Cloudflare Inc (NET)vsTaiwan Semiconductor Manufacturing (TSM)
NET
Cloudflare Inc
$268.73
+0.46%
TECHNOLOGY · Cap: $96.38B
TSM
Taiwan Semiconductor Manufacturing
$415.17
+0.68%
TECHNOLOGY · Cap: $2.18T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 176139% more annual revenue ($4.10T vs $2.33B). TSM leads profitability with a 46.5% profit margin vs -3.7%. TSM appears more attractively valued with a PEG of 1.31. TSM earns a higher WallStSmart Score of 84/100 (A-).
NET
Hold35
out of 100
Grade: F
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.1%
Fair Value
$167.77
Current Price
$268.73
$100.96 premium
Margin of Safety
+49.5%
Fair Value
$839.44
Current Price
$415.17
$424.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 33.5% year-over-year
Large-cap with strong market position
Mega-cap, among the largest globally
Every $100 of equity generates 33 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
Expensive relative to growth rate
0.0% earnings growth
Weak financial health signals
Trading at 62.2x book value
Premium valuation, high expectations priced in
Trading at 63.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : NET
The strongest argument for NET centers on Revenue Growth, Market Cap. Revenue growth of 33.5% 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 : NET
The primary concerns for NET are PEG Ratio, EPS Growth, Piotroski F-Score. Debt-to-equity of 2.31 is elevated, increasing financial risk.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
NET profiles as a hypergrowth stock while TSM is a growth play — different risk/reward profiles.
NET carries more volatility with a beta of 1.67 — 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 35/100), backed by strong 46.5% margins and 35.1% revenue growth. 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.
Cloudflare Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
CloudFlare, Inc. operates a cloud platform that offers a range of network services to companies around the world. The company is headquartered in San Francisco, California.
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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