WallStSmart

Parsons Corp (PSN)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 70467% more annual revenue ($4.44T vs $6.29B). TSM leads profitability with a 49.9% profit margin vs 2.5%. PSN trades at a lower P/E of 30.5x. TSM earns a higher WallStSmart Score of 86/100 (A).

PSN

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 5.0Value: 3.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.30

TSM

Exceptional Buy

86

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

PSNSignificantly Overvalued (-28.4%)

Margin of Safety

-28.4%

Fair Value

$46.91

Current Price

$47.55

$0.64 premium

UndervaluedFair: $46.91Overvalued
TSMUndervalued (+55.0%)

Margin of Safety

+55.0%

Fair Value

$897.55

Current Price

$420.04

$477.51 discount

UndervaluedFair: $897.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PSN1 strengths · Avg: 8.0/10
Price/BookValuation
1.9x8/10

Reasonable price relative to book value

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.09T10/10

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

PSN4 concerns · Avg: 3.0/10
P/E RatioValuation
30.5x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
2.5%3/10

2.5% margin — thin

Operating MarginProfitability
2.2%3/10

Operating margin of 2.2%

Revenue GrowthGrowth
-0.5%2/10

Revenue declined 0.5%

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
87.5x2/10

Trading at 87.5x 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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bear Case : PSN

The primary concerns for PSN are P/E Ratio, Profit Margin, Operating Margin. Thin 2.5% 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 36.0% — sustainability is the question.

TSM generates stronger free cash flow (287.4B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (86/100 vs 41/100), backed by strong 49.9% margins and 36.0% 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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