Teradyne Inc (TER)vsTaiwan Semiconductor Manufacturing (TSM)
TER
Teradyne Inc
$212.74
+2.57%
TECHNOLOGY · Cap: $42.84B
TSM
Taiwan Semiconductor Manufacturing
$353.10
+6.33%
TECHNOLOGY · Cap: $2.27T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 98781% more annual revenue ($4.94T vs $5.00B). TSM leads profitability with a 51.1% profit margin vs 27.5%. TER appears more attractively valued with a PEG of 0.46. TSM earns a higher WallStSmart Score of 86/100 (A).
TER
Strong Buy79
out of 100
Grade: B+
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for TER.
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
Growing faster than its price suggests
Every $100 of equity generates 33 in profit
Strong operational efficiency at 30.9%
Revenue surging 69.8% year-over-year
Earnings expanding 189.3% YoY
Conservative balance sheet, low leverage
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
Premium valuation, high expectations priced in
Trading at 9.0x book value
Weak financial health signals
Moderate valuation
Trading at 67.4x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : TER
The strongest argument for TER centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 27.5% and operating margin at 30.9%. Revenue growth of 69.8% demonstrates continued momentum.
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 : TER
The primary concerns for TER are P/E Ratio, Price/Book, Piotroski F-Score.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
TER carries more volatility with a beta of 1.75 — expect wider price swings.
TER is growing revenue faster at 69.8% — sustainability is the question.
TSM generates stronger free cash flow (510.1B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 79/100), backed by strong 51.1% margins and 50.9% revenue growth. 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.
Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
Visit Website →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.
Visit Website →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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