WallStSmart

NXP Semiconductors NV (NXPI)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 30946% more annual revenue ($3.81T vs $12.27B). TSM leads profitability with a 45.1% profit margin vs 16.5%. NXPI appears more attractively valued with a PEG of 0.61. TSM earns a higher WallStSmart Score of 82/100 (A-).

NXPI

Buy

63

out of 100

Grade: C+

Growth: 3.3Profit: 8.5Value: 7.3Quality: 6.8
Piotroski: 2/9

TSM

Exceptional Buy

82

out of 100

Grade: A-

Growth: 8.7Profit: 10.0Value: 9.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NXPISignificantly Overvalued (-362.0%)

Margin of Safety

-362.0%

Fair Value

$54.06

Current Price

$197.61

$143.55 premium

UndervaluedFair: $54.06Overvalued
TSMUndervalued (+20.3%)

Margin of Safety

+20.3%

Fair Value

$483.91

Current Price

$347.75

$136.16 discount

UndervaluedFair: $483.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NXPI3 strengths · Avg: 8.3/10
Return on EquityProfitability
20.7%9/10

Every $100 of equity generates 21 in profit

PEG RatioValuation
0.618/10

Growing faster than its price suggests

Operating MarginProfitability
26.3%8/10

Strong operational efficiency at 26.3%

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$1.71T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
53.9%10/10

Strong operational efficiency at 53.9%

Free Cash FlowQuality
$388.17B10/10

Generating 388.2B in free cash flow

Altman Z-ScoreHealth
3.8610/10

Safe zone — low bankruptcy risk

Areas to Watch

NXPI3 concerns · Avg: 2.7/10
Debt/EquityHealth
1.223/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-6.8%2/10

Earnings declined 6.8%

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
52.9x2/10

Trading at 52.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : NXPI

The strongest argument for NXPI centers on Return on Equity, PEG Ratio, Operating Margin. Profitability is solid with margins at 16.5% and operating margin at 26.3%. PEG of 0.61 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 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.

Bear Case : NXPI

The primary concerns for NXPI are Debt/Equity, Piotroski F-Score, EPS Growth.

Bear Case : TSM

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

Key Dynamics to Monitor

NXPI profiles as a mature stock while TSM is a growth play — different risk/reward profiles.

NXPI carries more volatility with a beta of 1.44 — expect wider price swings.

TSM is growing revenue faster at 20.5% — sustainability is the question.

TSM generates stronger free cash flow (388.2B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (82/100 vs 63/100), backed by strong 45.1% margins and 20.5% 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.

NXP Semiconductors NV

TECHNOLOGY · SEMICONDUCTORS · USA

NXP Semiconductors N.V. is a Dutch semiconductor manufacturer with headquarters in Eindhoven, Netherlands.

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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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