WallStSmart

Taiwan Semiconductor Manufacturing (TSM)vsWex Inc (WEX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 158938% more annual revenue ($4.44T vs $2.79B). TSM leads profitability with a 49.9% profit margin vs 12.6%. TSM appears more attractively valued with a PEG of 0.79. 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

WEX

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 5.7Quality: 3.0
Piotroski: 3/9Altman Z: 0.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TSMUndervalued (+50.6%)

Margin of Safety

+50.6%

Fair Value

$889.36

Current Price

$433.24

$456.12 discount

UndervaluedFair: $889.36Overvalued

Intrinsic value data unavailable for WEX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.22T10/10

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

WEX3 strengths · Avg: 9.0/10
EPS GrowthGrowth
57.1%10/10

Earnings expanding 57.1% YoY

Return on EquityProfitability
24.4%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

Areas to Watch

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
88.6x2/10

Trading at 88.6x book value

WEX4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-121.10M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.662/10

Distress zone — elevated risk

Debt/EquityHealth
3.981/10

Elevated debt levels

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 : WEX

The strongest argument for WEX centers on EPS Growth, Return on Equity, Operating Margin. Revenue growth of 14.2% demonstrates continued momentum. PEG of 1.03 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 : WEX

The primary concerns for WEX are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 3.98 is elevated, increasing financial risk.

Key Dynamics to Monitor

TSM profiles as a growth stock while WEX is a value 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 73/100), backed by strong 49.9% margins and 36.0% 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.

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Wex Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

WEX Inc. offers financial technology services in North America, Asia Pacific, and Europe. The company is headquartered in Portland, Maine.

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