ON Semiconductor Corporation (ON)vsTaiwan Semiconductor Manufacturing (TSM)
ON
ON Semiconductor Corporation
$86.81
-3.68%
TECHNOLOGY · Cap: $34.00B
TSM
Taiwan Semiconductor Manufacturing
$403.41
-2.93%
TECHNOLOGY · Cap: $2.07T
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
Hold49
out of 100
Grade: D+
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ON.
Margin of Safety
+55.8%
Fair Value
$900.41
Current Price
$403.41
$497.00 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 60.3%
Revenue surging 36.0% year-over-year
Earnings expanding 77.4% YoY
Areas to Watch
4.7% revenue growth
ROE of 7.9% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Moderate valuation
Trading at 91.7x book value
Comparative Analysis Report
WallStSmart ResearchBull 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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