Synopsys Inc (SNPS)vsTaiwan Semiconductor Manufacturing (TSM)
SNPS
Synopsys Inc
$378.47
+2.93%
TECHNOLOGY · Cap: $76.15B
TSM
Taiwan Semiconductor Manufacturing
$413.75
+1.23%
TECHNOLOGY · Cap: $2.22T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 47057% more annual revenue ($4.44T vs $9.42B). TSM leads profitability with a 49.9% profit margin vs 11.4%. TSM appears more attractively valued with a PEG of 0.79. TSM earns a higher WallStSmart Score of 86/100 (A).
SNPS
Buy59
out of 100
Grade: C
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-88.0%
Fair Value
$211.39
Current Price
$378.47
$167.08 premium
Margin of Safety
+50.6%
Fair Value
$889.36
Current Price
$413.75
$475.61 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 42.4% year-over-year
Earnings expanding 89.3% YoY
Large-cap with strong market position
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 60.3%
Revenue surging 36.0% year-over-year
Earnings expanding 77.4% YoY
Areas to Watch
Expensive relative to growth rate
ROE of 3.5% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 84.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SNPS
The strongest argument for SNPS centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 42.4% 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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.
Bear Case : SNPS
The primary concerns for SNPS are PEG Ratio, Return on Equity, Piotroski F-Score. A P/E of 69.5x leaves little room for execution misses.
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.
SNPS is growing revenue faster at 42.4% — sustainability is the question.
TSM generates stronger free cash flow (287.4B), providing more financial flexibility.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 59/100), backed by strong 49.9% margins and 36.0% revenue growth. 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.
Synopsys Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.
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 SOFTWARE - INFRASTRUCTURE Stocks
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