WallStSmart

Taiwan Semiconductor Manufacturing (TSM)vsTwilio Inc (TWLO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 79588% more annual revenue ($4.44T vs $5.57B). TSM leads profitability with a 49.9% profit margin vs 20.6%. TWLO appears more attractively valued with a PEG of 0.41. TSM earns a higher WallStSmart Score of 86/100 (A).

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.85

TWLO

Strong Buy

69

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 8.0Quality: 8.5
Piotroski: 4/9Altman Z: 2.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TSMUndervalued (+50.6%)

Margin of Safety

+50.6%

Fair Value

$889.36

Current Price

$433.24

$456.12 discount

UndervaluedFair: $889.36Overvalued
TWLOUndervalued (+40.0%)

Margin of Safety

+40.0%

Fair Value

$246.60

Current Price

$227.35

$19.25 discount

UndervaluedFair: $246.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.22T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
49.9%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Revenue GrowthGrowth
36.0%10/10

Revenue surging 36.0% year-over-year

EPS GrowthGrowth
77.4%10/10

Earnings expanding 77.4% YoY

TWLO5 strengths · Avg: 9.2/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

EPS GrowthGrowth
4672.0%10/10

Earnings expanding 4672.0% YoY

Profit MarginProfitability
20.6%9/10

Keeps 21 of every $100 in revenue as profit

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
22.0%8/10

Revenue surging 22.0% year-over-year

Areas to Watch

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
88.6x2/10

Trading at 88.6x book value

TWLO1 concerns · Avg: 4.0/10
P/E RatioValuation
32.6x4/10

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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bull Case : TWLO

The strongest argument for TWLO centers on PEG Ratio, EPS Growth, Profit Margin. Profitability is solid with margins at 20.6% and operating margin at 7.8%. Revenue growth of 22.0% demonstrates continued momentum.

Bear Case : TSM

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

Bear Case : TWLO

The primary concerns for TWLO are P/E Ratio.

Key Dynamics to Monitor

TWLO carries more volatility with a beta of 1.38 — expect wider price swings.

TSM is growing revenue faster at 36.0% — sustainability is the question.

TSM generates stronger free cash flow (287.4B), providing more financial flexibility.

Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (86/100 vs 69/100), backed by strong 49.9% margins and 36.0% revenue growth. TWLO offers better value entry with a 40.0% 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.

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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