Paycom Software, Inc. (PAYC)vsTaiwan Semiconductor Manufacturing (TSM)
PAYC
Paycom Software, Inc.
$137.62
+0.39%
TECHNOLOGY · Cap: $6.27B
TSM
Taiwan Semiconductor Manufacturing
$415.17
+0.68%
TECHNOLOGY · Cap: $2.18T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 195968% more annual revenue ($4.10T vs $2.09B). TSM leads profitability with a 46.5% profit margin vs 22.4%. PAYC appears more attractively valued with a PEG of 0.97. TSM earns a higher WallStSmart Score of 84/100 (A-).
PAYC
Strong Buy75
out of 100
Grade: B
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+68.5%
Fair Value
$376.50
Current Price
$137.62
$238.88 discount
Margin of Safety
+49.5%
Fair Value
$839.44
Current Price
$415.17
$424.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 58 in profit
Strong operational efficiency at 36.8%
Keeps 22 of every $100 in revenue as profit
Growing faster than its price suggests
Attractively priced relative to earnings
Earnings expanding 22.6% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 58.1%
Revenue surging 35.1% year-over-year
Earnings expanding 58.4% YoY
Areas to Watch
Weak financial health signals
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 63.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : PAYC
The strongest argument for PAYC centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 22.4% and operating margin at 36.8%. PEG of 0.97 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.
Bear Case : PAYC
The primary concerns for PAYC are Piotroski F-Score, Altman Z-Score.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
PAYC profiles as a mature stock while TSM is a growth play — different risk/reward profiles.
TSM carries more volatility with a beta of 1.25 — 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 75/100), backed by strong 46.5% margins and 35.1% revenue growth. PAYC offers better value entry with a 68.5% margin of safety. 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.
Paycom Software, Inc.
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paycom Software, Inc., known simply as Paycom, is an American online payroll and human resource technology provider based in Oklahoma City, Oklahoma.
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 SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?