Netflix Inc (NFLX)vsTaiwan Semiconductor Manufacturing (TSM)
NFLX
Netflix Inc
$92.28
+1.50%
COMMUNICATION SERVICES · Cap: $385.67B
TSM
Taiwan Semiconductor Manufacturing
$347.75
+1.31%
TECHNOLOGY · Cap: $1.71T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 8330% more annual revenue ($3.81T vs $45.18B). TSM leads profitability with a 45.1% profit margin vs 24.3%. TSM appears more attractively valued with a PEG of 1.17. TSM earns a higher WallStSmart Score of 82/100 (A-).
NFLX
Strong Buy70
out of 100
Grade: B
TSM
Exceptional Buy82
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+22.1%
Fair Value
$118.40
Current Price
$92.28
$26.12 discount
Margin of Safety
+20.3%
Fair Value
$483.91
Current Price
$347.75
$136.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Safe zone — low bankruptcy risk
Keeps 24 of every $100 in revenue as profit
Strong operational efficiency at 24.5%
17.6% revenue growth
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 45 of every $100 in revenue as profit
Strong operational efficiency at 53.9%
Generating 388.2B in free cash flow
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 14.6x book value
Premium valuation, high expectations priced in
Trading at 52.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : NFLX
The strongest argument for NFLX centers on Market Cap, Return on Equity, Altman Z-Score. Profitability is solid with margins at 24.3% and operating margin at 24.5%. Revenue growth of 17.6% 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 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.
Bear Case : NFLX
The primary concerns for NFLX are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
NFLX carries more volatility with a beta of 1.71 — 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.
Monitor ENTERTAINMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (82/100 vs 70/100), backed by strong 45.1% margins and 20.5% revenue growth. NFLX offers better value entry with a 22.1% margin of safety. 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.
Netflix Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.
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.
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