Cognizant Technology Solutions Corp Class A (CTSH)vsTaiwan Semiconductor Manufacturing (TSM)
CTSH
Cognizant Technology Solutions Corp Class A
$64.72
-2.74%
TECHNOLOGY · Cap: $28.16B
TSM
Taiwan Semiconductor Manufacturing
$375.44
+6.33%
TECHNOLOGY · Cap: $2.27T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 22748% more annual revenue ($4.94T vs $21.64B). TSM leads profitability with a 51.1% profit margin vs 10.3%. TSM appears more attractively valued with a PEG of 0.77. TSM earns a higher WallStSmart Score of 86/100 (A).
CTSH
Buy63
out of 100
Grade: C+
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.1%
Fair Value
$273.42
Current Price
$64.72
$208.70 discount
Margin of Safety
+61.5%
Fair Value
$976.07
Current Price
$375.44
$600.63 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
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
4.5% revenue growth
3.8% earnings growth
Moderate valuation
Trading at 71.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : CTSH
The strongest argument for CTSH centers on Altman Z-Score, Debt/Equity, PEG Ratio. PEG of 0.97 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 51.1% and operating margin at 58.7%. Revenue growth of 50.9% demonstrates continued momentum.
Bear Case : CTSH
The primary concerns for CTSH are Revenue Growth, EPS Growth.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
CTSH profiles as a value stock while TSM is a growth play — different risk/reward profiles.
TSM carries more volatility with a beta of 1.24 — 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.
Bottom Line
TSM scores higher overall (86/100 vs 63/100), backed by strong 51.1% margins and 50.9% revenue growth. CTSH offers better value entry with a 74.1% margin of safety. 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.
Cognizant Technology Solutions Corp Class A
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Cognizant is an American multinational technology company that provides business consulting, information technology and outsourcing services. It is headquartered in Teaneck, New Jersey, United States.
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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