Taiwan Semiconductor Manufacturing (TSM)vsUltra Clean Holdings Inc (UCTT)
TSM
Taiwan Semiconductor Manufacturing
$436.87
+0.60%
TECHNOLOGY · Cap: $2.27T
UCTT
Ultra Clean Holdings Inc
$55.88
+8.55%
TECHNOLOGY · Cap: $2.53B
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 225156% more annual revenue ($4.94T vs $2.20B). TSM leads profitability with a 51.1% profit margin vs -1.1%. UCTT appears more attractively valued with a PEG of 0.35. TSM earns a higher WallStSmart Score of 86/100 (A).
TSM
Exceptional Buy86
out of 100
Grade: A
UCTT
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+55.1%
Fair Value
$979.05
Current Price
$436.87
$542.18 discount
Margin of Safety
-25.1%
Fair Value
$44.69
Current Price
$55.88
$11.19 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Keeps 51 of every $100 in revenue as profit
Strong operational efficiency at 58.7%
Revenue surging 50.9% year-over-year
Earnings expanding 68.7% YoY
Growing faster than its price suggests
Revenue surging 24.3% year-over-year
Areas to Watch
Moderate valuation
Trading at 83.4x book value
Operating margin of 4.6%
Elevated debt levels
ROE of -30.9% — below average capital efficiency
Earnings declined 40.1%
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 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.
Bull Case : UCTT
The strongest argument for UCTT centers on PEG Ratio, Revenue Growth. Revenue growth of 24.3% demonstrates continued momentum. PEG of 0.35 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, Debt/Equity, Return on Equity.
Key Dynamics to Monitor
UCTT carries more volatility with a beta of 1.85 — expect wider price swings.
TSM is growing revenue faster at 50.9% — sustainability is the question.
TSM generates stronger free cash flow (510.1B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 44/100), backed by strong 51.1% margins and 50.9% revenue growth. 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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