Taiwan Semiconductor Manufacturing (TSM)vsUnited Microelectronics (UMC)
TSM
Taiwan Semiconductor Manufacturing
$347.75
+1.31%
TECHNOLOGY · Cap: $1.71T
UMC
United Microelectronics
$9.31
+2.87%
TECHNOLOGY · Cap: $22.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 1503% more annual revenue ($3.81T vs $237.55B). TSM leads profitability with a 45.1% profit margin vs 17.6%. UMC appears more attractively valued with a PEG of 0.85. TSM earns a higher WallStSmart Score of 82/100 (A-).
TSM
Exceptional Buy82
out of 100
Grade: A-
UMC
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+20.3%
Fair Value
$483.91
Current Price
$347.75
$136.16 discount
Margin of Safety
+44.9%
Fair Value
$18.68
Current Price
$9.31
$9.37 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 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
Generating 18.1B in free cash flow
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
Premium valuation, high expectations priced in
Trading at 52.9x book value
Trading at 9.8x book value
2.4% revenue growth
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 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.
Bull Case : UMC
The strongest argument for UMC centers on Free Cash Flow, PEG Ratio, P/E Ratio. Profitability is solid with margins at 17.6% and operating margin at 19.8%. PEG of 0.85 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 : UMC
The primary concerns for UMC are Price/Book, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
TSM profiles as a growth stock while UMC is a value 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 68/100), backed by strong 45.1% margins and 20.5% revenue growth. UMC offers better value entry with a 44.9% 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.
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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