Pegasystems Inc (PEGA)vsTaiwan Semiconductor Manufacturing (TSM)
PEGA
Pegasystems Inc
$35.37
+0.14%
TECHNOLOGY · Cap: $5.58B
TSM
Taiwan Semiconductor Manufacturing
$439.51
-1.75%
TECHNOLOGY · Cap: $2.27T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 284681% more annual revenue ($4.94T vs $1.74B). TSM leads profitability with a 51.1% profit margin vs 18.7%. TSM appears more attractively valued with a PEG of 0.77. TSM earns a higher WallStSmart Score of 86/100 (A).
PEGA
Hold48
out of 100
Grade: D+
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.7%
Fair Value
$96.57
Current Price
$35.37
$61.20 discount
Margin of Safety
+55.1%
Fair Value
$979.05
Current Price
$439.51
$539.54 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 48 in profit
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Keeps 51 of every $100 in revenue as profit
Strong operational efficiency at 58.7%
Revenue surging 50.9% year-over-year
Earnings expanding 68.7% YoY
Areas to Watch
Trading at 10.4x book value
Operating margin of 4.6%
Expensive relative to growth rate
Earnings declined 52.9%
Moderate valuation
Trading at 83.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : PEGA
The strongest argument for PEGA centers on Return on Equity, Debt/Equity. Profitability is solid with margins at 18.7% and operating margin at 4.6%.
Bull Case : TSM
The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, Operating Margin, PEG Ratio.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
PEGA profiles as a mature stock while TSM is a growth play — different risk/reward profiles.
TSM carries more volatility with a beta of 1.24 — expect wider price swings.
TSM is growing revenue faster at 50.9% — sustainability is the question.
TSM generates stronger free cash flow (510.1B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (86/100 vs 48/100), backed by strong 51.1% margins and 50.9% revenue growth. PEGA offers better value entry with a 60.7% margin of safety. 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.
Pegasystems Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Pegasystems Inc. develops, markets, licenses, hosts and supports business software applications in the United States, the rest of the Americas, the United Kingdom, the rest of Europe, the Middle East, Africa, and Asia-Pacific. The company is headquartered in Cambridge, 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 SOFTWARE - APPLICATION Stocks
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