Arista Networks (ANET)vsTaiwan Semiconductor Manufacturing (TSM)
ANET
Arista Networks
$199.39
-0.07%
TECHNOLOGY · Cap: $238.36B
TSM
Taiwan Semiconductor Manufacturing
$434.67
+1.02%
TECHNOLOGY · Cap: $2.22T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 42027% more annual revenue ($4.44T vs $10.54B). TSM leads profitability with a 49.9% profit margin vs 38.4%. TSM appears more attractively valued with a PEG of 0.79. TSM earns a higher WallStSmart Score of 86/100 (A).
ANET
Strong Buy78
out of 100
Grade: B+
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+66.3%
Fair Value
$592.77
Current Price
$199.39
$393.38 discount
Margin of Safety
+51.5%
Fair Value
$886.73
Current Price
$434.67
$452.06 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 38 of every $100 in revenue as profit
Strong operational efficiency at 45.4%
Revenue surging 37.7% year-over-year
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 60.3%
Revenue surging 36.0% year-over-year
Earnings expanding 77.4% YoY
Areas to Watch
Trading at 17.0x book value
Weak financial health signals
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 88.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ANET
The strongest argument for ANET centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 38.4% and operating margin at 45.4%. Revenue growth of 37.7% 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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.
Bear Case : ANET
The primary concerns for ANET are Price/Book, Piotroski F-Score, P/E Ratio. A P/E of 61.0x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
ANET carries more volatility with a beta of 1.62 — expect wider price swings.
ANET is growing revenue faster at 37.7% — sustainability is the question.
TSM generates stronger free cash flow (287.4B), providing more financial flexibility.
Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 78/100), backed by strong 49.9% margins and 36.0% revenue growth. ANET offers better value entry with a 66.3% margin of safety. 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.
Arista Networks
TECHNOLOGY · COMPUTER HARDWARE · USA
Arista Networks (formerly Arastra) is an American computer networking company headquartered in Santa Clara, California. The company designs and sells multilayer network switches to deliver software-defined networking (SDN) solutions for large datacenter, cloud computing, high-performance computing, and high-frequency trading environments.
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 COMPUTER HARDWARE Stocks
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