Richardson Electronics Ltd (RELL)vsTaiwan Semiconductor Manufacturing (TSM)
RELL
Richardson Electronics Ltd
$17.47
+2.52%
TECHNOLOGY · Cap: $257.60M
TSM
Taiwan Semiconductor Manufacturing
$433.24
-3.38%
TECHNOLOGY · Cap: $2.22T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 1942679% more annual revenue ($4.44T vs $228.56M). TSM leads profitability with a 49.9% profit margin vs 2.8%. TSM appears more attractively valued with a PEG of 0.79. TSM earns a higher WallStSmart Score of 86/100 (A).
RELL
Buy58
out of 100
Grade: C
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-50.6%
Fair Value
$9.56
Current Price
$17.47
$7.91 premium
Margin of Safety
+50.6%
Fair Value
$889.36
Current Price
$433.24
$456.12 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 238.3% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 27.6% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 60.3%
Revenue surging 36.0% year-over-year
Earnings expanding 77.4% YoY
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 2.4% — below average capital efficiency
Premium valuation, high expectations priced in
Trading at 88.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : RELL
The strongest argument for RELL centers on EPS Growth, Debt/Equity, Altman Z-Score. Revenue growth of 27.6% 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 : RELL
The primary concerns for RELL are PEG Ratio, P/E Ratio, Market Cap. Thin 2.8% margins leave little buffer for downturns.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
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.
Monitor ELECTRONIC COMPONENTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 58/100), backed by strong 49.9% margins and 36.0% revenue growth. 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.
Richardson Electronics Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
Richardson Electronics, Ltd. is engaged in microwave and power technologies, custom display solutions, and healthcare equipment businesses in North America, Asia Pacific, Europe, and Latin America. The company is headquartered in LaFox, 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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