Taiwan Semiconductor Manufacturing (TSM)vsYum! Brands Inc (YUM)
TSM
Taiwan Semiconductor Manufacturing
$347.75
+1.31%
TECHNOLOGY · Cap: $1.71T
YUM
Yum! Brands Inc
$159.16
-0.17%
CONSUMER CYCLICAL · Cap: $44.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 46273% more annual revenue ($3.81T vs $8.21B). TSM leads profitability with a 45.1% profit margin vs 19.0%. TSM appears more attractively valued with a PEG of 1.17. TSM earns a higher WallStSmart Score of 82/100 (A-).
TSM
Exceptional Buy82
out of 100
Grade: A-
YUM
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+20.3%
Fair Value
$483.91
Current Price
$347.75
$136.16 discount
Margin of Safety
+38.8%
Fair Value
$259.74
Current Price
$159.16
$100.58 discount
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
Strong operational efficiency at 31.9%
Earnings expanding 27.7% YoY
Areas to Watch
Premium valuation, high expectations priced in
Trading at 52.9x book value
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
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 : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth. Profitability is solid with margins at 19.0% and operating margin at 31.9%.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
TSM profiles as a growth stock while YUM is a mature play — different risk/reward profiles.
TSM carries more volatility with a beta of 1.28 — 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 59/100), backed by strong 45.1% margins and 20.5% revenue growth. YUM offers better value entry with a 38.8% margin of safety. 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 →Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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