WallStSmart

Sonos Inc (SONO)vsTaiwan Semiconductor Manufacturing (TSM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 331689% more annual revenue ($4.94T vs $1.49B). TSM leads profitability with a 51.1% profit margin vs 3.8%. TSM trades at a lower P/E of 28.3x. TSM earns a higher WallStSmart Score of 86/100 (A).

SONO

Hold

47

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 8.0Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SONOSignificantly Overvalued (-32.2%)

Margin of Safety

-32.2%

Fair Value

$12.48

Current Price

$16.41

$3.93 premium

UndervaluedFair: $12.48Overvalued
TSMUndervalued (+55.1%)

Margin of Safety

+55.1%

Fair Value

$979.05

Current Price

$353.10

$625.95 discount

UndervaluedFair: $979.05Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.27T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.5%10/10

Every $100 of equity generates 37 in profit

Profit MarginProfitability
51.1%10/10

Keeps 51 of every $100 in revenue as profit

Operating MarginProfitability
58.7%10/10

Strong operational efficiency at 58.7%

Revenue GrowthGrowth
50.9%10/10

Revenue surging 50.9% year-over-year

EPS GrowthGrowth
68.7%10/10

Earnings expanding 68.7% YoY

Areas to Watch

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Operating MarginProfitability
4.4%3/10

Operating margin of 4.4%

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
28.3x4/10

Moderate valuation

Price/BookValuation
67.4x2/10

Trading at 67.4x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity.

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.

Bear Case : SONO

The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% margins leave little buffer for downturns.

Bear Case : TSM

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

Key Dynamics to Monitor

SONO profiles as a value stock while TSM is a growth play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.88 — expect wider price swings.

TSM is growing revenue faster at 50.9% — sustainability is the question.

TSM generates stronger free cash flow (510.1B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (86/100 vs 47/100), backed by strong 51.1% margins and 50.9% revenue growth. 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.

Sonos Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, 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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