STMicroelectronics NV ADR (STM)vsTaiwan Semiconductor Manufacturing (TSM)
STM
STMicroelectronics NV ADR
$53.05
+9.70%
TECHNOLOGY · Cap: $58.67B
TSM
Taiwan Semiconductor Manufacturing
$374.67
+7.59%
TECHNOLOGY · Cap: $2.07T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 35774% more annual revenue ($4.44T vs $12.38B). TSM leads profitability with a 49.9% profit margin vs 1.2%. STM appears more attractively valued with a PEG of 0.47. TSM earns a higher WallStSmart Score of 84/100 (A-).
STM
Hold40
out of 100
Grade: D
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for STM.
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
Growing faster than its price suggests
Safe zone — low bankruptcy risk
Large-cap with strong market position
Conservative balance sheet, low leverage
Reasonable price relative to book value
Revenue surging 23.0% year-over-year
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
ROE of 2.6% — below average capital efficiency
1.2% margin — thin
Operating margin of 3.6%
Premium valuation, high expectations priced in
Moderate valuation
Trading at 85.2x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : STM
The strongest argument for STM centers on PEG Ratio, Altman Z-Score, Market Cap. Revenue growth of 23.0% demonstrates continued momentum. PEG of 0.47 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 : STM
The primary concerns for STM are Return on Equity, Profit Margin, Operating Margin. A P/E of 411.1x leaves little room for execution misses. Thin 1.2% margins leave little buffer for downturns.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
STM carries more volatility with a beta of 1.56 — 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.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (84/100 vs 40/100), backed by strong 49.9% margins and 36.0% 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.
STMicroelectronics NV ADR
TECHNOLOGY · SEMICONDUCTORS · USA
STMicroelectronics NV designs, develops, manufactures and markets semiconductor products in Europe, the Middle East, Africa, the Americas and Asia Pacific. The company is headquartered in Geneva, Switzerland.
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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