Arrow Electronics Inc (ARW)vsTaiwan Semiconductor Manufacturing (TSM)
ARW
Arrow Electronics Inc
$187.83
+0.99%
TECHNOLOGY · Cap: $9.40B
TSM
Taiwan Semiconductor Manufacturing
$396.06
+0.57%
TECHNOLOGY · Cap: $2.04T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 13202% more annual revenue ($4.10T vs $30.85B). TSM leads profitability with a 46.5% profit margin vs 1.9%. ARW appears more attractively valued with a PEG of 0.95. TSM earns a higher WallStSmart Score of 84/100 (A-).
ARW
Strong Buy69
out of 100
Grade: B-
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+67.9%
Fair Value
$491.31
Current Price
$187.83
$303.48 discount
Margin of Safety
+72.4%
Fair Value
$1399.41
Current Price
$396.06
$1003.35 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 100.5% YoY
Growing faster than its price suggests
Attractively priced relative to earnings
Revenue surging 20.1% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 58.1%
Revenue surging 35.1% year-over-year
Earnings expanding 58.4% YoY
Areas to Watch
Grey zone — moderate risk
1.9% margin — thin
Operating margin of 3.7%
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 60.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ARW
The strongest argument for ARW centers on Price/Book, EPS Growth, PEG Ratio. Revenue growth of 20.1% demonstrates continued momentum. PEG of 0.95 suggests the stock is reasonably priced for its growth.
Bull Case : TSM
The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.
Bear Case : ARW
The primary concerns for ARW are Altman Z-Score, Profit Margin, Operating Margin. Thin 1.9% margins leave little buffer for downturns.
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 1.25 — expect wider price swings.
TSM is growing revenue faster at 35.1% — sustainability is the question.
TSM generates stronger free cash flow (377.1B), providing more financial flexibility.
Monitor ELECTRONICS & COMPUTER DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (84/100 vs 69/100), backed by strong 46.5% margins and 35.1% revenue growth. ARW offers better value entry with a 67.9% margin of safety. 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.
Arrow Electronics Inc
TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA
Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Centennial, Colorado.
Visit Website →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 ELECTRONICS & COMPUTER DISTRIBUTION Stocks
Want to dig deeper into these stocks?