PayPal Holdings Inc (PYPL)vsTaiwan Semiconductor Manufacturing (TSM)
PYPL
PayPal Holdings Inc
$44.85
+1.45%
FINANCIAL SERVICES · Cap: $41.37B
TSM
Taiwan Semiconductor Manufacturing
$347.75
+1.31%
TECHNOLOGY · Cap: $1.71T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 11383% more annual revenue ($3.81T vs $33.17B). TSM leads profitability with a 45.1% profit margin vs 15.8%. PYPL appears more attractively valued with a PEG of 0.69. TSM earns a higher WallStSmart Score of 82/100 (A-).
PYPL
Strong Buy78
out of 100
Grade: B+
TSM
Exceptional Buy82
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.3%
Fair Value
$253.19
Current Price
$44.85
$208.34 discount
Margin of Safety
+20.3%
Fair Value
$483.91
Current Price
$347.75
$136.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 26 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 39.4% YoY
Generating 2.2B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 45 of every $100 in revenue as profit
Strong operational efficiency at 53.9%
Generating 388.2B in free cash flow
Safe zone — low bankruptcy risk
Areas to Watch
3.7% revenue growth
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 52.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : PYPL
The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. Profitability is solid with margins at 15.8% and operating margin at 17.5%. PEG of 0.69 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 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.
Bear Case : PYPL
The primary concerns for PYPL are Revenue Growth, Altman Z-Score.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
PYPL profiles as a value stock while TSM is a growth play — different risk/reward profiles.
PYPL carries more volatility with a beta of 1.46 — expect wider price swings.
TSM is growing revenue faster at 20.5% — sustainability is the question.
TSM generates stronger free cash flow (388.2B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (82/100 vs 78/100), backed by strong 45.1% margins and 20.5% revenue growth. PYPL offers better value entry with a 82.3% 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.
PayPal Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.
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 CREDIT SERVICES Stocks
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