StoneCo Ltd (STNE)vsTaiwan Semiconductor Manufacturing (TSM)
STNE
StoneCo Ltd
$7.49
-2.60%
TECHNOLOGY · Cap: $1.79B
TSM
Taiwan Semiconductor Manufacturing
$353.10
+6.33%
TECHNOLOGY · Cap: $2.27T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 36295% more annual revenue ($4.94T vs $13.59B). TSM leads profitability with a 51.1% profit margin vs 24.7%. STNE trades at a lower P/E of 3.0x. TSM earns a higher WallStSmart Score of 86/100 (A).
STNE
Strong Buy66
out of 100
Grade: B-
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+79.2%
Fair Value
$85.05
Current Price
$7.49
$77.56 discount
Margin of Safety
+55.1%
Fair Value
$979.05
Current Price
$353.10
$625.95 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 39.6%
Every $100 of equity generates 28 in profit
Keeps 25 of every $100 in revenue as profit
Generating 1.7B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Keeps 51 of every $100 in revenue as profit
Strong operational efficiency at 58.7%
Revenue surging 50.9% year-over-year
Earnings expanding 68.7% YoY
Areas to Watch
1.6% revenue growth
Smaller company, higher risk/reward
Elevated debt levels
Earnings declined 16.6%
Moderate valuation
Trading at 67.4x 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 24.7% and operating margin at 39.6%.
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 : STNE
The primary concerns for STNE are Revenue Growth, Market Cap, Debt/Equity. Debt-to-equity of 1.81 is elevated, increasing financial risk.
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 1.54 — 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 66/100), backed by strong 51.1% margins and 50.9% revenue growth. STNE offers better value entry with a 79.2% 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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