Teradyne Inc (TER)vsTaiwan Semiconductor Manufacturing (TSM)
TER
Teradyne Inc
$379.31
-1.45%
TECHNOLOGY · Cap: $63.09B
TSM
Taiwan Semiconductor Manufacturing
$420.04
+0.44%
TECHNOLOGY · Cap: $2.09T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 99373% more annual revenue ($4.44T vs $4.46B). TSM leads profitability with a 49.9% profit margin vs 25.8%. TSM appears more attractively valued with a PEG of 0.91. 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
+55.0%
Fair Value
$897.55
Current Price
$420.04
$477.51 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.2%
Revenue surging 103.9% year-over-year
Earnings expanding 385.8% YoY
Conservative balance sheet, low leverage
Generating 506.4B in free cash flow
Large-cap with strong market position
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 60.3%
Revenue surging 36.0% year-over-year
Earnings expanding 77.4% YoY
Areas to Watch
Trading at 17.3x book value
ROE of 0.0% — below average capital efficiency
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 87.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 25.8% and operating margin at 33.2%. Revenue growth of 103.9% 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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.
Bear Case : TER
The primary concerns for TER are Price/Book, Return on Equity, P/E Ratio. A P/E of 55.4x leaves little room for execution misses.
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 1.79 — expect wider price swings.
TER is growing revenue faster at 103.9% — sustainability is the question.
TER generates stronger free cash flow (506.4B), 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 49.9% margins and 36.0% 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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