WallStSmart

Pagaya Technologies Ltd. (PGY)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 333944% more annual revenue ($4.44T vs $1.33B). TSM leads profitability with a 49.9% profit margin vs 7.4%. PGY appears more attractively valued with a PEG of 0.05. TSM earns a higher WallStSmart Score of 84/100 (A-).

PGY

Strong Buy

70

out of 100

Grade: B

Growth: 8.7Profit: 7.5Value: 7.3Quality: 6.5
Piotroski: 5/9Altman Z: 1.51

TSM

Exceptional Buy

84

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

PGYFair Value (-0.3%)

Margin of Safety

-0.3%

Fair Value

$12.83

Current Price

$17.64

$4.81 premium

UndervaluedFair: $12.83Overvalued
TSMUndervalued (+56.3%)

Margin of Safety

+56.3%

Fair Value

$897.55

Current Price

$374.67

$522.88 discount

UndervaluedFair: $897.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PGY5 strengths · Avg: 8.8/10
PEG RatioValuation
0.0510/10

Growing faster than its price suggests

EPS GrowthGrowth
183.8%10/10

Earnings expanding 183.8% YoY

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.2%8/10

Strong operational efficiency at 25.2%

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.07T10/10

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

PGY4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.514/10

Distress zone — elevated risk

Market CapQuality
$1.45B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.4%3/10

7.4% margin — thin

Debt/EquityHealth
1.753/10

Elevated debt levels

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
29.8x4/10

Moderate valuation

Price/BookValuation
85.2x2/10

Trading at 85.2x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : PGY

The strongest argument for PGY centers on PEG Ratio, EPS Growth, P/E Ratio. PEG of 0.05 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 : PGY

The primary concerns for PGY are Altman Z-Score, Market Cap, Profit Margin. Debt-to-equity of 1.75 is elevated, increasing financial risk.

Bear Case : TSM

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

Key Dynamics to Monitor

PGY profiles as a value stock while TSM is a growth play — different risk/reward profiles.

PGY carries more volatility with a beta of 5.34 — 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 70/100), backed by strong 49.9% margins and 36.0% revenue growth. 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.

Pagaya Technologies Ltd.

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Pagaya Technologies Ltd. is a financial technology company in Israel, the United States and the Cayman Islands. The company is headquartered in Tel Aviv, Israel.

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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