Penguin Solutions, Inc. (PENG)vsTaiwan Semiconductor Manufacturing (TSM)
PENG
Penguin Solutions, Inc.
$44.23
+13.47%
TECHNOLOGY · Cap: $2.05B
TSM
Taiwan Semiconductor Manufacturing
$411.68
-0.60%
TECHNOLOGY · Cap: $2.18T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 304289% more annual revenue ($4.10T vs $1.35B). TSM leads profitability with a 46.5% profit margin vs 4.1%. TSM trades at a lower P/E of 36.0x. TSM earns a higher WallStSmart Score of 84/100 (A-).
PENG
Hold45
out of 100
Grade: D
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+84.6%
Fair Value
$123.01
Current Price
$44.23
$78.78 discount
Margin of Safety
+72.3%
Fair Value
$1394.10
Current Price
$411.68
$982.42 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 544.0% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 58.1%
Revenue surging 35.1% year-over-year
Earnings expanding 58.4% YoY
Areas to Watch
4.1% margin — thin
Premium valuation, high expectations priced in
Revenue declined 6.2%
Premium valuation, high expectations priced in
Trading at 62.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : PENG
The strongest argument for PENG centers on EPS Growth.
Bull Case : TSM
The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.
Bear Case : PENG
The primary concerns for PENG are Profit Margin, P/E Ratio, Revenue Growth. A P/E of 55.7x leaves little room for execution misses. Thin 4.1% margins leave little buffer for downturns.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
PENG profiles as a value stock while TSM is a growth play — different risk/reward profiles.
PENG carries more volatility with a beta of 2.65 — expect wider price swings.
TSM is growing revenue faster at 35.1% — sustainability is the question.
TSM generates stronger free cash flow (377.1B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (84/100 vs 45/100), backed by strong 46.5% margins and 35.1% revenue growth. PENG offers better value entry with a 84.6% 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.
Penguin Solutions, Inc.
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Penguin Solutions, Inc., a memory-focused company, engages in the designing and development of enterprise solutions in the United States, China, Europe, and internationally. The company is headquartered in Grand Cayman, Cayman Islands.
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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