WallStSmart

Taiwan Semiconductor Manufacturing (TSM)vsTwilio Inc (TWLO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 80889% more annual revenue ($4.10T vs $5.07B). TSM leads profitability with a 46.5% profit margin vs 0.7%. TWLO appears more attractively valued with a PEG of 0.29. TSM earns a higher WallStSmart Score of 84/100 (A-).

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.86

TWLO

Hold

50

out of 100

Grade: D+

Growth: 5.3Profit: 4.5Value: 7.3Quality: 7.3
Piotroski: 4/9Altman Z: 2.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TSMUndervalued (+72.4%)

Margin of Safety

+72.4%

Fair Value

$1399.41

Current Price

$396.06

$1003.35 discount

UndervaluedFair: $1399.41Overvalued
TWLOUndervalued (+49.9%)

Margin of Safety

+49.9%

Fair Value

$281.16

Current Price

$148.06

$133.10 discount

UndervaluedFair: $281.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.04T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.2%10/10

Every $100 of equity generates 36 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

TWLO2 strengths · Avg: 9.0/10
PEG RatioValuation
0.2910/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
33.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
60.6x2/10

Trading at 60.6x book value

TWLO4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
0.4%3/10

ROE of 0.4% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

P/E RatioValuation
679.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : TWLO

The strongest argument for TWLO centers on PEG Ratio, Price/Book. Revenue growth of 14.3% demonstrates continued momentum. PEG of 0.29 suggests the stock is reasonably priced for its growth.

Bear Case : TSM

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

Bear Case : TWLO

The primary concerns for TWLO are EPS Growth, Return on Equity, Profit Margin. A P/E of 679.0x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

TSM profiles as a growth stock while TWLO is a value play — different risk/reward profiles.

TWLO carries more volatility with a beta of 1.28 — 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 50/100), backed by strong 46.5% margins and 35.1% revenue growth. TWLO offers better value entry with a 49.9% margin of safety. 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.

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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Twilio Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Twilio Inc. provides a cloud communications platform that enables developers to build, scale, and operate customer engagement within software applications in the United States and internationally. The company is headquartered in San Francisco, California.

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