WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 100659% more annual revenue ($4.10T vs $4.07B). TSM leads profitability with a 46.5% profit margin vs 8.0%. TSM appears more attractively valued with a PEG of 1.28. TSM earns a higher WallStSmart Score of 84/100 (A-).

MKSI

Buy

61

out of 100

Grade: C+

Growth: 7.3Profit: 6.5Value: 3.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.20

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

MKSISignificantly Overvalued (-37.6%)

Margin of Safety

-37.6%

Fair Value

$188.27

Current Price

$319.71

$131.44 premium

UndervaluedFair: $188.27Overvalued
TSMUndervalued (+72.3%)

Margin of Safety

+72.3%

Fair Value

$1391.51

Current Price

$404.54

$986.97 discount

UndervaluedFair: $1391.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MKSI2 strengths · Avg: 9.0/10
EPS GrowthGrowth
53.2%10/10

Earnings expanding 53.2% YoY

Revenue GrowthGrowth
15.2%8/10

15.2% revenue growth

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.14T10/10

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

MKSI3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.763/10

Elevated debt levels

P/E RatioValuation
65.4x2/10

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
35.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
61.9x2/10

Trading at 61.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : MKSI

The strongest argument for MKSI centers on EPS Growth, Revenue Growth. Revenue growth of 15.2% 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.

Bear Case : MKSI

The primary concerns for MKSI are Debt/Equity, P/E Ratio, Altman Z-Score. A P/E of 65.4x 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 carries more volatility with a beta of 1.97 — 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 SCIENTIFIC & TECHNICAL INSTRUMENTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (84/100 vs 61/100), 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.

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?