WallStSmart

MKS Instruments Inc (MKSI)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 96798% more annual revenue ($3.81T vs $3.93B). TSM leads profitability with a 45.1% profit margin vs 7.5%. TSM appears more attractively valued with a PEG of 1.16. TSM earns a higher WallStSmart Score of 82/100 (A-).

MKSI

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 5.5Value: 3.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.20

TSM

Exceptional Buy

82

out of 100

Grade: A-

Growth: 8.7Profit: 10.0Value: 6.0Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MKSISignificantly Overvalued (-63.6%)

Margin of Safety

-63.6%

Fair Value

$158.37

Current Price

$223.18

$64.81 premium

UndervaluedFair: $158.37Overvalued
TSMUndervalued (+20.4%)

Margin of Safety

+20.4%

Fair Value

$484.85

Current Price

$326.74

$158.11 discount

UndervaluedFair: $484.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MKSI0 strengths · Avg: 0/10

No standout strengths identified

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$1.69T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
53.9%10/10

Strong operational efficiency at 53.9%

Free Cash FlowQuality
$388.17B10/10

Generating 388.2B in free cash flow

Altman Z-ScoreHealth
3.8610/10

Safe zone — low bankruptcy risk

Areas to Watch

MKSI4 concerns · Avg: 2.5/10
Profit MarginProfitability
7.5%3/10

7.5% margin — thin

Debt/EquityHealth
1.763/10

Elevated debt levels

P/E RatioValuation
51.1x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.202/10

Distress zone — elevated risk

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
50.0x2/10

Trading at 50.0x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : MKSI

Revenue growth of 10.6% demonstrates continued momentum. PEG of 1.32 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 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.

Bear Case : MKSI

The primary concerns for MKSI are Profit Margin, Debt/Equity, P/E Ratio. A P/E of 51.1x leaves little room for execution misses. Debt-to-equity of 1.76 is elevated, increasing financial risk.

Bear Case : TSM

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

Key Dynamics to Monitor

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

MKSI carries more volatility with a beta of 1.92 — expect wider price swings.

TSM is growing revenue faster at 20.5% — sustainability is the question.

TSM generates stronger free cash flow (388.2B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (82/100 vs 57/100), backed by strong 45.1% margins and 20.5% 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.

MKS Instruments Inc

TECHNOLOGY · SCIENTIFIC & TECHNICAL INSTRUMENTS · USA

MKS Instruments, Inc. provides instruments, systems, subsystems, and process control solutions that measure, monitor, deliver, analyze, power, and control critical parameters of manufacturing processes globally. The company is headquartered in Andover, Massachusetts.

Visit Website →

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.

Visit Website →

Want to dig deeper into these stocks?