Quest Diagnostics Incorporated (DGX)vsWaters Corporation (WAT)
DGX
Quest Diagnostics Incorporated
$250.81
-0.40%
HEALTHCARE · Cap: $27.11B
WAT
Waters Corporation
$449.53
-2.85%
HEALTHCARE · Cap: $47.14B
Smart Verdict
WallStSmart Research — data-driven comparison
Quest Diagnostics Incorporated generates 155% more annual revenue ($11.84B vs $4.64B). DGX leads profitability with a 9.5% profit margin vs 3.6%. DGX appears more attractively valued with a PEG of 1.58. DGX earns a higher WallStSmart Score of 64/100 (C+).
DGX
Buy64
out of 100
Grade: C+
WAT
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-87.2%
Fair Value
$111.82
Current Price
$250.81
$138.99 premium
Margin of Safety
-44.6%
Fair Value
$227.71
Current Price
$449.53
$221.82 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 28.7% YoY
Revenue surging 113.4% year-over-year
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
ROE of 1.1% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DGX
The strongest argument for DGX centers on EPS Growth.
Bull Case : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score, Price/Book. Revenue growth of 113.4% demonstrates continued momentum.
Bear Case : DGX
The primary concerns for DGX are PEG Ratio.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Return on Equity, Profit Margin. A P/E of 121.5x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
DGX profiles as a value stock while WAT is a hypergrowth play — different risk/reward profiles.
WAT carries more volatility with a beta of 1.15 — expect wider price swings.
WAT is growing revenue faster at 113.4% — sustainability is the question.
DGX generates stronger free cash flow (574M), providing more financial flexibility.
Bottom Line
DGX scores higher overall (64/100 vs 43/100). 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.
Quest Diagnostics Incorporated
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Quest Diagnostics is an American clinical laboratory. A Fortune 500 company, Quest operates in the United States, Puerto Rico, Mexico, and Brazil. Quest also maintains collaborative agreements with various hospitals and clinics across the globe.
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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