Silicon Motion Technology (SIMO)vsTaiwan Semiconductor Manufacturing (TSM)
SIMO
Silicon Motion Technology
$258.70
-12.21%
TECHNOLOGY · Cap: $9.51B
TSM
Taiwan Semiconductor Manufacturing
$415.17
+0.68%
TECHNOLOGY · Cap: $2.18T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 386608% more annual revenue ($4.10T vs $1.06B). TSM leads profitability with a 46.5% profit margin vs 16.0%. SIMO appears more attractively valued with a PEG of 0.70. TSM earns a higher WallStSmart Score of 84/100 (A-).
SIMO
Strong Buy71
out of 100
Grade: B
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.2%
Fair Value
$87.91
Current Price
$258.70
$170.79 premium
Margin of Safety
+49.5%
Fair Value
$839.44
Current Price
$415.17
$424.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 105.5% year-over-year
Earnings expanding 238.7% YoY
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 58.1%
Revenue surging 35.1% year-over-year
Earnings expanding 58.4% YoY
Areas to Watch
Trading at 9.6x book value
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Trading at 63.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SIMO
The strongest argument for SIMO centers on Revenue Growth, EPS Growth, Altman Z-Score. Profitability is solid with margins at 16.0% and operating margin at 15.3%. Revenue growth of 105.5% 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 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.
Bear Case : SIMO
The primary concerns for SIMO are Price/Book, P/E Ratio, Free Cash Flow. A P/E of 55.5x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
SIMO carries more volatility with a beta of 1.73 — expect wider price swings.
SIMO is growing revenue faster at 105.5% — sustainability is the question.
TSM generates stronger free cash flow (377.1B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (84/100 vs 71/100), backed by strong 46.5% margins and 35.1% revenue growth. 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.
Silicon Motion Technology
TECHNOLOGY · SEMICONDUCTORS · USA
Silicon Motion Technology Corporation designs, develops and markets NAND flash controllers for solid state storage devices. The company is headquartered in Kowloon, Hong Kong.
Visit Website →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.
Visit Website →Compare with Other SEMICONDUCTORS Stocks
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