ON Semiconductor Corporation (ON)vsTaiwan Semiconductor Manufacturing (TSM)
ON
ON Semiconductor Corporation
$59.26
-0.05%
TECHNOLOGY · Cap: $24.09B
TSM
Taiwan Semiconductor Manufacturing
$329.14
-2.85%
TECHNOLOGY · Cap: $1.79T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 63433% more annual revenue ($3.81T vs $6.00B). TSM leads profitability with a 45.1% profit margin vs 2.0%. ON appears more attractively valued with a PEG of 0.23. TSM earns a higher WallStSmart Score of 82/100 (A-).
ON
Hold43
out of 100
Grade: D
TSM
Exceptional Buy82
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-3513.2%
Fair Value
$1.97
Current Price
$59.26
$57.29 premium
Margin of Safety
+20.1%
Fair Value
$482.51
Current Price
$329.14
$153.37 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 150 in profit
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
2.0% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Revenue declined 11.2%
Premium valuation, high expectations priced in
Trading at 50.3x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ON
The strongest argument for ON centers on PEG Ratio, Return on Equity. PEG of 0.23 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 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.
Bear Case : ON
The primary concerns for ON are Profit Margin, Piotroski F-Score, P/E Ratio. A P/E of 206.5x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.
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 1.53 — 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.
Bottom Line
TSM scores higher overall (82/100 vs 43/100), backed by strong 45.1% margins and 20.5% 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.
Visit Website →Compare with Other SEMICONDUCTORS Stocks
Want to dig deeper into these stocks?