Diamondback Energy Inc (FANG)vsTaiwan Semiconductor Manufacturing (TSM)
FANG
Diamondback Energy Inc
$188.70
-0.92%
ENERGY · Cap: $53.58B
TSM
Taiwan Semiconductor Manufacturing
$411.68
-0.60%
TECHNOLOGY · Cap: $2.18T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 28254% more annual revenue ($4.10T vs $14.47B). TSM leads profitability with a 46.5% profit margin vs 2.0%. TSM appears more attractively valued with a PEG of 1.25. TSM earns a higher WallStSmart Score of 84/100 (A-).
FANG
Hold41
out of 100
Grade: D
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.7%
Fair Value
$305.77
Current Price
$188.70
$117.07 discount
Margin of Safety
+72.3%
Fair Value
$1394.10
Current Price
$411.68
$982.42 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Large-cap with strong market position
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
ROE of 0.5% — below average capital efficiency
2.0% margin — thin
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 62.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : FANG
The strongest argument for FANG centers on Price/Book, Market Cap.
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 : FANG
The primary concerns for FANG are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 196.3x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
FANG profiles as a value stock while TSM is a growth play — different risk/reward profiles.
TSM carries more volatility with a beta of 1.26 — 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 41/100), backed by strong 46.5% margins and 35.1% revenue growth. FANG offers better value entry with a 44.7% margin of safety. Both earn "Exceptional Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Diamondback Energy Inc
ENERGY · OIL & GAS E&P · USA
Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.
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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