WallStSmart

Taiwan Semiconductor Manufacturing (TSM)vsTuya Inc ADR (TUYA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 1275232% more annual revenue ($4.10T vs $321.79M). TSM leads profitability with a 46.5% profit margin vs 18.0%. TUYA trades at a lower P/E of 24.9x. TSM earns a higher WallStSmart Score of 84/100 (A-).

TSM

Exceptional Buy

84

out of 100

Grade: A-

Growth: 9.3Profit: 10.0Value: 6.7Quality: 9.0
Piotroski: 6/9Altman Z: 3.86

TUYA

Hold

47

out of 100

Grade: D+

Growth: 7.3Profit: 5.5Value: 7.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TSMUndervalued (+72.4%)

Margin of Safety

+72.4%

Fair Value

$1399.41

Current Price

$396.06

$1003.35 discount

UndervaluedFair: $1399.41Overvalued
TUYAUndervalued (+47.8%)

Margin of Safety

+47.8%

Fair Value

$4.14

Current Price

$2.30

$1.84 discount

UndervaluedFair: $4.14Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

TUYA2 strengths · Avg: 10.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
80.1%10/10

Earnings expanding 80.1% YoY

Areas to Watch

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

TUYA3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

Market CapQuality
$1.37B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : TUYA

The strongest argument for TUYA centers on Price/Book, EPS Growth. Profitability is solid with margins at 18.0% and operating margin at 9.5%.

Bear Case : TSM

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

Bear Case : TUYA

The primary concerns for TUYA are Revenue Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

TSM profiles as a growth stock while TUYA is a value 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 47/100), backed by strong 46.5% margins and 35.1% revenue growth. TUYA offers better value entry with a 47.8% 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.

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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Tuya Inc ADR

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · China

Tuya Inc. is in the cloud and application development business. The company is headquartered in Hangzhou, China with additional locations at Santa Clara, California; Gurugram, India; Dusseldorf, Germany; Antioquia, Colombia; Tokyo, Japan; Shenzhen, China; and Los Angeles, California.

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