WallStSmart

ASE Industrial Holding Co Ltd ADR (ASX)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 490% more annual revenue ($3.81T vs $645.39B). TSM leads profitability with a 45.1% profit margin vs 6.3%. TSM appears more attractively valued with a PEG of 1.17. TSM earns a higher WallStSmart Score of 82/100 (A-).

ASX

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 5.5Value: 6.0Quality: 5.0

TSM

Exceptional Buy

82

out of 100

Grade: A-

Growth: 8.7Profit: 10.0Value: 9.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ASXUndervalued (+7.8%)

Margin of Safety

+7.8%

Fair Value

$25.74

Current Price

$21.53

$4.21 discount

UndervaluedFair: $25.74Overvalued
TSMUndervalued (+20.3%)

Margin of Safety

+20.3%

Fair Value

$483.91

Current Price

$347.75

$136.16 discount

UndervaluedFair: $483.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ASX1 strengths · Avg: 10.0/10
EPS GrowthGrowth
54.3%10/10

Earnings expanding 54.3% YoY

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$1.71T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
53.9%10/10

Strong operational efficiency at 53.9%

Free Cash FlowQuality
$388.17B10/10

Generating 388.2B in free cash flow

Altman Z-ScoreHealth
3.8610/10

Safe zone — low bankruptcy risk

Areas to Watch

ASX4 concerns · Avg: 3.3/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.6x4/10

Trading at 8.6x book value

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

PEG RatioValuation
4.962/10

Expensive relative to growth rate

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

Premium valuation, high expectations priced in

Price/BookValuation
52.9x2/10

Trading at 52.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ASX

The strongest argument for ASX centers on EPS Growth.

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.

Bear Case : ASX

The primary concerns for ASX are P/E Ratio, Price/Book, Profit Margin.

Bear Case : TSM

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

Key Dynamics to Monitor

ASX profiles as a value stock while TSM is a growth play — different risk/reward profiles.

TSM carries more volatility with a beta of 1.28 — expect wider price swings.

TSM is growing revenue faster at 20.5% — sustainability is the question.

TSM generates stronger free cash flow (388.2B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (82/100 vs 53/100), backed by strong 45.1% margins and 20.5% revenue growth. Both earn "Exceptional Buy" and "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.

ASE Industrial Holding Co Ltd ADR

TECHNOLOGY · SEMICONDUCTORS · USA

ASE Industrial Holding Co Ltd ADR is a leading provider of semiconductor manufacturing services, specializing in advanced assembly and test solutions for innovative packaging technologies. Headquartered in Taiwan, the company is integral to the global electronics supply chain, catering to various sectors such as telecommunications, consumer electronics, and automotive. ASE’s dedication to research and development drives its commitment to innovation and quality, positioning it for robust growth in an increasingly competitive and evolving technological environment. With a reputation for operational excellence, ASE is well-equipped to adapt to market demands and capitalize on emerging opportunities.

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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