Coherent Inc (COHR)vsTaiwan Semiconductor Manufacturing (TSM)
COHR
Coherent Inc
$266.49
-12.73%
TECHNOLOGY · Cap: $57.41B
TSM
Taiwan Semiconductor Manufacturing
$433.24
+1.22%
TECHNOLOGY · Cap: $2.22T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 62282% more annual revenue ($4.44T vs $7.12B). TSM leads profitability with a 49.9% profit margin vs 11.3%. TSM appears more attractively valued with a PEG of 0.79. TSM earns a higher WallStSmart Score of 86/100 (A).
COHR
Buy62
out of 100
Grade: C+
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-86.0%
Fair Value
$164.21
Current Price
$266.49
$102.28 premium
Margin of Safety
+50.6%
Fair Value
$889.36
Current Price
$433.24
$456.12 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 33.7% year-over-year
Earnings expanding 73.0% YoY
Large-cap with strong market position
Growing faster than its price suggests
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
Grey zone — moderate risk
ROE of 7.4% — below average capital efficiency
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Trading at 88.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : COHR
The strongest argument for COHR centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 33.7% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.
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 : COHR
The primary concerns for COHR are Altman Z-Score, Return on Equity, P/E Ratio. A P/E of 71.0x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
COHR carries more volatility with a beta of 2.10 — 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 SCIENTIFIC & TECHNICAL INSTRUMENTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 62/100), backed by strong 49.9% margins and 36.0% 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.
Coherent Inc
TECHNOLOGY · SCIENTIFIC & TECHNICAL INSTRUMENTS · USA
Coherent, Inc. provides lasers, laser-based technologies, and laser-based system solutions for a variety of scientific, commercial, and industrial research applications. The company is headquartered in Santa Clara, California.
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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