WallStSmart

Sanmina Corporation (SANM)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 36087% more annual revenue ($4.10T vs $11.34B). TSM leads profitability with a 46.5% profit margin vs 2.3%. SANM appears more attractively valued with a PEG of 0.97. TSM earns a higher WallStSmart Score of 84/100 (A-).

SANM

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 5.5Value: 6.7Quality: 5.8
Piotroski: 4/9Altman Z: 1.87

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

SANMUndervalued (+18.9%)

Margin of Safety

+18.9%

Fair Value

$184.12

Current Price

$217.82

$33.70 discount

UndervaluedFair: $184.12Overvalued
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

SANM3 strengths · Avg: 8.7/10
Revenue GrowthGrowth
102.3%10/10

Revenue surging 102.3% year-over-year

PEG RatioValuation
0.978/10

Growing faster than its price suggests

EPS GrowthGrowth
46.6%8/10

Earnings expanding 46.6% YoY

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

SANM3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.874/10

Grey zone — moderate risk

Profit MarginProfitability
2.3%3/10

2.3% margin — thin

P/E RatioValuation
45.6x2/10

Premium valuation, high expectations priced in

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 : SANM

The strongest argument for SANM centers on Revenue Growth, PEG Ratio, EPS Growth. Revenue growth of 102.3% demonstrates continued momentum. PEG of 0.97 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 : SANM

The primary concerns for SANM are Altman Z-Score, Profit Margin, P/E Ratio. A P/E of 45.6x leaves little room for execution misses. Thin 2.3% margins leave little buffer for downturns.

Bear Case : TSM

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

Key Dynamics to Monitor

SANM profiles as a hypergrowth 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.

SANM is growing revenue faster at 102.3% — 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 68/100), backed by strong 46.5% margins and 35.1% revenue growth. SANM offers better value entry with a 18.9% 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.

Sanmina Corporation

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Sanmina Corporation offers integrated solutions for manufacturing, components, products and repair, logistics and after-sales services globally. The company is headquartered in San Jose, California.

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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