Diodes Incorporated (DIOD)vsTaiwan Semiconductor Manufacturing (TSM)
DIOD
Diodes Incorporated
$89.30
+0.82%
TECHNOLOGY · Cap: $3.82B
TSM
Taiwan Semiconductor Manufacturing
$439.51
+0.60%
TECHNOLOGY · Cap: $2.27T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 302383% more annual revenue ($4.94T vs $1.63B). TSM leads profitability with a 51.1% profit margin vs 5.3%. TSM appears more attractively valued with a PEG of 0.77. TSM earns a higher WallStSmart Score of 86/100 (A).
DIOD
Buy55
out of 100
Grade: C-
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.0%
Fair Value
$70.89
Current Price
$89.30
$18.41 premium
Margin of Safety
+55.1%
Fair Value
$979.05
Current Price
$439.51
$539.54 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 21.7% year-over-year
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
1.0% earnings growth
ROE of 4.6% — below average capital efficiency
5.3% margin — thin
Premium valuation, high expectations priced in
Moderate valuation
Trading at 83.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : DIOD
The strongest argument for DIOD centers on Debt/Equity, Altman Z-Score, PEG Ratio. Revenue growth of 21.7% demonstrates continued momentum. PEG of 0.93 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 : DIOD
The primary concerns for DIOD are EPS Growth, Return on Equity, Profit Margin. A P/E of 44.3x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
DIOD carries more volatility with a beta of 1.90 — 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.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 55/100), backed by strong 51.1% margins and 50.9% 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.
Diodes Incorporated
TECHNOLOGY · SEMICONDUCTORS · USA
Diodes Incorporated designs, manufactures and supplies standard products for specific applications in the discrete, logic, analog and mixed-signal semiconductor markets worldwide. The company is headquartered in Plano, Texas.
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 SEMICONDUCTORS Stocks
Want to dig deeper into these stocks?