SPS Commerce Inc (SPSC)vsTaiwan Semiconductor Manufacturing (TSM)
SPSC
SPS Commerce Inc
$73.39
+11.48%
TECHNOLOGY · Cap: $2.64B
TSM
Taiwan Semiconductor Manufacturing
$404.25
+0.23%
TECHNOLOGY · Cap: $2.09T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 574727% more annual revenue ($4.44T vs $772.49M). TSM leads profitability with a 49.9% profit margin vs 10.1%. TSM appears more attractively valued with a PEG of 0.91. TSM earns a higher WallStSmart Score of 86/100 (A).
SPSC
Hold49
out of 100
Grade: D+
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+71.5%
Fair Value
$240.12
Current Price
$73.39
$166.73 discount
Margin of Safety
+55.0%
Fair Value
$897.55
Current Price
$404.25
$493.30 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
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
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 63.9%
Premium valuation, high expectations priced in
Trading at 84.2x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SPSC
The strongest argument for SPSC centers on Debt/Equity, Altman Z-Score, Price/Book.
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 : SPSC
The primary concerns for SPSC are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
SPSC 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 36.0% — sustainability is the question.
TSM generates stronger free cash flow (287.4B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (86/100 vs 49/100), backed by strong 49.9% margins and 36.0% revenue growth. SPSC offers better value entry with a 71.5% margin of safety. 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.
SPS Commerce Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SPS Commerce, Inc. provides cloud-based supply chain management solutions globally. The company is headquartered in Minneapolis, Minnesota.
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 SOFTWARE - APPLICATION Stocks
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