WallStSmart

Sensata Technologies Holding NV (ST)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 109983% more annual revenue ($4.10T vs $3.73B). TSM leads profitability with a 46.5% profit margin vs 1.3%. ST appears more attractively valued with a PEG of 0.25. TSM earns a higher WallStSmart Score of 84/100 (A-).

ST

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 5.5Value: 7.3Quality: 6.8
Piotroski: 3/9

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

STUndervalued (+41.6%)

Margin of Safety

+41.6%

Fair Value

$63.72

Current Price

$45.75

$17.97 discount

UndervaluedFair: $63.72Overvalued
TSMUndervalued (+72.4%)

Margin of Safety

+72.4%

Fair Value

$1396.69

Current Price

$397.67

$999.02 discount

UndervaluedFair: $1396.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ST4 strengths · Avg: 9.0/10
PEG RatioValuation
0.2510/10

Growing faster than its price suggests

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

EPS GrowthGrowth
25.5%8/10

Earnings expanding 25.5% YoY

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.04T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.2%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
46.5%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
58.1%10/10

Strong operational efficiency at 58.1%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

EPS GrowthGrowth
58.4%10/10

Earnings expanding 58.4% YoY

Areas to Watch

ST4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.6%4/10

2.6% revenue growth

Return on EquityProfitability
1.7%3/10

ROE of 1.7% — below average capital efficiency

Profit MarginProfitability
1.3%3/10

1.3% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
33.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
60.8x2/10

Trading at 60.8x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ST

The strongest argument for ST centers on PEG Ratio, Debt/Equity, Price/Book. PEG of 0.25 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 : ST

The primary concerns for ST are Revenue Growth, Return on Equity, Profit Margin. A P/E of 127.8x leaves little room for execution misses. Thin 1.3% margins leave little buffer for downturns.

Bear Case : TSM

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

Key Dynamics to Monitor

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

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.

Bottom Line

TSM scores higher overall (84/100 vs 59/100), backed by strong 46.5% margins and 35.1% revenue growth. ST offers better value entry with a 41.6% 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.

Sensata Technologies Holding NV

TECHNOLOGY · SCIENTIFIC & TECHNICAL INSTRUMENTS · USA

Sensata Technologies Holding plc, develops, manufactures and sells sensors, sensor-based solutions, controls and other products in America, Europe, Asia and internationally. The company is headquartered in Attleboro, Massachusetts.

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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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