WallStSmart

Progress Software Corporation (PRGS)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 442301% more annual revenue ($4.44T vs $1.00B). TSM leads profitability with a 49.9% profit margin vs 8.9%. TSM appears more attractively valued with a PEG of 1.01. TSM earns a higher WallStSmart Score of 84/100 (A-).

PRGS

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 7.0Value: 6.7Quality: 3.0
Piotroski: 5/9Altman Z: 0.62

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

PRGSUndervalued (+25.6%)

Margin of Safety

+25.6%

Fair Value

$55.05

Current Price

$42.71

$12.34 discount

UndervaluedFair: $55.05Overvalued
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

PRGS1 strengths · Avg: 8.0/10
EPS GrowthGrowth
28.2%8/10

Earnings expanding 28.2% YoY

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

PRGS3 concerns · Avg: 2.0/10
Market CapQuality
$1.66B3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
0.622/10

Distress zone — elevated risk

Debt/EquityHealth
2.621/10

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 : PRGS

The strongest argument for PRGS centers on EPS Growth. PEG of 1.36 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 : PRGS

The primary concerns for PRGS are Market Cap, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.62 is elevated, increasing financial risk.

Bear Case : TSM

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

Key Dynamics to Monitor

PRGS profiles as a value 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 (84/100 vs 63/100), backed by strong 49.9% margins and 36.0% revenue growth. PRGS offers better value entry with a 25.6% margin of safety. Both earn "Exceptional Buy" and "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.

Progress Software Corporation

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Progress Software Corporation develops business applications. The company is headquartered in Bedford, Massachusetts.

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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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