Financial Analysis: Waters Corporation (WAT) and The Competition

Waters Corporation (NYSE: WAT) is one of 82 publicly-traded companies in the “Advanced Medical Equipment & Technology” industry, but how does it contrast to its rivals? We will compare Waters Corporation to related businesses based on the strength of its risk, institutional ownership, dividends, valuation, analyst recommendations, earnings and profitability.

Profitability



This table compares Waters Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Waters Corporation 24.34% 23.61% 11.84%
Waters Corporation Competitors -328.60% -36.03% -12.66%

Risk and Volatility

Waters Corporation has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Waters Corporation’s rivals have a beta of 0.89, suggesting that their average stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Waters Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waters Corporation 2 8 6 0 2.25
Waters Corporation Competitors 263 1836 3294 105 2.59

Waters Corporation presently has a consensus price target of $189.15, indicating a potential downside of 2.81%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 7.27%. Given Waters Corporation’s higher probable upside, analysts plainly believe Waters Corporation is more favorable than its rivals.

Earnings and Valuation

This table compares Waters Corporation and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Waters Corporation $2.21 billion $766.04 million 28.71
Waters Corporation Competitors $2.06 billion $438.96 million -75.15

Waters Corporation has higher revenue and earnings than its rivals. Waters Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

91.0% of Waters Corporation shares are held by institutional investors. Comparatively, 51.0% of shares of all “Advanced Medical Equipment & Technology” companies are held by institutional investors. 5.1% of Waters Corporation shares are held by company insiders. Comparatively, 18.6% of shares of all “Advanced Medical Equipment & Technology” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Waters Corporation beats its rivals on 8 of the 13 factors compared.

Waters Corporation Company Profile

Waters Corporation is an analytical instrument manufacturer. The Company operates through two segments: Waters and TA. It designs, manufactures, sells and services high performance liquid chromatography (HPLC), ultra performance liquid chromatography (UPLC and together with HPLC, referred to as LC) and mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products and post-warranty service plans. It also designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments through its TA product line. It is also a developer and supplier of software-based products that interface with the Company’s instruments, as well as other suppliers’ instruments. Its LC and LC-MS instruments are utilized in a range of industries to detect, identify, monitor and measure the chemical, physical and biological composition of materials, and to purify a range of compounds.

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