WallStSmart

Ouster, Inc. Common Stock (OUST)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 2166977% more annual revenue ($4.44T vs $204.91M). TSM leads profitability with a 49.9% profit margin vs -26.0%. TSM earns a higher WallStSmart Score of 86/100 (A).

OUST

Avoid

28

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 6.0Quality: 7.0
Piotroski: 5/9Altman Z: -1.51

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OUSTUndervalued (+24.3%)

Margin of Safety

+24.3%

Fair Value

$24.94

Current Price

$35.05

$10.11 discount

UndervaluedFair: $24.94Overvalued
TSMUndervalued (+51.5%)

Margin of Safety

+51.5%

Fair Value

$886.73

Current Price

$434.67

$452.06 discount

UndervaluedFair: $886.73Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OUST2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
55.9%10/10

Revenue surging 55.9% year-over-year

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.22T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
49.9%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Revenue GrowthGrowth
36.0%10/10

Revenue surging 36.0% year-over-year

EPS GrowthGrowth
77.4%10/10

Earnings expanding 77.4% YoY

Areas to Watch

OUST4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-20.3%2/10

ROE of -20.3% — below average capital efficiency

Free Cash FlowQuality
$-15.41M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-1.512/10

Distress zone — elevated risk

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
88.9x2/10

Trading at 88.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : OUST

The strongest argument for OUST centers on Revenue Growth, Debt/Equity. Revenue growth of 55.9% demonstrates continued momentum.

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 : OUST

The primary concerns for OUST are EPS Growth, Return on Equity, Free Cash Flow.

Bear Case : TSM

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

Key Dynamics to Monitor

OUST profiles as a hypergrowth stock while TSM is a growth play — different risk/reward profiles.

OUST carries more volatility with a beta of 3.25 — expect wider price swings.

OUST is growing revenue faster at 55.9% — sustainability is the question.

TSM generates stronger free cash flow (287.4B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (86/100 vs 28/100), backed by strong 49.9% margins and 36.0% revenue growth. OUST offers better value entry with a 24.3% margin of safety. Both earn "Exceptional Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Ouster, Inc. Common Stock

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Ouster, Inc. designs and manufactures digital lidar sensors for the industrial automation, intelligent infrastructure, robotics and automotive markets. The company is headquartered in San Francisco, California.

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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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