WallStSmart

ASML Holding NV ADR (ASML)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 12470% more annual revenue ($4.44T vs $35.33B). TSM leads profitability with a 49.9% profit margin vs 30.1%. TSM appears more attractively valued with a PEG of 0.79. TSM earns a higher WallStSmart Score of 86/100 (A).

ASML

Strong Buy

70

out of 100

Grade: B-

Growth: 8.0Profit: 10.0Value: 4.3Quality: 7.5
Piotroski: 6/9Altman Z: 2.41

TSM

Exceptional Buy

86

out of 100

Grade: A

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ASML.

TSMUndervalued (+50.6%)

Margin of Safety

+50.6%

Fair Value

$889.36

Current Price

$433.24

$456.12 discount

UndervaluedFair: $889.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ASML6 strengths · Avg: 9.7/10
Market CapQuality
$658.69B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
48.7%10/10

Every $100 of equity generates 49 in profit

Profit MarginProfitability
30.1%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
37.1%10/10

Strong operational efficiency at 37.1%

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
21.3%8/10

Revenue surging 21.3% year-over-year

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

Areas to Watch

ASML2 concerns · Avg: 2.0/10
P/E RatioValuation
58.1x2/10

Premium valuation, high expectations priced in

Price/BookValuation
1427.1x2/10

Trading at 1427.1x book value

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

Comparative Analysis Report

WallStSmart Research

Bull Case : ASML

The strongest argument for ASML centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 30.1% and operating margin at 37.1%. Revenue growth of 21.3% 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 : ASML

The primary concerns for ASML are P/E Ratio, Price/Book. A P/E of 58.1x leaves little room for execution misses.

Bear Case : TSM

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

Key Dynamics to Monitor

ASML carries more volatility with a beta of 1.36 — 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.

Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (86/100 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.

ASML Holding NV ADR

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

ASML Holding NV develops, produces, markets, sells and services advanced semiconductor equipment systems consisting of lithography, metrology and inspection related systems for memory and logic chip manufacturers. The company is headquartered in Veldhoven, the Netherlands.

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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