WallStSmart

Sono-Tek Corp (SOTK)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 20096583% more annual revenue ($4.10T vs $20.42M). TSM leads profitability with a 46.5% profit margin vs 7.7%. TSM trades at a lower P/E of 33.7x. TSM earns a higher WallStSmart Score of 84/100 (A-).

SOTK

Avoid

34

out of 100

Grade: F

Growth: 4.7Profit: 5.5Value: 6.3Quality: 5.0

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

SOTKUndervalued (+31.6%)

Margin of Safety

+31.6%

Fair Value

$6.02

Current Price

$5.48

$0.54 discount

UndervaluedFair: $6.02Overvalued
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

SOTK0 strengths · Avg: 0/10

No standout strengths identified

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

SOTK4 concerns · Avg: 2.5/10
Market CapQuality
$73.68M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.7%3/10

7.7% margin — thin

P/E RatioValuation
46.9x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-3.6%2/10

Revenue declined 3.6%

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 : SOTK

SOTK has a balanced fundamental profile.

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 : SOTK

The primary concerns for SOTK are Market Cap, Profit Margin, P/E Ratio. A P/E of 46.9x leaves little room for execution misses.

Bear Case : TSM

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

Key Dynamics to Monitor

SOTK profiles as a value 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.

TSM is growing revenue faster at 35.1% — 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 34/100), backed by strong 46.5% margins and 35.1% revenue growth. SOTK offers better value entry with a 31.6% margin of safety. Both earn "Exceptional Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Sono-Tek Corp

TECHNOLOGY · SCIENTIFIC & TECHNICAL INSTRUMENTS · USA

Sono-Tek Corporation designs and manufactures ultrasonic coating systems for application to parts and components for the global microelectronics / electronics, alternative energy, medical, industrial, and research and development / other markets. The company is headquartered in Milton, New York.

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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