WallStSmart

Garmin Ltd (GRMN)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 54883% more annual revenue ($4.10T vs $7.46B). TSM leads profitability with a 46.5% profit margin vs 23.3%. TSM appears more attractively valued with a PEG of 1.28. TSM earns a higher WallStSmart Score of 84/100 (A-).

GRMN

Buy

61

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 3.3Quality: 9.0
Piotroski: 5/9Altman Z: 5.27

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

GRMNSignificantly Overvalued (-27.5%)

Margin of Safety

-27.5%

Fair Value

$162.03

Current Price

$242.38

$80.35 premium

UndervaluedFair: $162.03Overvalued
TSMUndervalued (+72.3%)

Margin of Safety

+72.3%

Fair Value

$1391.51

Current Price

$404.54

$986.97 discount

UndervaluedFair: $1391.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GRMN5 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.2710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
23.3%9/10

Keeps 23 of every $100 in revenue as profit

Operating MarginProfitability
24.6%8/10

Strong operational efficiency at 24.6%

EPS GrowthGrowth
21.5%8/10

Earnings expanding 21.5% YoY

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.14T10/10

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

GRMN2 concerns · Avg: 3.0/10
P/E RatioValuation
27.0x4/10

Moderate valuation

PEG RatioValuation
3.402/10

Expensive relative to growth rate

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
35.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
61.9x2/10

Trading at 61.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : GRMN

The strongest argument for GRMN centers on Debt/Equity, Altman Z-Score, Profit Margin. Profitability is solid with margins at 23.3% and operating margin at 24.6%. Revenue growth of 14.2% demonstrates continued momentum.

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 : GRMN

The primary concerns for GRMN are P/E Ratio, PEG Ratio.

Bear Case : TSM

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

Key Dynamics to Monitor

GRMN profiles as a mature 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 61/100), 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.

Garmin Ltd

TECHNOLOGY · SCIENTIFIC & TECHNICAL INSTRUMENTS · USA

Garmin Ltd. is an American multinational technology company with headquarters in Olathe, Kansas.

Visit Website →

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 →

Want to dig deeper into these stocks?