WallStSmart

Taiwan Semiconductor Manufacturing (TSM)vsVertex (VERX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 578068% more annual revenue ($4.44T vs $768.03M). TSM leads profitability with a 49.9% profit margin vs -0.8%. TSM earns a higher WallStSmart Score of 86/100 (A).

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.85

VERX

Avoid

29

out of 100

Grade: F

Growth: 5.3Profit: 2.5Value: 6.7Quality: 3.0
Piotroski: 3/9Altman Z: 0.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TSMUndervalued (+52.8%)

Margin of Safety

+52.8%

Fair Value

$894.73

Current Price

$422.06

$472.67 discount

UndervaluedFair: $894.73Overvalued
VERXUndervalued (+54.8%)

Margin of Safety

+54.8%

Fair Value

$28.40

Current Price

$12.30

$16.10 discount

UndervaluedFair: $28.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.09T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
49.9%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Revenue GrowthGrowth
36.0%10/10

Revenue surging 36.0% year-over-year

EPS GrowthGrowth
77.4%10/10

Earnings expanding 77.4% YoY

VERX0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
87.9x2/10

Trading at 87.9x book value

VERX4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.453/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-2.6%2/10

ROE of -2.6% — below average capital efficiency

EPS GrowthGrowth
-44.0%2/10

Earnings declined 44.0%

Comparative Analysis Report

WallStSmart Research

Bull 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 : VERX

Revenue growth of 11.1% demonstrates continued momentum.

Bear Case : TSM

The primary concerns for TSM are P/E Ratio, Price/Book.

Bear Case : VERX

The primary concerns for VERX are Debt/Equity, Piotroski F-Score, Return on Equity.

Key Dynamics to Monitor

TSM profiles as a growth stock while VERX is a turnaround play — different risk/reward profiles.

TSM carries more volatility with a beta of 1.25 — 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.

Bottom Line

TSM scores higher overall (86/100 vs 29/100), backed by strong 49.9% margins and 36.0% revenue growth. VERX offers better value entry with a 54.8% margin of safety. Both earn "Exceptional Buy" and "Avoid" 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.

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Vertex

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Vertex, Inc. provides tax technology solutions for corporations in the retail, communications, leasing, and manufacturing industries in the United States and internationally. The company is headquartered in King of Prussia, Pennsylvania.

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