WallStSmart

Radware Ltd (RDWR)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 1359484% more annual revenue ($4.10T vs $301.85M). TSM leads profitability with a 46.5% profit margin vs 6.7%. TSM appears more attractively valued with a PEG of 1.22. TSM earns a higher WallStSmart Score of 84/100 (A-).

RDWR

Hold

48

out of 100

Grade: D+

Growth: 6.7Profit: 4.0Value: 4.0Quality: 5.0

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

RDWRUndervalued (+27.8%)

Margin of Safety

+27.8%

Fair Value

$38.38

Current Price

$26.80

$11.58 discount

UndervaluedFair: $38.38Overvalued
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

RDWR1 strengths · Avg: 10.0/10
EPS GrowthGrowth
123.2%10/10

Earnings expanding 123.2% 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

RDWR4 concerns · Avg: 3.0/10
Market CapQuality
$1.11B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Operating MarginProfitability
4.1%3/10

Operating margin of 4.1%

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 : RDWR

The strongest argument for RDWR centers on EPS Growth.

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 : RDWR

The primary concerns for RDWR are Market Cap, Return on Equity, Profit Margin. A P/E of 58.8x 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 1.25 — 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 48/100), backed by strong 46.5% margins and 35.1% revenue growth. RDWR offers better value entry with a 27.8% 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.

Visit Website →

Want to dig deeper into these stocks?