WallStSmart

ASML Holding NV ADR (ASML)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 12080% more annual revenue ($4.10T vs $33.69B). TSM leads profitability with a 46.5% profit margin vs 29.7%. TSM appears more attractively valued with a PEG of 1.25. TSM earns a higher WallStSmart Score of 84/100 (A-).

ASML

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 10.0Value: 3.7Quality: 5.0

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ASML.

TSMUndervalued (+72.3%)

Margin of Safety

+72.3%

Fair Value

$1394.10

Current Price

$411.68

$982.42 discount

UndervaluedFair: $1394.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ASML4 strengths · Avg: 9.8/10
Market CapQuality
$595.37B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
52.2%10/10

Every $100 of equity generates 52 in profit

Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Profit MarginProfitability
29.7%9/10

Keeps 30 of every $100 in revenue as profit

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.18T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.2%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
46.5%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
58.1%10/10

Strong operational efficiency at 58.1%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

EPS GrowthGrowth
58.4%10/10

Earnings expanding 58.4% YoY

Areas to Watch

ASML4 concerns · Avg: 2.5/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

P/E RatioValuation
51.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
1396.5x2/10

Trading at 1396.5x book value

Free Cash FlowQuality
$-2.61B2/10

Negative free cash flow — burning cash

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
36.0x4/10

Premium valuation, high expectations priced in

Price/BookValuation
62.9x2/10

Trading at 62.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ASML

The strongest argument for ASML centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 29.7% and operating margin at 36.0%. Revenue growth of 13.2% 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.

Bear Case : ASML

The primary concerns for ASML are PEG Ratio, P/E Ratio, Price/Book. A P/E of 51.0x leaves little room for execution misses.

Bear Case : TSM

The primary concerns for TSM are P/E Ratio, Price/Book.

Key Dynamics to Monitor

ASML profiles as a mature stock while TSM is a growth play — different risk/reward profiles.

ASML carries more volatility with a beta of 1.37 — 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.

Bottom Line

TSM scores higher overall (84/100 vs 62/100), backed by strong 46.5% margins and 35.1% revenue growth. Both earn "Exceptional Buy" and "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.

ASML Holding NV ADR

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

ASML Holding NV develops, produces, markets, sells and services advanced semiconductor equipment systems consisting of lithography, metrology and inspection related systems for memory and logic chip manufacturers. The company is headquartered in Veldhoven, the Netherlands.

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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