ScanSource Inc (SCSC)vsTaiwan Semiconductor Manufacturing (TSM)
SCSC
ScanSource Inc
$41.12
+2.03%
TECHNOLOGY · Cap: $892.62M
TSM
Taiwan Semiconductor Manufacturing
$396.06
+0.57%
TECHNOLOGY · Cap: $2.04T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 135616% more annual revenue ($4.10T vs $3.02B). TSM leads profitability with a 46.5% profit margin vs 2.4%. SCSC appears more attractively valued with a PEG of 0.61. TSM earns a higher WallStSmart Score of 84/100 (A-).
SCSC
Buy58
out of 100
Grade: C
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.5%
Fair Value
$130.62
Current Price
$41.12
$89.50 discount
Margin of Safety
+72.4%
Fair Value
$1399.41
Current Price
$396.06
$1003.35 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 36 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
2.5% revenue growth
Smaller company, higher risk/reward
2.4% margin — thin
Operating margin of 2.6%
Premium valuation, high expectations priced in
Trading at 60.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SCSC
The strongest argument for SCSC centers on Price/Book, Altman Z-Score, Debt/Equity. PEG of 0.61 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.
Bear Case : SCSC
The primary concerns for SCSC are Revenue Growth, Market Cap, 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
SCSC profiles as a value stock while TSM is a growth play — different risk/reward profiles.
SCSC 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 58/100), backed by strong 46.5% margins and 35.1% revenue growth. SCSC offers better value entry with a 73.5% margin of safety. Both earn "Exceptional Buy" and "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.
ScanSource Inc
TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA
ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. The company is headquartered in Greenville, South Carolina.
Visit Website →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 →Compare with Other ELECTRONICS & COMPUTER DISTRIBUTION Stocks
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