Paylocity Holding Corporation (PCTY)vsTaiwan Semiconductor Manufacturing (TSM)
PCTY
Paylocity Holding Corporation
$141.66
-0.84%
TECHNOLOGY · Cap: $7.95B
TSM
Taiwan Semiconductor Manufacturing
$433.24
+1.22%
TECHNOLOGY · Cap: $2.22T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 250587% more annual revenue ($4.44T vs $1.77B). TSM leads profitability with a 49.9% profit margin vs 15.2%. TSM appears more attractively valued with a PEG of 0.79. TSM earns a higher WallStSmart Score of 86/100 (A).
PCTY
Strong Buy65
out of 100
Grade: B-
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+62.0%
Fair Value
$283.03
Current Price
$141.66
$141.37 discount
Margin of Safety
+50.6%
Fair Value
$889.36
Current Price
$433.24
$456.12 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 22 in profit
Conservative balance sheet, low leverage
Earnings expanding 27.6% YoY
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
Moderate valuation
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 88.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : PCTY
The strongest argument for PCTY centers on Return on Equity, Debt/Equity, EPS Growth. Profitability is solid with margins at 15.2% and operating margin at 19.1%. Revenue growth of 11.0% 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 : PCTY
The primary concerns for PCTY are P/E Ratio, Altman Z-Score.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
PCTY profiles as a mature stock while TSM is a growth play — different risk/reward profiles.
TSM carries more volatility with a beta of 1.25 — 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 (86/100 vs 65/100), backed by strong 49.9% margins and 36.0% revenue growth. PCTY offers better value entry with a 62.0% margin of safety. Both earn "Exceptional Buy" and "Strong 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.
Paylocity Holding Corporation
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for midsize organizations in the United States. The company is headquartered in Schaumburg, Illinois.
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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