WallStSmart

Taiwan Semiconductor Manufacturing (TSM)vsZoom Video Communications Inc (ZM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 89915% more annual revenue ($4.44T vs $4.93B). TSM leads profitability with a 49.9% profit margin vs 42.0%. TSM appears more attractively valued with a PEG of 1.01. TSM earns a higher WallStSmart Score of 84/100 (A-).

TSM

Exceptional Buy

84

out of 100

Grade: A-

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

ZM

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 8.5Value: 5.0Quality: 9.0
Piotroski: 4/9Altman Z: 5.15
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TSMUndervalued (+56.3%)

Margin of Safety

+56.3%

Fair Value

$897.55

Current Price

$392.31

$505.24 discount

UndervaluedFair: $897.55Overvalued

Intrinsic value data unavailable for ZM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.07T10/10

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

ZM6 strengths · Avg: 9.5/10
Profit MarginProfitability
42.0%10/10

Keeps 42 of every $100 in revenue as profit

EPS GrowthGrowth
74.2%10/10

Earnings expanding 74.2% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.1510/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

P/E RatioValuation
13.4x8/10

Attractively priced relative to earnings

Areas to Watch

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
29.8x4/10

Moderate valuation

Price/BookValuation
89.2x2/10

Trading at 89.2x book value

ZM1 concerns · Avg: 2.0/10
PEG RatioValuation
4.212/10

Expensive relative to growth rate

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 : ZM

The strongest argument for ZM centers on Profit Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 42.0% and operating margin at 25.1%.

Bear Case : TSM

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

Bear Case : ZM

The primary concerns for ZM are PEG Ratio.

Key Dynamics to Monitor

TSM profiles as a growth stock while ZM 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 36.0% — sustainability is the question.

TSM generates stronger free cash flow (287.4B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (84/100 vs 70/100), 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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Zoom Video Communications Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Zoom Video Communications, Inc. provides a premier video communications platform in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.

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