Taiwan Semiconductor Manufacturing (TSM)vsUltra Clean Holdings Inc (UCTT)
TSM
Taiwan Semiconductor Manufacturing
$396.06
+0.57%
TECHNOLOGY · Cap: $2.04T
UCTT
Ultra Clean Holdings Inc
$78.15
+8.53%
TECHNOLOGY · Cap: $3.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 199701% more annual revenue ($4.10T vs $2.05B). TSM leads profitability with a 46.5% profit margin vs -8.8%. UCTT appears more attractively valued with a PEG of 1.17. TSM earns a higher WallStSmart Score of 84/100 (A-).
TSM
Exceptional Buy84
out of 100
Grade: A-
UCTT
Hold37
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.4%
Fair Value
$1399.41
Current Price
$396.06
$1003.35 discount
Margin of Safety
+22.6%
Fair Value
$72.22
Current Price
$78.15
$5.93 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 58.1%
Revenue surging 35.1% year-over-year
Earnings expanding 58.4% YoY
No standout strengths identified
Areas to Watch
Premium valuation, high expectations priced in
Trading at 60.6x book value
Operating margin of 2.1%
Weak financial health signals
ROE of -20.0% — below average capital efficiency
Revenue declined 10.0%
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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.
Bull Case : UCTT
PEG of 1.17 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 : UCTT
The primary concerns for UCTT are Operating Margin, Piotroski F-Score, Return on Equity.
Key Dynamics to Monitor
TSM profiles as a growth stock while UCTT is a turnaround play — different risk/reward profiles.
UCTT carries more volatility with a beta of 1.81 — 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 37/100), backed by strong 46.5% margins and 35.1% revenue growth. UCTT offers better value entry with a 22.6% 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.
Visit Website →Ultra Clean Holdings Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Ultra Clean Holdings, Inc. designs, designs and manufactures production tools, modules and subsystems for the semiconductor and display capital equipment markets in the United States and internationally. The company is headquartered in Hayward, California.
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