WallStSmart

Taiwan Semiconductor Manufacturing (TSM)vsXunlei Ltd Adr (XNET)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 891224% more annual revenue ($4.10T vs $460.43M). XNET leads profitability with a 227.7% profit margin vs 46.5%. TSM appears more attractively valued with a PEG of 1.25. 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

XNET

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 7.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TSMUndervalued (+72.3%)

Margin of Safety

+72.3%

Fair Value

$1394.10

Current Price

$411.68

$982.42 discount

UndervaluedFair: $1394.10Overvalued
XNETUndervalued (+66.4%)

Margin of Safety

+66.4%

Fair Value

$17.32

Current Price

$6.39

$10.93 discount

UndervaluedFair: $17.32Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.18T10/10

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

XNET6 strengths · Avg: 10.0/10
P/E RatioValuation
0.4x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Return on EquityProfitability
124.0%10/10

Every $100 of equity generates 124 in profit

Profit MarginProfitability
227.7%10/10

Keeps 228 of every $100 in revenue as profit

Revenue GrowthGrowth
69.7%10/10

Revenue surging 69.7% year-over-year

EPS GrowthGrowth
11785.0%10/10

Earnings expanding 11785.0% YoY

Areas to Watch

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
36.0x4/10

Premium valuation, high expectations priced in

Price/BookValuation
62.9x2/10

Trading at 62.9x book value

XNET2 concerns · Avg: 2.5/10
Market CapQuality
$401.02M3/10

Smaller company, higher risk/reward

PEG RatioValuation
2.582/10

Expensive relative to growth rate

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 : XNET

The strongest argument for XNET centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 227.7% and operating margin at 5.0%. Revenue growth of 69.7% demonstrates continued momentum.

Bear Case : TSM

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

Bear Case : XNET

The primary concerns for XNET are Market Cap, PEG Ratio.

Key Dynamics to Monitor

TSM carries more volatility with a beta of 1.26 — expect wider price swings.

XNET is growing revenue faster at 69.7% — sustainability is the question.

TSM generates stronger free cash flow (377.1B), providing more financial flexibility.

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

Bottom Line

TSM scores higher overall (84/100 vs 76/100), backed by strong 46.5% margins and 35.1% revenue growth. XNET offers better value entry with a 66.4% margin of safety. 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.

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Xunlei Ltd Adr

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · China

Xunlei Limited, operates an Internet platform for digital media content in the People's Republic of China. The company is headquartered in Shenzhen, the People's Republic of China.

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