WallStSmart

Parsons Corp (PSN)vsTaiwan Semiconductor Manufacturing (TSM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 78481% more annual revenue ($4.94T vs $6.29B). TSM leads profitability with a 51.1% profit margin vs 2.5%. TSM trades at a lower P/E of 28.3x. TSM earns a higher WallStSmart Score of 86/100 (A).

PSN

Hold

39

out of 100

Grade: F

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: 8.0Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSNSignificantly Overvalued (-30.9%)

Margin of Safety

-30.9%

Fair Value

$46.01

Current Price

$48.90

$2.89 premium

UndervaluedFair: $46.01Overvalued
TSMUndervalued (+61.5%)

Margin of Safety

+61.5%

Fair Value

$976.07

Current Price

$375.44

$600.63 discount

UndervaluedFair: $976.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PSN1 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.27T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.5%10/10

Every $100 of equity generates 37 in profit

Profit MarginProfitability
51.1%10/10

Keeps 51 of every $100 in revenue as profit

Operating MarginProfitability
58.7%10/10

Strong operational efficiency at 58.7%

Revenue GrowthGrowth
50.9%10/10

Revenue surging 50.9% year-over-year

EPS GrowthGrowth
68.7%10/10

Earnings expanding 68.7% YoY

Areas to Watch

PSN4 concerns · Avg: 3.0/10
P/E RatioValuation
35.1x4/10

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
28.3x4/10

Moderate valuation

Price/BookValuation
71.6x2/10

Trading at 71.6x 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 51.1% and operating margin at 58.7%. Revenue growth of 50.9% 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 1.24 — expect wider price swings.

TSM is growing revenue faster at 50.9% — sustainability is the question.

TSM generates stronger free cash flow (510.1B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (86/100 vs 39/100), backed by strong 51.1% margins and 50.9% 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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