WallStSmart

Synaptics Incorporated (SYNA)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 350062% more annual revenue ($4.10T vs $1.17B). TSM leads profitability with a 46.5% profit margin vs -4.1%. SYNA appears more attractively valued with a PEG of 0.51. TSM earns a higher WallStSmart Score of 84/100 (A-).

SYNA

Hold

39

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 5.0Quality: 7.0
Piotroski: 4/9Altman Z: 1.89

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SYNASignificantly Overvalued (-30.5%)

Margin of Safety

-30.5%

Fair Value

$69.55

Current Price

$122.78

$53.23 premium

UndervaluedFair: $69.55Overvalued
TSMUndervalued (+49.5%)

Margin of Safety

+49.5%

Fair Value

$839.44

Current Price

$415.17

$424.27 discount

UndervaluedFair: $839.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SYNA1 strengths · Avg: 8.0/10
PEG RatioValuation
0.518/10

Growing faster than its price suggests

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.18T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
32.8%10/10

Every $100 of equity generates 33 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

SYNA4 concerns · Avg: 2.3/10
Altman Z-ScoreHealth
1.894/10

Grey zone — moderate risk

Return on EquityProfitability
-3.5%2/10

ROE of -3.5% — below average capital efficiency

EPS GrowthGrowth
-83.6%2/10

Earnings declined 83.6%

Profit MarginProfitability
-4.1%1/10

Currently unprofitable

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
36.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
63.5x2/10

Trading at 63.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : SYNA

The strongest argument for SYNA centers on PEG Ratio. Revenue growth of 10.4% demonstrates continued momentum. PEG of 0.51 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 : SYNA

The primary concerns for SYNA are Altman Z-Score, Return on Equity, EPS Growth.

Bear Case : TSM

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

Key Dynamics to Monitor

SYNA profiles as a turnaround stock while TSM is a growth play — different risk/reward profiles.

SYNA carries more volatility with a beta of 1.96 — 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 39/100), 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.

Synaptics Incorporated

TECHNOLOGY · SEMICONDUCTORS · USA

Synaptics Incorporated develops, markets and sells intuitive human interface solutions for electronic devices and products globally. The company is headquartered in San Jose, California.

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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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