WallStSmart

Taiwan Semiconductor Manufacturing (TSM)vsVertiv Holdings Co (VRT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 37135% more annual revenue ($3.81T vs $10.23B). TSM leads profitability with a 45.1% profit margin vs 13.0%. TSM appears more attractively valued with a PEG of 1.17. TSM earns a higher WallStSmart Score of 82/100 (A-).

TSM

Exceptional Buy

82

out of 100

Grade: A-

Growth: 8.7Profit: 10.0Value: 9.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.86

VRT

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.7Quality: 6.3
Piotroski: 4/9Altman Z: 2.25
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TSMUndervalued (+20.4%)

Margin of Safety

+20.4%

Fair Value

$484.85

Current Price

$326.74

$158.11 discount

UndervaluedFair: $484.85Overvalued
VRTSignificantly Overvalued (-55.7%)

Margin of Safety

-55.7%

Fair Value

$159.59

Current Price

$251.07

$91.48 premium

UndervaluedFair: $159.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$1.80T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.1%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
53.9%10/10

Strong operational efficiency at 53.9%

Free Cash FlowQuality
$388.17B10/10

Generating 388.2B in free cash flow

Altman Z-ScoreHealth
3.8610/10

Safe zone — low bankruptcy risk

VRT4 strengths · Avg: 8.8/10
Return on EquityProfitability
41.8%10/10

Every $100 of equity generates 42 in profit

Market CapQuality
$103.64B9/10

Large-cap with strong market position

Operating MarginProfitability
21.2%8/10

Strong operational efficiency at 21.2%

Revenue GrowthGrowth
22.7%8/10

Revenue surging 22.7% year-over-year

Areas to Watch

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
33.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
50.0x2/10

Trading at 50.0x book value

VRT4 concerns · Avg: 3.0/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

EPS GrowthGrowth
2.0%4/10

2.0% earnings growth

P/E RatioValuation
79.4x2/10

Premium valuation, high expectations priced in

Price/BookValuation
24.4x2/10

Trading at 24.4x 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 45.1% and operating margin at 53.9%. Revenue growth of 20.5% demonstrates continued momentum.

Bull Case : VRT

The strongest argument for VRT centers on Return on Equity, Market Cap, Operating Margin. Revenue growth of 22.7% demonstrates continued momentum.

Bear Case : TSM

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

Bear Case : VRT

The primary concerns for VRT are PEG Ratio, EPS Growth, P/E Ratio. A P/E of 79.4x leaves little room for execution misses.

Key Dynamics to Monitor

VRT carries more volatility with a beta of 2.08 — expect wider price swings.

VRT is growing revenue faster at 22.7% — sustainability is the question.

TSM generates stronger free cash flow (388.2B), providing more financial flexibility.

Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TSM scores higher overall (82/100 vs 67/100), backed by strong 45.1% margins and 20.5% revenue growth. 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.

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 →

Vertiv Holdings Co

INDUSTRIALS · ELECTRICAL EQUIPMENT & PARTS · USA

Vertiv Holdings Co designs, manufactures and services critical digital infrastructure technologies and lifecycle services for data centers, communication networks, and commercial and industrial environments in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in Columbus, Ohio.

Want to dig deeper into these stocks?