WallStSmart

CareDx Inc (CDNA)vsWaters Corporation (WAT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Waters Corporation generates 1028% more annual revenue ($5.61B vs $497.40M). CDNA leads profitability with a 25.9% profit margin vs 1.8%. CDNA trades at a lower P/E of 36.9x. CDNA earns a higher WallStSmart Score of 60/100 (C).

CDNA

Buy

60

out of 100

Grade: C

Growth: 8.7Profit: 5.5Value: 6.3Quality: 6.5
Piotroski: 4/9Altman Z: 0.36

WAT

Hold

45

out of 100

Grade: D

Growth: 5.3Profit: 4.5Value: 2.7Quality: 6.8
Piotroski: 2/9Altman Z: 4.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CDNAUndervalued (+70.0%)

Margin of Safety

+70.0%

Fair Value

$65.83

Current Price

$79.81

$13.98 discount

UndervaluedFair: $65.83Overvalued
WATSignificantly Overvalued (-19.2%)

Margin of Safety

-19.2%

Fair Value

$276.15

Current Price

$462.20

$186.05 premium

UndervaluedFair: $276.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CDNA4 strengths · Avg: 9.8/10
Revenue GrowthGrowth
39.3%10/10

Revenue surging 39.3% year-over-year

EPS GrowthGrowth
1067.0%10/10

Earnings expanding 1067.0% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Profit MarginProfitability
25.9%9/10

Keeps 26 of every $100 in revenue as profit

WAT3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
120.9%10/10

Revenue surging 120.9% year-over-year

Altman Z-ScoreHealth
4.8510/10

Safe zone — low bankruptcy risk

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Areas to Watch

CDNA4 concerns · Avg: 3.0/10
P/E RatioValuation
36.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
9.0x4/10

Trading at 9.0x book value

Return on EquityProfitability
-2.6%2/10

ROE of -2.6% — below average capital efficiency

Altman Z-ScoreHealth
0.362/10

Distress zone — elevated risk

WAT4 concerns · Avg: 3.3/10
PEG RatioValuation
1.914/10

Expensive relative to growth rate

Return on EquityProfitability
0.6%3/10

ROE of 0.6% — below average capital efficiency

Profit MarginProfitability
1.8%3/10

1.8% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CDNA

The strongest argument for CDNA centers on Revenue Growth, EPS Growth, Debt/Equity. Profitability is solid with margins at 25.9% and operating margin at 8.5%. Revenue growth of 39.3% demonstrates continued momentum.

Bull Case : WAT

The strongest argument for WAT centers on Revenue Growth, Altman Z-Score, Price/Book. Revenue growth of 120.9% demonstrates continued momentum.

Bear Case : CDNA

The primary concerns for CDNA are P/E Ratio, Price/Book, Return on Equity.

Bear Case : WAT

The primary concerns for WAT are PEG Ratio, Return on Equity, Profit Margin. A P/E of 199.0x leaves little room for execution misses. Thin 1.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

CDNA profiles as a growth stock while WAT is a hypergrowth play — different risk/reward profiles.

CDNA carries more volatility with a beta of 2.38 — expect wider price swings.

WAT is growing revenue faster at 120.9% — sustainability is the question.

WAT generates stronger free cash flow (55M), providing more financial flexibility.

Bottom Line

CDNA scores higher overall (60/100 vs 45/100), backed by strong 25.9% margins and 39.3% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

CareDx Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

CareDx, Inc. discovers, develops and markets diagnostic solutions for transplant patients and caregivers globally. The company is headquartered in South San Francisco, California.

Waters Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.

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