WallStSmart

ON Semiconductor Corporation (ON)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 73139% more annual revenue ($4.44T vs $6.06B). TSM leads profitability with a 49.9% profit margin vs 9.5%. ON appears more attractively valued with a PEG of 0.29. TSM earns a higher WallStSmart Score of 84/100 (A-).

ON

Hold

49

out of 100

Grade: D+

Growth: 2.7Profit: 6.0Value: 5.7Quality: 7.5
Piotroski: 3/9Altman Z: 2.84

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ON.

TSMUndervalued (+55.8%)

Margin of Safety

+55.8%

Fair Value

$900.41

Current Price

$403.41

$497.00 discount

UndervaluedFair: $900.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ON1 strengths · Avg: 10.0/10
PEG RatioValuation
0.2910/10

Growing faster than its price suggests

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.07T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
32.8%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
49.9%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Revenue GrowthGrowth
36.0%10/10

Revenue surging 36.0% year-over-year

EPS GrowthGrowth
77.4%10/10

Earnings expanding 77.4% YoY

Areas to Watch

ON4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
64.2x2/10

Premium valuation, high expectations priced in

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
29.8x4/10

Moderate valuation

Price/BookValuation
91.7x2/10

Trading at 91.7x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ON

The strongest argument for ON centers on PEG Ratio. PEG of 0.29 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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bear Case : ON

The primary concerns for ON are Revenue Growth, Return on Equity, Piotroski F-Score. A P/E of 64.2x leaves little room for execution misses.

Bear Case : TSM

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

Key Dynamics to Monitor

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

ON carries more volatility with a beta of 2.01 — expect wider price swings.

TSM is growing revenue faster at 36.0% — 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 49/100), backed by strong 49.9% margins and 36.0% revenue growth. Both earn "Exceptional Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

ON Semiconductor Corporation

TECHNOLOGY · SEMICONDUCTORS · USA

ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. The company is headquartered in Phoenix, Arizona.

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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