WallStSmart

SolarEdge Technologies Inc (SEDG)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 321490% more annual revenue ($3.81T vs $1.18B). TSM leads profitability with a 45.1% profit margin vs -34.2%. TSM appears more attractively valued with a PEG of 1.16. TSM earns a higher WallStSmart Score of 82/100 (A-).

SEDG

Hold

45

out of 100

Grade: D

Growth: 7.3Profit: 2.0Value: 4.0Quality: 5.8
Piotroski: 6/9Altman Z: 0.17

TSM

Exceptional Buy

82

out of 100

Grade: A-

Growth: 8.7Profit: 10.0Value: 6.0Quality: 9.0
Piotroski: 6/9Altman Z: 3.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for SEDG.

TSMUndervalued (+20.4%)

Margin of Safety

+20.4%

Fair Value

$484.85

Current Price

$326.74

$158.11 discount

UndervaluedFair: $484.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SEDG2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
70.9%10/10

Revenue surging 70.9% year-over-year

EPS GrowthGrowth
660.0%10/10

Earnings expanding 660.0% YoY

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$1.69T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
53.9%10/10

Strong operational efficiency at 53.9%

Free Cash FlowQuality
$388.17B10/10

Generating 388.2B in free cash flow

Altman Z-ScoreHealth
3.8610/10

Safe zone — low bankruptcy risk

Areas to Watch

SEDG4 concerns · Avg: 1.8/10
PEG RatioValuation
4.612/10

Expensive relative to growth rate

Return on EquityProfitability
-74.7%2/10

ROE of -74.7% — below average capital efficiency

Altman Z-ScoreHealth
0.172/10

Distress zone — elevated risk

Profit MarginProfitability
-34.2%1/10

Currently unprofitable

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
50.0x2/10

Trading at 50.0x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : SEDG

The strongest argument for SEDG centers on Revenue Growth, EPS Growth. Revenue growth of 70.9% 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 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.

Bear Case : SEDG

The primary concerns for SEDG are PEG Ratio, Return on Equity, Altman Z-Score.

Bear Case : TSM

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

Key Dynamics to Monitor

SEDG profiles as a hypergrowth stock while TSM is a growth play — different risk/reward profiles.

SEDG carries more volatility with a beta of 1.64 — expect wider price swings.

SEDG is growing revenue faster at 70.9% — 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 45/100), backed by strong 45.1% margins and 20.5% revenue growth. Both earn "Exceptional Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

SolarEdge Technologies Inc

TECHNOLOGY · SOLAR · USA

SolarEdge Technologies, Inc. designs, develops and sells optimized direct current (DC) inverter systems for solar photovoltaic (PV) installations worldwide. The company is headquartered in Herzliya, 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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