Taiwan Semiconductor Manufacturing (TSM)vsWestern Digital Corporation (WDC)
TSM
Taiwan Semiconductor Manufacturing
$329.24
-2.82%
TECHNOLOGY · Cap: $1.79T
WDC
Western Digital Corporation
$293.10
-7.52%
TECHNOLOGY · Cap: $100.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 35386% more annual revenue ($3.81T vs $10.73B). TSM leads profitability with a 45.1% profit margin vs 35.6%. WDC appears more attractively valued with a PEG of 0.69. TSM earns a higher WallStSmart Score of 82/100 (A-).
TSM
Exceptional Buy82
out of 100
Grade: A-
WDC
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+20.1%
Fair Value
$482.51
Current Price
$329.24
$153.27 discount
Margin of Safety
-311.2%
Fair Value
$66.57
Current Price
$293.10
$226.53 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Keeps 45 of every $100 in revenue as profit
Strong operational efficiency at 53.9%
Generating 388.2B in free cash flow
Safe zone — low bankruptcy risk
Every $100 of equity generates 41 in profit
Keeps 36 of every $100 in revenue as profit
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
Premium valuation, high expectations priced in
Trading at 50.3x book value
Moderate valuation
Trading at 14.0x book value
Revenue declined 41.0%
Earnings declined 95.9%
Comparative Analysis Report
WallStSmart ResearchBull 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 : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 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 : WDC
The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
TSM profiles as a growth stock while WDC is a declining play — different risk/reward profiles.
WDC carries more volatility with a beta of 1.85 — expect wider price swings.
TSM is growing revenue faster at 20.5% — sustainability is the question.
TSM generates stronger free cash flow (388.2B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (82/100 vs 55/100), backed by strong 45.1% margins and 20.5% 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 →Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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