WallStSmart

Qualys Inc (QLYS)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 613224% more annual revenue ($4.10T vs $669.13M). TSM leads profitability with a 46.5% profit margin vs 29.6%. TSM appears more attractively valued with a PEG of 1.22. TSM earns a higher WallStSmart Score of 84/100 (A-).

QLYS

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 9.5Value: 4.0Quality: 5.3
Piotroski: 3/9Altman Z: 2.02

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

QLYSSignificantly Overvalued (-25.6%)

Margin of Safety

-25.6%

Fair Value

$87.79

Current Price

$89.60

$1.81 premium

UndervaluedFair: $87.79Overvalued
TSMUndervalued (+72.4%)

Margin of Safety

+72.4%

Fair Value

$1399.41

Current Price

$396.06

$1003.35 discount

UndervaluedFair: $1399.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

QLYS5 strengths · Avg: 9.0/10
Return on EquityProfitability
38.2%10/10

Every $100 of equity generates 38 in profit

Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Profit MarginProfitability
29.6%9/10

Keeps 30 of every $100 in revenue as profit

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
23.6%8/10

Earnings expanding 23.6% YoY

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.04T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.2%10/10

Every $100 of equity generates 36 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

QLYS2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.922/10

Expensive relative to growth rate

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
33.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
60.6x2/10

Trading at 60.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : QLYS

The strongest argument for QLYS centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 29.6% and operating margin at 33.6%. Revenue growth of 10.1% 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.

Bear Case : QLYS

The primary concerns for QLYS are Piotroski F-Score, PEG Ratio.

Bear Case : TSM

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

Key Dynamics to Monitor

QLYS profiles as a mature 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 66/100), backed by strong 46.5% margins and 35.1% revenue growth. Both earn "Exceptional Buy" and "Strong 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.

Qualys Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Qualys, Inc. provides cloud-based information technology (IT), security, and compliance solutions in the United States and internationally. The company is headquartered in Foster City, California.

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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