WallStSmart

Pagaya Technologies Ltd. (PGY)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 315255% more annual revenue ($4.10T vs $1.30B). TSM leads profitability with a 46.5% profit margin vs 6.3%. PGY appears more attractively valued with a PEG of 0.04. TSM earns a higher WallStSmart Score of 84/100 (A-).

PGY

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 6.5Value: 9.3Quality: 5.5
Piotroski: 4/9Altman Z: 0.54

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PGYUndervalued (+76.8%)

Margin of Safety

+76.8%

Fair Value

$55.51

Current Price

$12.91

$42.59 discount

UndervaluedFair: $55.51Overvalued
TSMUndervalued (+72.4%)

Margin of Safety

+72.4%

Fair Value

$1399.41

Current Price

$396.06

$1003.35 discount

UndervaluedFair: $1399.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PGY5 strengths · Avg: 8.4/10
PEG RatioValuation
0.0410/10

Growing faster than its price suggests

P/E RatioValuation
13.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.8%8/10

Strong operational efficiency at 23.8%

Revenue GrowthGrowth
19.8%8/10

19.8% revenue growth

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.04T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.2%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
46.5%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
58.1%10/10

Strong operational efficiency at 58.1%

Revenue GrowthGrowth
35.1%10/10

Revenue surging 35.1% year-over-year

EPS GrowthGrowth
58.4%10/10

Earnings expanding 58.4% YoY

Areas to Watch

PGY4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.07B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Debt/EquityHealth
1.713/10

Elevated debt levels

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
33.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
60.6x2/10

Trading at 60.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : PGY

The strongest argument for PGY centers on PEG Ratio, P/E Ratio, Price/Book. Revenue growth of 19.8% demonstrates continued momentum. PEG of 0.04 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 : PGY

The primary concerns for PGY are EPS Growth, Market Cap, Profit Margin. Debt-to-equity of 1.71 is elevated, increasing financial risk.

Bear Case : TSM

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

Key Dynamics to Monitor

PGY carries more volatility with a beta of 5.76 — 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.

Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (84/100 vs 65/100), backed by strong 46.5% margins and 35.1% revenue growth. PGY offers better value entry with a 76.8% margin of safety. Both earn "Exceptional Buy" and "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.

Pagaya Technologies Ltd.

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Pagaya Technologies Ltd. is a financial technology company in Israel, the United States and the Cayman Islands. The company is headquartered in Tel Aviv, Israel.

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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