Taiwan Semiconductor Manufacturing (TSM)vsUnited Microelectronics (UMC)
TSM
Taiwan Semiconductor Manufacturing
$433.24
+1.22%
TECHNOLOGY · Cap: $2.22T
UMC
United Microelectronics
$22.64
+2.35%
TECHNOLOGY · Cap: $56.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 1671% more annual revenue ($4.44T vs $250.71B). TSM leads profitability with a 49.9% profit margin vs 33.3%. TSM appears more attractively valued with a PEG of 0.79. TSM earns a higher WallStSmart Score of 86/100 (A).
TSM
Exceptional Buy86
out of 100
Grade: A
UMC
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+50.6%
Fair Value
$889.36
Current Price
$433.24
$456.12 discount
Margin of Safety
+11.2%
Fair Value
$25.50
Current Price
$22.64
$2.86 discount
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 50 of every $100 in revenue as profit
Strong operational efficiency at 60.3%
Revenue surging 36.0% year-over-year
Earnings expanding 77.4% YoY
Keeps 33 of every $100 in revenue as profit
Earnings expanding 374.6% YoY
Generating 24.2B in free cash flow
Large-cap with strong market position
Conservative balance sheet, low leverage
Strong operational efficiency at 21.7%
Areas to Watch
Premium valuation, high expectations priced in
Trading at 88.6x book value
Weak financial health signals
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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.
Bull Case : UMC
The strongest argument for UMC centers on Profit Margin, EPS Growth, Free Cash Flow. Profitability is solid with margins at 33.3% and operating margin at 21.7%. Revenue growth of 17.0% demonstrates continued momentum.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Bear Case : UMC
The primary concerns for UMC are Piotroski F-Score.
Key Dynamics to Monitor
UMC carries more volatility with a beta of 1.70 — 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 77/100), backed by strong 49.9% margins and 36.0% revenue growth. 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.
Visit Website →United Microelectronics
TECHNOLOGY · SEMICONDUCTORS · USA
United Microelectronics Corporation is a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company is headquartered in Hsinchu City, Taiwan.
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