Toast Inc (TOST)vsTaiwan Semiconductor Manufacturing (TSM)
TOST
Toast Inc
$32.12
+0.56%
TECHNOLOGY · Cap: $19.62B
TSM
Taiwan Semiconductor Manufacturing
$433.24
-3.38%
TECHNOLOGY · Cap: $2.22T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 65163% more annual revenue ($4.44T vs $6.80B). TSM leads profitability with a 49.9% profit margin vs 7.1%. TOST appears more attractively valued with a PEG of 0.25. TSM earns a higher WallStSmart Score of 86/100 (A).
TOST
Strong Buy68
out of 100
Grade: B-
TSM
Exceptional Buy86
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.8%
Fair Value
$37.27
Current Price
$32.12
$5.15 discount
Margin of Safety
+50.6%
Fair Value
$889.36
Current Price
$433.24
$456.12 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 100.0% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 24 in profit
Revenue surging 23.1% 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
Trading at 9.4x book value
7.1% margin — thin
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 88.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : TOST
The strongest argument for TOST centers on PEG Ratio, EPS Growth, Altman Z-Score. Revenue growth of 23.1% demonstrates continued momentum. PEG of 0.25 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 : TOST
The primary concerns for TOST are Price/Book, Profit Margin, P/E Ratio. A P/E of 43.0x leaves little room for execution misses.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
TOST carries more volatility with a beta of 1.73 — 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 SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (86/100 vs 68/100), backed by strong 49.9% margins and 36.0% revenue growth. TOST offers better value entry with a 24.8% margin of safety. 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.
Toast Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Toast, Inc. operates a cloud-based technology platform for the restaurant industry in the United States and Ireland. The company is headquartered in Boston, Massachusetts.
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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