Shoals Technologies Group Inc (SHLS)vsTaiwan Semiconductor Manufacturing (TSM)
SHLS
Shoals Technologies Group Inc
$8.90
+12.09%
TECHNOLOGY · Cap: $1.74B
TSM
Taiwan Semiconductor Manufacturing
$374.67
+7.64%
TECHNOLOGY · Cap: $2.07T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 829082% more annual revenue ($4.44T vs $535.53M). TSM leads profitability with a 49.9% profit margin vs 6.3%. SHLS appears more attractively valued with a PEG of 0.93. TSM earns a higher WallStSmart Score of 84/100 (A-).
SHLS
Buy63
out of 100
Grade: C+
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+47.7%
Fair Value
$18.72
Current Price
$8.90
$9.82 discount
Margin of Safety
+56.3%
Fair Value
$897.55
Current Price
$374.67
$522.88 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 74.9% year-over-year
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 21.0% YoY
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
Smaller company, higher risk/reward
ROE of 5.8% — below average capital efficiency
6.3% margin — thin
Premium valuation, high expectations priced in
Moderate valuation
Trading at 85.2x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SHLS
The strongest argument for SHLS centers on Revenue Growth, PEG Ratio, Price/Book. Revenue growth of 74.9% demonstrates continued momentum. PEG of 0.93 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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.
Bear Case : SHLS
The primary concerns for SHLS are Market Cap, Return on Equity, Profit Margin. A P/E of 47.2x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
SHLS profiles as a hypergrowth stock while TSM is a growth play — different risk/reward profiles.
SHLS carries more volatility with a beta of 1.90 — expect wider price swings.
SHLS is growing revenue faster at 74.9% — sustainability is the question.
TSM generates stronger free cash flow (287.4B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (84/100 vs 63/100), backed by strong 49.9% margins and 36.0% revenue growth. SHLS offers better value entry with a 47.7% margin of safety. 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.
Shoals Technologies Group Inc
TECHNOLOGY · SOLAR · USA
Shoals Technologies Group, Inc. provides Electric Balance System (EBOS) solutions for solar energy projects in the United States. The company is headquartered in Portland, Tennessee.
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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