WallStSmart

Taiwan Semiconductor Manufacturing (TSM)vsVeriSign Inc (VRSN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 243716% more annual revenue ($4.10T vs $1.68B). VRSN leads profitability with a 50.0% profit margin vs 46.5%. TSM appears more attractively valued with a PEG of 1.22. TSM earns a higher WallStSmart Score of 84/100 (A-).

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.86

VRSN

Buy

52

out of 100

Grade: C-

Growth: 6.0Profit: 8.5Value: 2.7Quality: 4.3
Piotroski: 6/9Altman Z: -9.43
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TSMUndervalued (+72.4%)

Margin of Safety

+72.4%

Fair Value

$1399.41

Current Price

$396.06

$1003.35 discount

UndervaluedFair: $1399.41Overvalued
VRSNSignificantly Overvalued (-85.7%)

Margin of Safety

-85.7%

Fair Value

$116.14

Current Price

$268.66

$152.52 premium

UndervaluedFair: $116.14Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.04T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.2%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
46.5%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
58.1%10/10

Strong operational efficiency at 58.1%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

EPS GrowthGrowth
58.4%10/10

Earnings expanding 58.4% YoY

VRSN2 strengths · Avg: 10.0/10
Profit MarginProfitability
50.0%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
68.4%10/10

Strong operational efficiency at 68.4%

Areas to Watch

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
33.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
60.6x2/10

Trading at 60.6x book value

VRSN4 concerns · Avg: 2.8/10
P/E RatioValuation
30.1x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
3.272/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-9.432/10

Distress zone — elevated risk

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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.

Bull Case : VRSN

The strongest argument for VRSN centers on Profit Margin, Operating Margin. Profitability is solid with margins at 50.0% and operating margin at 68.4%.

Bear Case : TSM

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

Bear Case : VRSN

The primary concerns for VRSN are P/E Ratio, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

TSM profiles as a growth stock while VRSN is a mature 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 52/100), backed by strong 46.5% margins and 35.1% revenue growth. Both earn "Exceptional Buy" and "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.

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VeriSign Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Verisign Inc. is an American company based in Reston, Virginia, United States that operates a diverse array of network infrastructure, including two of the Internet's thirteen root nameservers. Verisign also offers a range of security services, including managed DNS, distributed denial-of-service (DDoS) attack mitigation and cyber-threat reporting.

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