WallStSmart

Cognizant Technology Solutions Corp Class A (CTSH)vsTaiwan Semiconductor Manufacturing (TSM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 22748% more annual revenue ($4.94T vs $21.64B). TSM leads profitability with a 51.1% profit margin vs 10.3%. TSM appears more attractively valued with a PEG of 0.77. TSM earns a higher WallStSmart Score of 86/100 (A).

CTSH

Buy

63

out of 100

Grade: C+

Growth: 4.0Profit: 7.5Value: 8.7Quality: 8.5
Piotroski: 5/9Altman Z: 4.49

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

CTSHUndervalued (+74.1%)

Margin of Safety

+74.1%

Fair Value

$273.42

Current Price

$64.72

$208.70 discount

UndervaluedFair: $273.42Overvalued
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

CTSH5 strengths · Avg: 8.6/10
Altman Z-ScoreHealth
4.4910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.978/10

Growing faster than its price suggests

P/E RatioValuation
13.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

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

CTSH2 concerns · Avg: 4.0/10
Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

EPS GrowthGrowth
3.8%4/10

3.8% earnings growth

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 : CTSH

The strongest argument for CTSH centers on Altman Z-Score, Debt/Equity, PEG Ratio. PEG of 0.97 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 : CTSH

The primary concerns for CTSH are Revenue Growth, EPS Growth.

Bear Case : TSM

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

Key Dynamics to Monitor

CTSH 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 63/100), backed by strong 51.1% margins and 50.9% revenue growth. CTSH offers better value entry with a 74.1% margin of safety. 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.

Cognizant Technology Solutions Corp Class A

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Cognizant is an American multinational technology company that provides business consulting, information technology and outsourcing services. It is headquartered in Teaneck, New Jersey, United States.

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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