WallStSmart

H2O America (HTO)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Waters Corporation generates 288% more annual revenue ($3.17B vs $816.28M). WAT leads profitability with a 20.3% profit margin vs 12.9%. WAT appears more attractively valued with a PEG of 1.34. WAT earns a higher WallStSmart Score of 60/100 (C).

HTO

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 6.0Quality: 5.0

WAT

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 5.7Quality: 6.8
Piotroski: 4/9Altman Z: 4.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTOUndervalued (+32.5%)

Margin of Safety

+32.5%

Fair Value

$76.99

Current Price

$57.60

$19.39 discount

UndervaluedFair: $76.99Overvalued

Intrinsic value data unavailable for WAT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

WAT4 strengths · Avg: 9.5/10
Operating MarginProfitability
33.8%10/10

Strong operational efficiency at 33.8%

Altman Z-ScoreHealth
4.9210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.3%9/10

Every $100 of equity generates 29 in profit

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

Areas to Watch

HTO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

PEG RatioValuation
2.512/10

Expensive relative to growth rate

Free Cash FlowQuality
$-49.23M2/10

Negative free cash flow — burning cash

WAT3 concerns · Avg: 3.3/10
P/E RatioValuation
28.6x4/10

Moderate valuation

Price/BookValuation
8.1x4/10

Trading at 8.1x book value

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : HTO

The strongest argument for HTO centers on Price/Book, Operating Margin.

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 1.34 suggests the stock is reasonably priced for its growth.

Bear Case : HTO

The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.

Bear Case : WAT

The primary concerns for WAT are P/E Ratio, Price/Book, EPS Growth.

Key Dynamics to Monitor

HTO profiles as a value 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.

HTO is growing revenue faster at 9.4% — sustainability is the question.

WAT generates stronger free cash flow (126M), providing more financial flexibility.

Bottom Line

WAT scores higher overall (60/100 vs 57/100), backed by strong 20.3% margins. HTO offers better value entry with a 32.5% margin of safety. Both earn "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.

H2O America

UTILITIES · UTILITIES - REGULATED WATER · USA

H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.

Waters Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

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

Want to dig deeper into these stocks?