WallStSmart

Darden Restaurants Inc (DRI)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 32053% more annual revenue ($4.10T vs $12.76B). TSM leads profitability with a 46.5% profit margin vs 8.7%. TSM appears more attractively valued with a PEG of 1.25. TSM earns a higher WallStSmart Score of 84/100 (A-).

DRI

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.0Value: 4.0Quality: 4.3
Piotroski: 4/9Altman Z: 1.33

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRISignificantly Overvalued (-64.2%)

Margin of Safety

-64.2%

Fair Value

$129.57

Current Price

$196.23

$66.66 premium

UndervaluedFair: $129.57Overvalued
TSMUndervalued (+72.3%)

Margin of Safety

+72.3%

Fair Value

$1394.10

Current Price

$411.68

$982.42 discount

UndervaluedFair: $1394.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRI1 strengths · Avg: 10.0/10
Return on EquityProfitability
51.5%10/10

Every $100 of equity generates 52 in profit

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.18T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.2%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
46.5%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
58.1%10/10

Strong operational efficiency at 58.1%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

EPS GrowthGrowth
58.4%10/10

Earnings expanding 58.4% YoY

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Price/BookValuation
10.7x4/10

Trading at 10.7x book value

EPS GrowthGrowth
-3.3%2/10

Earnings declined 3.3%

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
36.0x4/10

Premium valuation, high expectations priced in

Price/BookValuation
62.9x2/10

Trading at 62.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity.

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.

Bear Case : DRI

The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.

Bear Case : TSM

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

Key Dynamics to Monitor

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

TSM carries more volatility with a beta of 1.26 — expect wider price swings.

TSM is growing revenue faster at 35.1% — sustainability is the question.

TSM generates stronger free cash flow (377.1B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (84/100 vs 55/100), backed by strong 46.5% margins and 35.1% 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.

Darden Restaurants Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando.

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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