ON Semiconductor Corporation (ON)vsTaiwan Semiconductor Manufacturing (TSM)
ON
ON Semiconductor Corporation
$131.82
+5.26%
TECHNOLOGY · Cap: $46.90B
TSM
Taiwan Semiconductor Manufacturing
$415.17
+3.25%
TECHNOLOGY · Cap: $2.19T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 67588% more annual revenue ($4.10T vs $6.06B). TSM leads profitability with a 46.5% profit margin vs 9.5%. ON appears more attractively valued with a PEG of 0.41. TSM earns a higher WallStSmart Score of 84/100 (A-).
ON
Hold47
out of 100
Grade: D+
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ON.
Margin of Safety
+50.5%
Fair Value
$839.44
Current Price
$415.17
$424.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
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
4.7% revenue growth
ROE of 7.9% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 63.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ON
The strongest argument for ON centers on PEG Ratio. PEG of 0.41 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.
Bear Case : ON
The primary concerns for ON are Revenue Growth, Return on Equity, Piotroski F-Score. A P/E of 88.7x 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 1.94 — 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 47/100), 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.
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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