Taiwan Semiconductor Manufacturing (TSM)vsUnited Microelectronics (UMC)
TSM
Taiwan Semiconductor Manufacturing
$418.45
+1.86%
TECHNOLOGY · Cap: $2.19T
UMC
United Microelectronics
$22.18
-2.94%
TECHNOLOGY · Cap: $56.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 1605% more annual revenue ($4.10T vs $240.73B). TSM leads profitability with a 46.5% profit margin vs 20.8%. TSM appears more attractively valued with a PEG of 1.31. TSM earns a higher WallStSmart Score of 84/100 (A-).
TSM
Exceptional Buy84
out of 100
Grade: A-
UMC
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+49.5%
Fair Value
$841.95
Current Price
$418.45
$423.50 discount
Margin of Safety
+13.3%
Fair Value
$24.71
Current Price
$22.18
$2.53 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 33 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
Earnings expanding 108.1% YoY
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Generating 8.8B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Trading at 64.0x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.
Bull Case : UMC
The strongest argument for UMC centers on EPS Growth, Market Cap, Profit Margin. Profitability is solid with margins at 20.8% and operating margin at 18.5%.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Bear Case : UMC
The primary concerns for UMC are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
TSM profiles as a growth stock while UMC is a mature play — different risk/reward profiles.
TSM carries more volatility with a beta of 1.26 — 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 67/100), backed by strong 46.5% margins and 35.1% 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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