WallStSmart

Robinhood Markets Inc (HOOD)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 88864% more annual revenue ($4.10T vs $4.61B). TSM leads profitability with a 46.5% profit margin vs 41.1%. TSM trades at a lower P/E of 36.0x. TSM earns a higher WallStSmart Score of 84/100 (A-).

HOOD

Buy

56

out of 100

Grade: C

Growth: 7.3Profit: 8.5Value: 4.7Quality: 3.5
Piotroski: 3/9Altman Z: 0.41

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 HOOD.

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

HOOD6 strengths · Avg: 9.0/10
Profit MarginProfitability
41.1%10/10

Keeps 41 of every $100 in revenue as profit

Operating MarginProfitability
38.5%10/10

Strong operational efficiency at 38.5%

Market CapQuality
$68.69B9/10

Large-cap with strong market position

Return on EquityProfitability
21.5%9/10

Every $100 of equity generates 22 in profit

Revenue GrowthGrowth
15.1%8/10

15.1% revenue growth

Free Cash FlowQuality
$1.19B8/10

Generating 1.2B in free cash flow

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

HOOD4 concerns · Avg: 3.5/10
P/E RatioValuation
37.0x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
2.7%4/10

2.7% earnings growth

Debt/EquityHealth
1.683/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : HOOD

The strongest argument for HOOD centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 41.1% and operating margin at 38.5%. Revenue growth of 15.1% 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 : HOOD

The primary concerns for HOOD are P/E Ratio, EPS Growth, Debt/Equity. Debt-to-equity of 1.68 is elevated, increasing financial risk.

Bear Case : TSM

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

Key Dynamics to Monitor

HOOD carries more volatility with a beta of 2.29 — 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 CAPITAL MARKETS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (84/100 vs 56/100), 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.

Robinhood Markets Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Robinhood Markets Inc (HOOD) is a pioneering fintech company that has transformed the retail investing landscape since its inception in 2013 by providing a commission-free trading platform accessible via an intuitive mobile app. The firm caters to a diverse user base, allowing access to a wide array of investment vehicles, including stocks, ETFs, options, and cryptocurrencies, while prioritizing financial literacy and inclusivity. By offering innovative features such as fractional shares and cash management solutions, Robinhood positions itself as a key player in the digital brokerage sector, appealing to a new generation of investors seeking efficient and transparent ways to engage with financial markets.

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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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