WallStSmart

Taiwan Semiconductor Manufacturing (TSM)vsVirnetX Holding Corp Common Stock (VHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 2533273591% more annual revenue ($4.10T vs $162,000). TSM leads profitability with a 46.5% profit margin vs 0.0%. VHC appears more attractively valued with a PEG of 0.24. 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

VHC

Hold

38

out of 100

Grade: F

Growth: 8.0Profit: 2.5Value: 8.3Quality: 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
VHCUndervalued (+37.8%)

Margin of Safety

+37.8%

Fair Value

$28.59

Current Price

$13.38

$15.21 discount

UndervaluedFair: $28.59Overvalued

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

VHC3 strengths · Avg: 9.3/10
PEG RatioValuation
0.2410/10

Growing faster than its price suggests

Revenue GrowthGrowth
4700.0%10/10

Revenue surging 4700.0% year-over-year

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

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

VHC4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$60.44M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Return on EquityProfitability
-58.7%2/10

ROE of -58.7% — 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 : VHC

The strongest argument for VHC centers on PEG Ratio, Revenue Growth, Price/Book. Revenue growth of 4700.0% demonstrates continued momentum. PEG of 0.24 suggests the stock is reasonably priced for its growth.

Bear Case : TSM

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

Bear Case : VHC

The primary concerns for VHC are EPS Growth, Market Cap, Profit Margin.

Key Dynamics to Monitor

TSM profiles as a growth stock while VHC is a hypergrowth play — different risk/reward profiles.

VHC carries more volatility with a beta of 2.27 — expect wider price swings.

VHC is growing revenue faster at 4700.0% — 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 38/100), backed by strong 46.5% margins and 35.1% revenue growth. VHC offers better value entry with a 37.8% 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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VirnetX Holding Corp Common Stock

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

VirnetX Holding Corporation, through its subsidiary VirnetX, Inc., is an Internet security software and technology company primarily in the United States. The company is headquartered in Zephyr Cove, Nevada.

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