WallStSmart

Castle Biosciences Inc (CSTL)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Waters Corporation generates 995% more annual revenue ($3.77B vs $344.23M). WAT leads profitability with a 11.9% profit margin vs -7.0%. WAT earns a higher WallStSmart Score of 52/100 (C-).

CSTL

Avoid

33

out of 100

Grade: F

Growth: 5.3Profit: 2.0Value: 6.7Quality: 8.5
Piotroski: 2/9Altman Z: 4.27

WAT

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 3.3Quality: 6.8
Piotroski: 4/9Altman Z: 4.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CSTLUndervalued (+65.9%)

Margin of Safety

+65.9%

Fair Value

$94.72

Current Price

$19.83

$74.89 discount

UndervaluedFair: $94.72Overvalued
WATSignificantly Overvalued (-63.1%)

Margin of Safety

-63.1%

Fair Value

$201.83

Current Price

$355.13

$153.30 premium

UndervaluedFair: $201.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CSTL3 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.2710/10

Safe zone — low bankruptcy risk

WAT2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
91.5%10/10

Revenue surging 91.5% year-over-year

Altman Z-ScoreHealth
4.9210/10

Safe zone — low bankruptcy risk

Areas to Watch

CSTL4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Market CapQuality
$583.55M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-5.2%2/10

ROE of -5.2% — below average capital efficiency

WAT4 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Price/BookValuation
8.3x4/10

Trading at 8.3x book value

Return on EquityProfitability
5.2%3/10

ROE of 5.2% — below average capital efficiency

P/E RatioValuation
44.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CSTL

The strongest argument for CSTL centers on Price/Book, Debt/Equity, Altman Z-Score.

Bull Case : WAT

The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.5% demonstrates continued momentum.

Bear Case : CSTL

The primary concerns for CSTL are Revenue Growth, Market Cap, Piotroski F-Score.

Bear Case : WAT

The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 44.6x leaves little room for execution misses.

Key Dynamics to Monitor

CSTL profiles as a turnaround stock while WAT is a growth play — different risk/reward profiles.

WAT carries more volatility with a beta of 1.14 — expect wider price swings.

WAT is growing revenue faster at 91.5% — sustainability is the question.

CSTL generates stronger free cash flow (-35M), providing more financial flexibility.

Bottom Line

WAT scores higher overall (52/100 vs 33/100) and 91.5% revenue growth. CSTL offers better value entry with a 65.9% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Castle Biosciences Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Castle Biosciences Inc. is a cutting-edge diagnostics company dedicated to transforming patient care through its innovative gene-expression profiling tests, particularly in the realm of skin cancer. Its flagship product, DecisionDx®-Melanoma, is instrumental in the management of melanoma, providing critical insights into patient risk stratification and treatment decision-making. With a robust commitment to precision medicine, Castle is actively expanding its portfolio of assays to address unmet clinical needs. Bolstered by a strong research and development focus and an ambitious pipeline, the company is strategically positioned for sustainable growth while enhancing clinical outcomes and delivering significant value to its shareholders in the evolving oncology marketplace.

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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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