.5% YoY
Large-cap with strong market position
Keeps 30 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Keeps 51 of every $100 in revenue as profit
Strong operational efficiency at 58.7%
Revenue surging 50.9% year-over-year
Earnings expanding 68.7% YoY
Areas to Watch
Premium valuation, high expectations priced in
Moderate valuation
Trading at 83.4x 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 29.8% and operating margin at 39.5%. Revenue growth of 39.6% 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 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.
Bear Case : ADI
The primary concerns for ADI are P/E Ratio. A P/E of 47.0x 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 1.24 — expect wider price swings.
TSM is growing revenue faster at 50.9% — sustainability is the question.
TSM generates stronger free cash flow (510.1B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 74/100), backed by strong 51.1% margins and 50.9% 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.
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