Rackspace Technology Inc (RXT)vsTaiwan Semiconductor Manufacturing (TSM)
RXT
Rackspace Technology Inc
$5.59
+7.29%
TECHNOLOGY · Cap: $1.32B
TSM
Taiwan Semiconductor Manufacturing
$415.17
+0.68%
TECHNOLOGY · Cap: $2.18T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 151987% more annual revenue ($4.10T vs $2.70B). TSM leads profitability with a 46.5% profit margin vs -5.4%. TSM appears more attractively valued with a PEG of 1.31. TSM earns a higher WallStSmart Score of 84/100 (A-).
RXT
Hold41
out of 100
Grade: D
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for RXT.
Margin of Safety
+49.5%
Fair Value
$839.44
Current Price
$415.17
$424.27 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 33 in profit
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 58.1%
Revenue surging 35.1% year-over-year
Earnings expanding 58.4% YoY
Areas to Watch
1.9% revenue growth
0.0% earnings growth
Smaller company, higher risk/reward
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 63.5x 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% 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 3.05 — 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 41/100), backed by strong 46.5% margins and 35.1% 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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