WallStSmart

Science Applications International Corporation Common Stock (SAIC)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 56412% more annual revenue ($4.10T vs $7.26B). TSM leads profitability with a 46.5% profit margin vs 4.9%. TSM appears more attractively valued with a PEG of 1.22. TSM earns a higher WallStSmart Score of 84/100 (A-).

SAIC

Hold

48

out of 100

Grade: D+

Growth: 2.0Profit: 6.0Value: 6.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.33

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

SAICUndervalued (+73.5%)

Margin of Safety

+73.5%

Fair Value

$310.40

Current Price

$95.13

$215.27 discount

UndervaluedFair: $310.40Overvalued
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

SAIC4 strengths · Avg: 8.5/10
Return on EquityProfitability
23.3%9/10

Every $100 of equity generates 23 in profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

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

SAIC4 concerns · Avg: 2.3/10
Profit MarginProfitability
4.9%3/10

4.9% margin — thin

PEG RatioValuation
3.672/10

Expensive relative to growth rate

Revenue GrowthGrowth
-4.8%2/10

Revenue declined 4.8%

EPS GrowthGrowth
-6.2%2/10

Earnings declined 6.2%

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 : SAIC

The strongest argument for SAIC centers on Return on Equity, Debt/Equity, P/E Ratio.

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 : SAIC

The primary concerns for SAIC are Profit Margin, PEG Ratio, Revenue Growth. Thin 4.9% margins leave little buffer for downturns.

Bear Case : TSM

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

Key Dynamics to Monitor

SAIC 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. SAIC offers better value entry with a 73.5% 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.

Science Applications International Corporation Common Stock

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Science Applications International Corporation provides technical, engineering and business information technology (IT) services primarily in the United States. The company is headquartered in Reston, Virginia.

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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