StoneCo Ltd (STNE)vsTaiwan Semiconductor Manufacturing (TSM)
STNE
StoneCo Ltd
$10.74
-3.35%
TECHNOLOGY · Cap: $2.74B
TSM
Taiwan Semiconductor Manufacturing
$415.17
+0.94%
TECHNOLOGY · Cap: $2.18T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 30220% more annual revenue ($4.10T vs $13.54B). TSM leads profitability with a 46.5% profit margin vs 26.0%. STNE trades at a lower P/E of 4.2x. TSM earns a higher WallStSmart Score of 84/100 (A-).
STNE
Strong Buy77
out of 100
Grade: B+
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+79.4%
Fair Value
$85.94
Current Price
$10.74
$75.20 discount
Margin of Safety
+44.8%
Fair Value
$836.94
Current Price
$415.17
$421.77 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 44.3%
Earnings expanding 273.8% YoY
Every $100 of equity generates 28 in profit
Keeps 26 of every $100 in revenue as profit
Mega-cap, among the largest globally
Every $100 of equity generates 33 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
4.3% revenue growth
Elevated debt levels
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 63.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : STNE
The strongest argument for STNE centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 26.0% and operating margin at 44.3%.
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 : STNE
The primary concerns for STNE are Revenue Growth, Debt/Equity, Altman Z-Score.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
STNE profiles as a value stock while TSM is a growth play — different risk/reward profiles.
STNE carries more volatility with a beta of 1.59 — 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 77/100), backed by strong 46.5% margins and 35.1% revenue growth. STNE offers better value entry with a 79.4% margin of safety. Both earn "Exceptional Buy" and "Strong 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.
StoneCo Ltd
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
StoneCo Ltd. provides fintech solutions to merchants and integrated partners to conduct e-commerce through store, online and mobile channels in Brazil.
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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