WallStSmart

NVE Corporation (NVEC)vsTaiwan Semiconductor Manufacturing (TSM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 16081495% more annual revenue ($4.94T vs $30.75M). NVEC leads profitability with a 58.2% profit margin vs 51.1%. TSM appears more attractively valued with a PEG of 0.77. TSM earns a higher WallStSmart Score of 86/100 (A).

NVEC

Buy

56

out of 100

Grade: C

Growth: 2.0Profit: 10.0Value: 6.0Quality: 8.5
Piotroski: 3/9Altman Z: 16.25

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 8.0Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVECOvervalued (-12.9%)

Margin of Safety

-12.9%

Fair Value

$59.90

Current Price

$82.37

$22.47 premium

UndervaluedFair: $59.90Overvalued
TSMUndervalued (+55.1%)

Margin of Safety

+55.1%

Fair Value

$979.05

Current Price

$439.51

$539.54 discount

UndervaluedFair: $979.05Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVEC6 strengths · Avg: 9.7/10
Return on EquityProfitability
30.8%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
58.2%10/10

Keeps 58 of every $100 in revenue as profit

Operating MarginProfitability
54.9%10/10

Strong operational efficiency at 54.9%

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
16.2510/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.848/10

Growing faster than its price suggests

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.27T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.5%10/10

Every $100 of equity generates 37 in profit

Profit MarginProfitability
51.1%10/10

Keeps 51 of every $100 in revenue as profit

Operating MarginProfitability
58.7%10/10

Strong operational efficiency at 58.7%

Revenue GrowthGrowth
50.9%10/10

Revenue surging 50.9% year-over-year

EPS GrowthGrowth
68.7%10/10

Earnings expanding 68.7% YoY

Areas to Watch

NVEC4 concerns · Avg: 2.5/10
Market CapQuality
$351.87M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-8.1%2/10

Revenue declined 8.1%

EPS GrowthGrowth
-4.4%2/10

Earnings declined 4.4%

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
28.3x4/10

Moderate valuation

Price/BookValuation
83.9x2/10

Trading at 83.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : NVEC

The strongest argument for NVEC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 58.2% and operating margin at 54.9%. PEG of 0.84 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 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.

Bear Case : NVEC

The primary concerns for NVEC are Market Cap, Piotroski F-Score, Revenue Growth.

Bear Case : TSM

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

Key Dynamics to Monitor

NVEC profiles as a declining stock while TSM is a growth play — different risk/reward profiles.

NVEC carries more volatility with a beta of 1.29 — expect wider price swings.

TSM is growing revenue faster at 50.9% — sustainability is the question.

TSM generates stronger free cash flow (510.1B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (86/100 vs 56/100), backed by strong 51.1% margins and 50.9% 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.

NVE Corporation

TECHNOLOGY · SEMICONDUCTORS · USA

NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on the spin of the electron to acquire, store, and transmit information in the United States and internationally. The company is headquartered in Eden Prairie, Minnesota.

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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