STMicroelectronics NV ADR (STM)vsTaiwan Semiconductor Manufacturing (TSM)
STM
STMicroelectronics NV ADR
$64.38
+1.56%
TECHNOLOGY · Cap: $57.65B
TSM
Taiwan Semiconductor Manufacturing
$417.72
+4.48%
TECHNOLOGY · Cap: $2.14T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 33055% more annual revenue ($4.10T vs $12.38B). TSM leads profitability with a 46.5% profit margin vs 1.2%. STM appears more attractively valued with a PEG of 0.61. TSM earns a higher WallStSmart Score of 84/100 (A-).
STM
Hold43
out of 100
Grade: D
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-30.0%
Fair Value
$26.89
Current Price
$64.38
$37.49 premium
Margin of Safety
+72.3%
Fair Value
$1391.51
Current Price
$417.72
$973.79 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Growing faster than its price suggests
Revenue surging 23.0% year-over-year
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
ROE of 0.9% — below average capital efficiency
1.2% margin — thin
Operating margin of 3.6%
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 63.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : STM
The strongest argument for STM centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 23.0% demonstrates continued momentum. PEG of 0.61 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 : STM
The primary concerns for STM are Return on Equity, Profit Margin, Operating Margin. A P/E of 405.4x leaves little room for execution misses. Thin 1.2% margins leave little buffer for downturns.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
STM carries more volatility with a beta of 1.51 — 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 SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (84/100 vs 43/100), backed by strong 46.5% margins and 35.1% 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.
STMicroelectronics NV ADR
TECHNOLOGY · SEMICONDUCTORS · USA
STMicroelectronics NV designs, develops, manufactures and markets semiconductor products in Europe, the Middle East, Africa, the Americas and Asia Pacific. The company is headquartered in Geneva, Switzerland.
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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