WallStSmart

Qualcomm Incorporated (QCOM)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 9125% more annual revenue ($4.10T vs $44.49B). TSM leads profitability with a 46.5% profit margin vs 22.3%. QCOM appears more attractively valued with a PEG of 0.76. TSM earns a higher WallStSmart Score of 84/100 (A-).

QCOM

Strong Buy

72

out of 100

Grade: B

Growth: 5.3Profit: 8.5Value: 7.3Quality: 7.5
Piotroski: 4/9Altman Z: 3.17

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

QCOMUndervalued (+15.3%)

Margin of Safety

+15.3%

Fair Value

$220.25

Current Price

$192.57

$27.68 discount

UndervaluedFair: $220.25Overvalued
TSMUndervalued (+72.4%)

Margin of Safety

+72.4%

Fair Value

$1396.69

Current Price

$397.67

$999.02 discount

UndervaluedFair: $1396.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

QCOM6 strengths · Avg: 9.3/10
Return on EquityProfitability
36.1%10/10

Every $100 of equity generates 36 in profit

EPS GrowthGrowth
173.0%10/10

Earnings expanding 173.0% YoY

Altman Z-ScoreHealth
3.1710/10

Safe zone — low bankruptcy risk

Market CapQuality
$177.47B9/10

Large-cap with strong market position

Profit MarginProfitability
22.3%9/10

Keeps 22 of every $100 in revenue as profit

PEG RatioValuation
0.768/10

Growing faster than its price suggests

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

QCOM2 concerns · Avg: 3.0/10
Price/BookValuation
9.0x4/10

Trading at 9.0x book value

Revenue GrowthGrowth
-3.5%2/10

Revenue declined 3.5%

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

Premium valuation, high expectations priced in

Price/BookValuation
60.8x2/10

Trading at 60.8x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : QCOM

The strongest argument for QCOM centers on Return on Equity, EPS Growth, Altman Z-Score. Profitability is solid with margins at 22.3% and operating margin at 22.1%. 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.

Bear Case : QCOM

The primary concerns for QCOM are Price/Book, Revenue Growth.

Bear Case : TSM

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

Key Dynamics to Monitor

QCOM profiles as a declining stock while TSM is a growth play — different risk/reward profiles.

QCOM carries more volatility with a beta of 1.49 — 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 72/100), backed by strong 46.5% margins and 35.1% revenue growth. QCOM offers better value entry with a 15.3% 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.

Qualcomm Incorporated

TECHNOLOGY · SEMICONDUCTORS · USA

Qualcomm is an American multinational corporation headquartered in San Diego, California, and incorporated in Delaware. It creates semiconductors, software, and services related to wireless technology. It owns patents critical to the 5G, 4G, CDMA2000, TD-SCDMA and WCDMA mobile communications standards.

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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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