WallStSmart

Qnity Electronics, Inc (Q)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 89589% more annual revenue ($4.44T vs $4.95B). TSM leads profitability with a 49.9% profit margin vs 13.1%. TSM appears more attractively valued with a PEG of 0.91. TSM earns a higher WallStSmart Score of 86/100 (A).

Q

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 4.3Quality: 5.5
Piotroski: 2/9Altman Z: 1.35

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

Intrinsic value data unavailable for Q.

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

Q2 strengths · Avg: 8.0/10
Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

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

Q4 concerns · Avg: 2.8/10
PEG RatioValuation
2.174/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
42.9x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-21.7%2/10

Earnings declined 21.7%

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 : Q

The strongest argument for Q centers on Operating Margin, Revenue Growth. Revenue growth of 17.6% demonstrates continued momentum.

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 : Q

The primary concerns for Q are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 42.9x leaves little room for execution misses.

Bear Case : TSM

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

Key Dynamics to Monitor

TSM is growing revenue faster at 36.0% — sustainability is the question.

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

Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (86/100 vs 51/100), backed by strong 49.9% margins and 36.0% revenue growth. 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.

Qnity Electronics, Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

IQVIA Holdings Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and Asia-Pacific. The company is headquartered in Durham, North Carolina.

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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