Rackspace Technology Inc (RXT)vsTaiwan Semiconductor Manufacturing (TSM)
RXT
Rackspace Technology Inc
$2.89
+0.70%
TECHNOLOGY · Cap: $690.71M
TSM
Taiwan Semiconductor Manufacturing
$436.87
+0.60%
TECHNOLOGY · Cap: $2.27T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 182892% more annual revenue ($4.94T vs $2.70B). TSM leads profitability with a 51.1% profit margin vs -5.9%. TSM appears more attractively valued with a PEG of 0.77. TSM earns a higher WallStSmart Score of 86/100 (A).
RXT
Hold42
out of 100
Grade: D
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for RXT.
Margin of Safety
+55.1%
Fair Value
$979.05
Current Price
$436.87
$542.18 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Keeps 51 of every $100 in revenue as profit
Strong operational efficiency at 58.7%
Revenue surging 50.9% year-over-year
Earnings expanding 68.7% YoY
Areas to Watch
0.6% revenue growth
0.0% earnings growth
Smaller company, higher risk/reward
Expensive relative to growth rate
Moderate valuation
Trading at 83.4x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : RXT
The strongest argument for RXT centers on Debt/Equity.
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 : RXT
The primary concerns for RXT are Revenue Growth, EPS Growth, Market Cap.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
RXT profiles as a turnaround stock while TSM is a growth play — different risk/reward profiles.
RXT carries more volatility with a beta of 3.10 — 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 42/100), 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.
Rackspace Technology Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Rackspace Technology, Inc. is a global multi-cloud technology services company. The company is headquartered in San Antonio, Texas.
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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