Onto Innovation Inc (ONTO)vsTaiwan Semiconductor Manufacturing (TSM)
ONTO
Onto Innovation Inc
$218.31
-9.75%
TECHNOLOGY · Cap: $13.86B
TSM
Taiwan Semiconductor Manufacturing
$374.67
+7.64%
TECHNOLOGY · Cap: $2.07T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 430763% more annual revenue ($4.44T vs $1.03B). TSM leads profitability with a 49.9% profit margin vs 10.3%. TSM appears more attractively valued with a PEG of 1.01. TSM earns a higher WallStSmart Score of 84/100 (A-).
ONTO
Hold46
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 ONTO.
Margin of Safety
+56.3%
Fair Value
$897.55
Current Price
$374.67
$522.88 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 60.3%
Revenue surging 36.0% year-over-year
Earnings expanding 77.4% YoY
Areas to Watch
ROE of 5.0% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Earnings declined 48.5%
Moderate valuation
Trading at 85.2x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ONTO
The strongest argument for ONTO centers on Altman Z-Score. PEG of 1.30 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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.
Bear Case : ONTO
The primary concerns for ONTO are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 130.2x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
ONTO profiles as a value stock while TSM is a growth play — different risk/reward profiles.
ONTO carries more volatility with a beta of 1.54 — expect wider price swings.
TSM is growing revenue faster at 36.0% — sustainability is the question.
TSM generates stronger free cash flow (287.4B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (84/100 vs 46/100), backed by strong 49.9% margins and 36.0% 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.
Onto Innovation Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Onto Innovation Inc. is dedicated to the design, development, manufacture and support of process control tools that perform macrodefect inspection and metrology, lithography systems, and process control analytical software worldwide. The company is headquartered in Wilmington, Massachusetts.
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.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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