Taiwan Semiconductor Manufacturing (TSM)vsVaronis Systems (VRNS)
TSM
Taiwan Semiconductor Manufacturing
$396.06
+0.57%
TECHNOLOGY · Cap: $2.04T
VRNS
Varonis Systems
$26.50
+0.76%
TECHNOLOGY · Cap: $3.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 658070% more annual revenue ($4.10T vs $623.53M). TSM leads profitability with a 46.5% profit margin vs -20.7%. TSM appears more attractively valued with a PEG of 1.22. TSM earns a higher WallStSmart Score of 84/100 (A-).
TSM
Exceptional Buy84
out of 100
Grade: A-
VRNS
Avoid28
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.4%
Fair Value
$1396.69
Current Price
$396.06
$1000.63 discount
Margin of Safety
+60.5%
Fair Value
$66.55
Current Price
$26.50
$40.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 36 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
No standout strengths identified
Areas to Watch
Premium valuation, high expectations priced in
Trading at 60.6x book value
0.0% earnings growth
Weak financial health signals
Expensive relative to growth rate
ROE of -24.5% — below average capital efficiency
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 : VRNS
VRNS has a balanced fundamental profile.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Bear Case : VRNS
The primary concerns for VRNS are EPS Growth, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
TSM profiles as a growth stock while VRNS 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 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 28/100), backed by strong 46.5% margins and 35.1% revenue growth. VRNS offers better value entry with a 60.5% 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.
Visit Website →Varonis Systems
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Varonis Systems (VRNS) is a prominent leader in the cybersecurity sector, offering sophisticated data security and analytics solutions that safeguard sensitive information across both on-premises and cloud infrastructures. With a strong emphasis on machine learning and behavioral analytics, Varonis enables organizations to proactively detect and mitigate potential data risks while ensuring compliance with evolving regulatory requirements. Catering to a wide array of industries, the company has established itself as an essential partner for enterprises navigating the complexities of data protection in an increasingly hostile cyber environment. As demand for comprehensive data security solutions continues to surge, Varonis stands poised for robust growth in a rapidly expanding market.
Compare with Other SEMICONDUCTORS Stocks
Want to dig deeper into these stocks?