WallStSmart

Monolithic Power Systems Inc (MPWR)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 138682% more annual revenue ($4.10T vs $2.96B). TSM leads profitability with a 46.5% profit margin vs 23.0%. TSM appears more attractively valued with a PEG of 1.25. TSM earns a higher WallStSmart Score of 84/100 (A-).

MPWR

Strong Buy

68

out of 100

Grade: B-

Growth: 8.7Profit: 8.5Value: 3.7Quality: 6.8
Piotroski: 1/9Altman Z: 6.86

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 MPWR.

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

MPWR6 strengths · Avg: 9.0/10
Operating MarginProfitability
30.0%10/10

Strong operational efficiency at 30.0%

Altman Z-ScoreHealth
6.8610/10

Safe zone — low bankruptcy risk

Market CapQuality
$77.43B9/10

Large-cap with strong market position

Profit MarginProfitability
23.0%9/10

Keeps 23 of every $100 in revenue as profit

Revenue GrowthGrowth
26.1%8/10

Revenue surging 26.1% year-over-year

EPS GrowthGrowth
39.5%8/10

Earnings expanding 39.5% YoY

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

MPWR4 concerns · Avg: 2.8/10
PEG RatioValuation
2.174/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

P/E RatioValuation
112.3x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.1x2/10

Trading at 22.1x book value

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 : MPWR

The strongest argument for MPWR centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 23.0% and operating margin at 30.0%. Revenue growth of 26.1% 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 : MPWR

The primary concerns for MPWR are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 112.3x leaves little room for execution misses.

Bear Case : TSM

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

Key Dynamics to Monitor

MPWR carries more volatility with a beta of 1.74 — 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 SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (84/100 vs 68/100), backed by strong 46.5% margins and 35.1% revenue growth. Both earn "Exceptional Buy" and "Strong 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.

Monolithic Power Systems Inc

TECHNOLOGY · SEMICONDUCTORS · USA

Monolithic Power Systems, Inc. is an American, publicly traded company headquartered in Kirkland, Washington. The company provides power circuits for systems found in cloud computing, telecom infrastructures, automotive, industrial applications and consumer applications.

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?