WallStSmart

Sanmina Corporation (SANM)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 34691% more annual revenue ($4.44T vs $12.76B). TSM leads profitability with a 49.9% profit margin vs 2.4%. SANM appears more attractively valued with a PEG of 0.67. TSM earns a higher WallStSmart Score of 86/100 (A).

SANM

Strong Buy

71

out of 100

Grade: B

Growth: 8.0Profit: 5.5Value: 5.7Quality: 6.0
Piotroski: 4/9Altman Z: 1.87

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for SANM.

TSMUndervalued (+50.6%)

Margin of Safety

+50.6%

Fair Value

$889.36

Current Price

$433.24

$456.12 discount

UndervaluedFair: $889.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SANM3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
69.7%10/10

Revenue surging 69.7% year-over-year

EPS GrowthGrowth
68.3%10/10

Earnings expanding 68.3% YoY

PEG RatioValuation
0.678/10

Growing faster than its price suggests

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.22T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
49.9%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Revenue GrowthGrowth
36.0%10/10

Revenue surging 36.0% year-over-year

EPS GrowthGrowth
77.4%10/10

Earnings expanding 77.4% YoY

Areas to Watch

SANM3 concerns · Avg: 3.7/10
P/E RatioValuation
35.4x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.874/10

Grey zone — moderate risk

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
88.6x2/10

Trading at 88.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : SANM

The strongest argument for SANM centers on Revenue Growth, EPS Growth, PEG Ratio. Revenue growth of 69.7% demonstrates continued momentum. PEG of 0.67 suggests the stock is reasonably priced for its growth.

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bear Case : SANM

The primary concerns for SANM are P/E Ratio, Altman Z-Score, Profit Margin. Thin 2.4% margins leave little buffer for downturns.

Bear Case : TSM

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

Key Dynamics to Monitor

SANM profiles as a hypergrowth stock while TSM is a growth play — different risk/reward profiles.

SANM carries more volatility with a beta of 1.60 — expect wider price swings.

SANM is growing revenue faster at 69.7% — sustainability is the question.

TSM generates stronger free cash flow (287.4B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (86/100 vs 71/100), backed by strong 49.9% margins and 36.0% revenue growth. Both earn "Exceptional Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Sanmina Corporation

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Sanmina Corporation offers integrated solutions for manufacturing, components, products and repair, logistics and after-sales services globally. The company is headquartered in San Jose, California.

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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