Capital One Financial Corporation (COF)vsWaters Corporation (WAT)
COF
Capital One Financial Corporation
$185.23
+0.32%
FINANCIAL SERVICES · Cap: $112.86B
WAT
Waters Corporation
$302.32
+0.13%
HEALTHCARE · Cap: $29.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Capital One Financial Corporation generates 936% more annual revenue ($32.78B vs $3.17B). WAT leads profitability with a 20.3% profit margin vs 7.5%. COF appears more attractively valued with a PEG of 0.19. COF earns a higher WallStSmart Score of 75/100 (B+).
COF
Strong Buy75
out of 100
Grade: B+
WAT
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-50.8%
Fair Value
$142.20
Current Price
$185.23
$43.03 premium
Margin of Safety
-349.9%
Fair Value
$73.17
Current Price
$302.32
$229.15 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 51.6% year-over-year
Large-cap with strong market position
Strong operational efficiency at 22.9%
Earnings expanding 22.2% YoY
Strong operational efficiency at 33.8%
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Keeps 20 of every $100 in revenue as profit
Areas to Watch
ROE of 2.4% — below average capital efficiency
7.5% margin — thin
Premium valuation, high expectations priced in
Moderate valuation
Earnings declined 3.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : COF
The strongest argument for COF centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 51.6% demonstrates continued momentum. PEG of 0.19 suggests the stock is reasonably priced for its growth.
Bull Case : WAT
The strongest argument for WAT centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 20.3% and operating margin at 33.8%. PEG of 1.25 suggests the stock is reasonably priced for its growth.
Bear Case : COF
The primary concerns for COF are Return on Equity, Profit Margin, P/E Ratio. A P/E of 54.0x leaves little room for execution misses.
Bear Case : WAT
The primary concerns for WAT are P/E Ratio, EPS Growth.
Key Dynamics to Monitor
COF profiles as a hypergrowth stock while WAT is a mature play — different risk/reward profiles.
WAT carries more volatility with a beta of 1.20 — expect wider price swings.
COF is growing revenue faster at 51.6% — sustainability is the question.
COF generates stronger free cash flow (6.7B), providing more financial flexibility.
Bottom Line
COF scores higher overall (75/100 vs 60/100) and 51.6% revenue growth. Both earn "Strong 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.
Capital One Financial Corporation
FINANCIAL SERVICES · CREDIT SERVICES · USA
Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States.
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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