Silicom (SILC)vsTaiwan Semiconductor Manufacturing (TSM)
SILC
Silicom
$38.75
+37.75%
TECHNOLOGY · Cap: $157.15M
TSM
Taiwan Semiconductor Manufacturing
$396.06
+0.57%
TECHNOLOGY · Cap: $2.04T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 6627009% more annual revenue ($4.10T vs $61.93M). TSM leads profitability with a 46.5% profit margin vs -18.5%. TSM appears more attractively valued with a PEG of 1.22. TSM earns a higher WallStSmart Score of 84/100 (A-).
SILC
Hold37
out of 100
Grade: F
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+42.3%
Fair Value
$33.16
Current Price
$38.75
$5.59 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
16.7% revenue growth
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
Smaller company, higher risk/reward
ROE of -9.4% — below average capital efficiency
Earnings declined 79.6%
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Trading at 60.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SILC
The strongest argument for SILC centers on Price/Book, Revenue Growth. Revenue growth of 16.7% demonstrates continued momentum. PEG of 1.41 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 : SILC
The primary concerns for SILC are Market Cap, Return on Equity, EPS Growth.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
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.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (84/100 vs 37/100), backed by strong 46.5% margins and 35.1% revenue growth. SILC offers better value entry with a 42.3% 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.
Silicom
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Silicom Ltd. designs, manufactures, markets and supports network and data infrastructure solutions for a variety of servers, server-based systems, and communications devices in North America, Europe, and Asia Pacific. The company is headquartered in Kfar Sava, Israel.
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 COMMUNICATION EQUIPMENT Stocks
Want to dig deeper into these stocks?