Skywater Technology Inc (SKYT)vsTaiwan Semiconductor Manufacturing (TSM)
SKYT
Skywater Technology Inc
$28.83
-1.27%
TECHNOLOGY · Cap: $1.42B
TSM
Taiwan Semiconductor Manufacturing
$347.75
+1.31%
TECHNOLOGY · Cap: $1.71T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 861406% more annual revenue ($3.81T vs $442.14M). TSM leads profitability with a 45.1% profit margin vs 26.9%. SKYT trades at a lower P/E of 12.0x. TSM earns a higher WallStSmart Score of 82/100 (A-).
SKYT
Buy60
out of 100
Grade: C
TSM
Exceptional Buy82
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+75.1%
Fair Value
$114.19
Current Price
$28.83
$85.36 discount
Margin of Safety
+20.3%
Fair Value
$483.91
Current Price
$347.75
$136.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 96 in profit
Revenue surging 126.6% year-over-year
Earnings expanding 97.3% YoY
Keeps 27 of every $100 in revenue as profit
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 45 of every $100 in revenue as profit
Strong operational efficiency at 53.9%
Generating 388.2B in free cash flow
Safe zone — low bankruptcy risk
Areas to Watch
Smaller company, higher risk/reward
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 52.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SKYT
The strongest argument for SKYT centers on P/E Ratio, Return on Equity, Revenue Growth. Profitability is solid with margins at 26.9% and operating margin at -1.8%. Revenue growth of 126.6% demonstrates continued momentum.
Bull Case : TSM
The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.
Bear Case : SKYT
The primary concerns for SKYT are Market Cap, Debt/Equity, Free Cash Flow.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
SKYT carries more volatility with a beta of 3.52 — expect wider price swings.
SKYT is growing revenue faster at 126.6% — sustainability is the question.
TSM generates stronger free cash flow (388.2B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (82/100 vs 60/100), backed by strong 45.1% margins and 20.5% revenue growth. SKYT offers better value entry with a 75.1% 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.
Skywater Technology Inc
TECHNOLOGY · SEMICONDUCTORS · USA
SkyWater Technology, Inc. manufactures integrated circuits. The company is headquartered in Bloomington, Minnesota.
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 SEMICONDUCTORS Stocks
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