Taiwan Semiconductor Manufacturing (TSM)vsTexas Instruments Incorporated (TXN)
TSM
Taiwan Semiconductor Manufacturing
$339.57
-1.85%
TECHNOLOGY · Cap: $1.79T
TXN
Texas Instruments Incorporated
$190.78
-1.31%
TECHNOLOGY · Cap: $177.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 21442% more annual revenue ($3.81T vs $17.68B). TSM leads profitability with a 45.1% profit margin vs 28.3%. TSM appears more attractively valued with a PEG of 1.24. TSM earns a higher WallStSmart Score of 82/100 (A-).
TSM
Exceptional Buy82
out of 100
Grade: A-
TXN
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+20.1%
Fair Value
$482.51
Current Price
$339.57
$142.94 discount
Margin of Safety
-407.1%
Fair Value
$37.13
Current Price
$190.78
$153.65 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 45 of every $100 in revenue as profit
Strong operational efficiency at 53.9%
Generating 388.2B in free cash flow
Safe zone — low bankruptcy risk
Every $100 of equity generates 30 in profit
Strong operational efficiency at 34.0%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Generating 1.3B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Trading at 51.9x book value
Premium valuation, high expectations priced in
Trading at 10.6x book value
Earnings declined 3.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : TSM
The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.
Bull Case : TXN
The strongest argument for TXN centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.3% and operating margin at 34.0%. Revenue growth of 10.4% demonstrates continued momentum.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Bear Case : TXN
The primary concerns for TXN are P/E Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
TSM profiles as a growth stock while TXN is a mature play — different risk/reward profiles.
TSM carries more volatility with a beta of 1.28 — expect wider price swings.
TSM is growing revenue faster at 20.5% — sustainability is the question.
TSM generates stronger free cash flow (388.2B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (82/100 vs 63/100), backed by strong 45.1% margins and 20.5% revenue growth. Both earn "Exceptional Buy" and "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.
Visit Website →Texas Instruments Incorporated
TECHNOLOGY · SEMICONDUCTORS · USA
Texas Instruments Incorporated (TI) is an American technology company headquartered in Dallas, Texas, that designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. It is one of the top 10 semiconductor companies worldwide based on sales volume.
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