WallStSmart

Paylocity Holding Corporation (PCTY)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 250587% more annual revenue ($4.44T vs $1.77B). TSM leads profitability with a 49.9% profit margin vs 15.2%. TSM appears more attractively valued with a PEG of 0.79. TSM earns a higher WallStSmart Score of 86/100 (A).

PCTY

Strong Buy

65

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 7.3Quality: 6.0
Piotroski: 5/9Altman Z: 1.23

TSM

Exceptional Buy

86

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

PCTYUndervalued (+62.0%)

Margin of Safety

+62.0%

Fair Value

$283.03

Current Price

$141.66

$141.37 discount

UndervaluedFair: $283.03Overvalued
TSMUndervalued (+50.6%)

Margin of Safety

+50.6%

Fair Value

$889.36

Current Price

$433.24

$456.12 discount

UndervaluedFair: $889.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PCTY3 strengths · Avg: 8.7/10
Return on EquityProfitability
21.9%9/10

Every $100 of equity generates 22 in profit

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
27.6%8/10

Earnings expanding 27.6% YoY

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.22T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 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

PCTY2 concerns · Avg: 3.0/10
P/E RatioValuation
29.2x4/10

Moderate valuation

Altman Z-ScoreHealth
1.232/10

Distress zone — elevated risk

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

Premium valuation, high expectations priced in

Price/BookValuation
88.6x2/10

Trading at 88.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : PCTY

The strongest argument for PCTY centers on Return on Equity, Debt/Equity, EPS Growth. Profitability is solid with margins at 15.2% and operating margin at 19.1%. Revenue growth of 11.0% demonstrates continued momentum.

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 : PCTY

The primary concerns for PCTY are P/E Ratio, Altman Z-Score.

Bear Case : TSM

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

Key Dynamics to Monitor

PCTY 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 36.0% — sustainability is the question.

TSM generates stronger free cash flow (287.4B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (86/100 vs 65/100), backed by strong 49.9% margins and 36.0% revenue growth. PCTY offers better value entry with a 62.0% 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.

Paylocity Holding Corporation

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for midsize organizations in the United States. The company is headquartered in Schaumburg, Illinois.

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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