Allegro Microsystems Inc (ALGM)vsTaiwan Semiconductor Manufacturing (TSM)
ALGM
Allegro Microsystems Inc
$32.15
+4.70%
TECHNOLOGY · Cap: $6.16B
TSM
Taiwan Semiconductor Manufacturing
$398.63
+1.55%
TECHNOLOGY · Cap: $2.27T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 522644% more annual revenue ($4.94T vs $945.93M). TSM leads profitability with a 51.1% profit margin vs 1.5%. TSM trades at a lower P/E of 28.3x. TSM earns a higher WallStSmart Score of 86/100 (A).
ALGM
Avoid33
out of 100
Grade: F
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-25.9%
Fair Value
$26.24
Current Price
$32.15
$5.91 premium
Margin of Safety
+55.1%
Fair Value
$979.05
Current Price
$398.63
$580.42 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Revenue surging 27.5% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Keeps 51 of every $100 in revenue as profit
Strong operational efficiency at 58.7%
Revenue surging 50.9% year-over-year
Earnings expanding 68.7% YoY
Areas to Watch
1.5% margin — thin
Premium valuation, high expectations priced in
ROE of -1.6% — below average capital efficiency
Earnings declined 48.5%
Moderate valuation
Trading at 76.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ALGM
The strongest argument for ALGM centers on Debt/Equity, Revenue Growth. Revenue growth of 27.5% demonstrates continued momentum.
Bull Case : TSM
The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.
Bear Case : ALGM
The primary concerns for ALGM are Profit Margin, P/E Ratio, Return on Equity. A P/E of 206.4x leaves little room for execution misses. Thin 1.5% margins leave little buffer for downturns.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
ALGM carries more volatility with a beta of 1.99 — expect wider price swings.
TSM is growing revenue faster at 50.9% — sustainability is the question.
TSM generates stronger free cash flow (510.1B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 33/100), backed by strong 51.1% margins and 50.9% revenue growth. 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.
Allegro Microsystems Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Allegro MicroSystems, Inc. designs, develops, manufactures and markets sensor integrated circuits (ICs) and analog power ICs for specific applications for motion control and energy efficient systems. The company is headquartered in Manchester, New Hampshire.
Visit Website →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 →Compare with Other SEMICONDUCTORS Stocks
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