Onto Innovation Inc (ONTO)vsTaiwan Semiconductor Manufacturing (TSM)
ONTO
Onto Innovation Inc
$281.26
+4.59%
TECHNOLOGY · Cap: $17.18B
TSM
Taiwan Semiconductor Manufacturing
$433.24
+1.22%
TECHNOLOGY · Cap: $2.22T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 396324% more annual revenue ($4.44T vs $1.12B). TSM leads profitability with a 49.9% profit margin vs 11.8%. ONTO appears more attractively valued with a PEG of 0.76. TSM earns a higher WallStSmart Score of 86/100 (A).
ONTO
Strong Buy66
out of 100
Grade: B-
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ONTO.
Margin of Safety
+50.6%
Fair Value
$889.36
Current Price
$433.24
$456.12 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 35.3% year-over-year
Earnings expanding 75.4% YoY
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Strong operational efficiency at 23.0%
Mega-cap, among the largest globally
Every $100 of equity generates 35 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
ROE of 6.9% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 88.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ONTO
The strongest argument for ONTO centers on Revenue Growth, EPS Growth, Altman Z-Score. Revenue growth of 35.3% demonstrates continued momentum. PEG of 0.76 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 : ONTO
The primary concerns for ONTO are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 104.9x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
ONTO carries more volatility with a beta of 1.58 — expect wider price swings.
TSM is growing revenue faster at 36.0% — sustainability is the question.
TSM generates stronger free cash flow (287.4B), providing more financial flexibility.
Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 66/100), backed by strong 49.9% margins and 36.0% revenue growth. Both earn "Exceptional Buy" and "Strong 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.
Onto Innovation Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Onto Innovation Inc. is dedicated to the design, development, manufacture and support of process control tools that perform macrodefect inspection and metrology, lithography systems, and process control analytical software worldwide. The company is headquartered in Wilmington, Massachusetts.
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 →Compare with Other SEMICONDUCTOR EQUIPMENT & MATERIALS Stocks
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