WallStSmart

CDW Corp (CDW)vsTaiwan Semiconductor Manufacturing (TSM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 20941% more annual revenue ($4.94T vs $23.50B). TSM leads profitability with a 51.1% profit margin vs 4.6%. TSM appears more attractively valued with a PEG of 0.77. TSM earns a higher WallStSmart Score of 86/100 (A).

CDW

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 6.5Value: 6.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.84

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 8.0Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CDWUndervalued (+4.6%)

Margin of Safety

+4.6%

Fair Value

$141.43

Current Price

$157.00

$15.57 discount

UndervaluedFair: $141.43Overvalued
TSMUndervalued (+61.5%)

Margin of Safety

+61.5%

Fair Value

$976.07

Current Price

$375.44

$600.63 discount

UndervaluedFair: $976.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CDW1 strengths · Avg: 10.0/10
Return on EquityProfitability
41.7%10/10

Every $100 of equity generates 42 in profit

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.27T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.5%10/10

Every $100 of equity generates 37 in profit

Profit MarginProfitability
51.1%10/10

Keeps 51 of every $100 in revenue as profit

Operating MarginProfitability
58.7%10/10

Strong operational efficiency at 58.7%

Revenue GrowthGrowth
50.9%10/10

Revenue surging 50.9% year-over-year

EPS GrowthGrowth
68.7%10/10

Earnings expanding 68.7% YoY

Areas to Watch

CDW4 concerns · Avg: 3.8/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

EPS GrowthGrowth
4.9%4/10

4.9% earnings growth

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Profit MarginProfitability
4.6%3/10

4.6% margin — thin

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
28.3x4/10

Moderate valuation

Price/BookValuation
71.6x2/10

Trading at 71.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CDW

The strongest argument for CDW centers on Return on Equity. PEG of 1.34 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 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.

Bear Case : CDW

The primary concerns for CDW are Price/Book, EPS Growth, Altman Z-Score. Debt-to-equity of 2.76 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.

Bear Case : TSM

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

Key Dynamics to Monitor

CDW profiles as a value stock while TSM is a growth play — different risk/reward profiles.

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.

Bottom Line

TSM scores higher overall (86/100 vs 59/100), backed by strong 51.1% margins and 50.9% 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.

CDW Corp

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

CDW Corporation, headquartered in Lincolnshire, Illinois, is a provider of technology products and services for business, government and education.

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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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