ON Semiconductor Corporation (ON)vsTaiwan Semiconductor Manufacturing (TSM)
ON
ON Semiconductor Corporation
$75.24
-0.52%
TECHNOLOGY · Cap: $28.69B
TSM
Taiwan Semiconductor Manufacturing
$439.51
-1.75%
TECHNOLOGY · Cap: $2.27T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 79683% more annual revenue ($4.94T vs $6.20B). TSM leads profitability with a 51.1% profit margin vs 10.2%. ON appears more attractively valued with a PEG of 0.17. TSM earns a higher WallStSmart Score of 86/100 (A).
ON
Buy63
out of 100
Grade: C+
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ON.
Margin of Safety
+55.1%
Fair Value
$979.05
Current Price
$439.51
$539.54 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 36.6% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Keeps 51 of every $100 in revenue as profit
Strong operational efficiency at 58.7%
Revenue surging 50.9% year-over-year
Earnings expanding 68.7% YoY
Areas to Watch
Weak financial health signals
Premium valuation, high expectations priced in
Moderate valuation
Trading at 83.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ON
The strongest argument for ON centers on PEG Ratio, EPS Growth. PEG of 0.17 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 : ON
The primary concerns for ON are Piotroski F-Score, P/E Ratio. A P/E of 49.8x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
ON profiles as a value stock while TSM is a growth play — different risk/reward profiles.
ON carries more volatility with a beta of 2.05 — 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 63/100), 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.
ON Semiconductor Corporation
TECHNOLOGY · SEMICONDUCTORS · USA
ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. The company is headquartered in Phoenix, Arizona.
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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