WallStSmart

Radware Ltd (RDWR)vsTaiwan Semiconductor Manufacturing (TSM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 1555789% more annual revenue ($4.94T vs $317.81M). TSM leads profitability with a 51.1% profit margin vs 5.3%. TSM appears more attractively valued with a PEG of 0.77. TSM earns a higher WallStSmart Score of 86/100 (A).

RDWR

Hold

38

out of 100

Grade: F

Growth: 4.0Profit: 4.0Value: 4.0Quality: 7.0
Piotroski: 4/9Altman Z: 1.95

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

RDWRUndervalued (+19.5%)

Margin of Safety

+19.5%

Fair Value

$34.42

Current Price

$36.64

$2.22 discount

UndervaluedFair: $34.42Overvalued
TSMUndervalued (+55.1%)

Margin of Safety

+55.1%

Fair Value

$979.05

Current Price

$439.51

$539.54 discount

UndervaluedFair: $979.05Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RDWR1 strengths · Avg: 10.0/10
Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

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

RDWR4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.954/10

Grey zone — moderate risk

Market CapQuality
$1.25B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
28.3x4/10

Moderate valuation

Price/BookValuation
83.9x2/10

Trading at 83.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : RDWR

The strongest argument for RDWR centers on Debt/Equity. Revenue growth of 10.9% 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 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.

Bear Case : RDWR

The primary concerns for RDWR are Altman Z-Score, Market Cap, Return on Equity. A P/E of 62.0x leaves little room for execution misses.

Bear Case : TSM

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

Key Dynamics to Monitor

RDWR 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 38/100), backed by strong 51.1% margins and 50.9% revenue growth. RDWR offers better value entry with a 19.5% margin of safety. 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.

Radware Ltd

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Radware Ltd. develops, manufactures and markets cybersecurity and application delivery solutions for applications in physical, virtual, cloud and software-defined data centers globally. The company is headquartered in Tel Aviv, Israel.

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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