WallStSmart

Parsons Corp (PSN)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 65030% more annual revenue ($4.10T vs $6.30B). TSM leads profitability with a 46.5% profit margin vs 3.6%. PSN trades at a lower P/E of 27.1x. TSM earns a higher WallStSmart Score of 84/100 (A-).

PSN

Hold

42

out of 100

Grade: D

Growth: 4.0Profit: 5.5Value: 4.3Quality: 6.5
Piotroski: 4/9Altman Z: 2.30

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSNSignificantly Overvalued (-27.8%)

Margin of Safety

-27.8%

Fair Value

$47.13

Current Price

$58.72

$11.59 premium

UndervaluedFair: $47.13Overvalued
TSMUndervalued (+44.8%)

Margin of Safety

+44.8%

Fair Value

$836.94

Current Price

$415.17

$421.77 discount

UndervaluedFair: $836.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PSN1 strengths · Avg: 8.0/10
Price/BookValuation
2.4x8/10

Reasonable price relative to book value

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.18T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
32.8%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
46.5%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
58.1%10/10

Strong operational efficiency at 58.1%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

EPS GrowthGrowth
58.4%10/10

Earnings expanding 58.4% YoY

Areas to Watch

PSN4 concerns · Avg: 2.8/10
P/E RatioValuation
27.1x4/10

Moderate valuation

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Revenue GrowthGrowth
-4.1%2/10

Revenue declined 4.1%

EPS GrowthGrowth
-17.9%2/10

Earnings declined 17.9%

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
36.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
63.5x2/10

Trading at 63.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : PSN

The strongest argument for PSN centers on Price/Book.

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 : PSN

The primary concerns for PSN are P/E Ratio, Profit Margin, Revenue Growth. Thin 3.6% margins leave little buffer for downturns.

Bear Case : TSM

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

Key Dynamics to Monitor

PSN 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 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 42/100), backed by strong 46.5% margins and 35.1% revenue growth. 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.

Parsons Corp

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Parsons Corporation provides technology-based solutions in defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company is headquartered in Centreville, Virginia.

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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