WallStSmart

Taiwan Semiconductor Manufacturing (TSM)vsUbiquiti Networks Inc (UI)

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Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 135522% more annual revenue ($4.44T vs $3.27B). TSM leads profitability with a 49.9% profit margin vs 29.3%. TSM appears more attractively valued with a PEG of 0.79. TSM earns a higher WallStSmart Score of 86/100 (A).

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.85

UI

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 10.0Value: 4.0Quality: 8.0
Piotroski: 3/9Altman Z: 5.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TSMUndervalued (+50.6%)

Margin of Safety

+50.6%

Fair Value

$889.36

Current Price

$433.24

$456.12 discount

UndervaluedFair: $889.36Overvalued
UISignificantly Overvalued (-43.2%)

Margin of Safety

-43.2%

Fair Value

$394.06

Current Price

$553.55

$159.49 premium

UndervaluedFair: $394.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.22T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
49.9%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Revenue GrowthGrowth
36.0%10/10

Revenue surging 36.0% year-over-year

EPS GrowthGrowth
77.4%10/10

Earnings expanding 77.4% YoY

UI6 strengths · Avg: 9.5/10
Return on EquityProfitability
66.7%10/10

Every $100 of equity generates 67 in profit

Operating MarginProfitability
36.3%10/10

Strong operational efficiency at 36.3%

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.9710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
29.3%9/10

Keeps 29 of every $100 in revenue as profit

Revenue GrowthGrowth
23.5%8/10

Revenue surging 23.5% year-over-year

Areas to Watch

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
88.6x2/10

Trading at 88.6x book value

UI3 concerns · Avg: 3.0/10
P/E RatioValuation
33.9x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
27.9x2/10

Trading at 27.9x book value

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 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bull Case : UI

The strongest argument for UI centers on Return on Equity, Operating Margin, Debt/Equity. Profitability is solid with margins at 29.3% and operating margin at 36.3%. Revenue growth of 23.5% demonstrates continued momentum.

Bear Case : TSM

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

Bear Case : UI

The primary concerns for UI are P/E Ratio, Piotroski F-Score, Price/Book.

Key Dynamics to Monitor

UI carries more volatility with a beta of 1.32 — 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 (86/100 vs 63/100), backed by strong 49.9% margins and 36.0% revenue growth. Both earn "Exceptional Buy" and "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.

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 →

Ubiquiti Networks Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.

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