WallStSmart

Illumina Inc (ILMN)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illumina Inc generates 37% more annual revenue ($4.34B vs $3.17B). WAT leads profitability with a 20.3% profit margin vs 19.6%. WAT appears more attractively valued with a PEG of 1.25. ILMN earns a higher WallStSmart Score of 64/100 (C+).

ILMN

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 10.0Quality: 5.3
Piotroski: 5/9Altman Z: 1.62

WAT

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 7.3Quality: 6.8
Piotroski: 4/9Altman Z: 4.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ILMNUndervalued (+54.4%)

Margin of Safety

+54.4%

Fair Value

$255.06

Current Price

$126.20

$128.86 discount

UndervaluedFair: $255.06Overvalued
WATSignificantly Overvalued (-349.9%)

Margin of Safety

-349.9%

Fair Value

$73.17

Current Price

$302.32

$229.15 premium

UndervaluedFair: $73.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ILMN2 strengths · Avg: 10.0/10
Return on EquityProfitability
33.4%10/10

Every $100 of equity generates 33 in profit

EPS GrowthGrowth
86.4%10/10

Earnings expanding 86.4% YoY

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

ILMN2 concerns · Avg: 4.0/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.624/10

Distress zone — elevated risk

WAT2 concerns · Avg: 3.0/10
P/E RatioValuation
28.1x4/10

Moderate valuation

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : ILMN

The strongest argument for ILMN centers on Return on Equity, EPS Growth. Profitability is solid with margins at 19.6% and operating margin at 19.7%.

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 : ILMN

The primary concerns for ILMN are PEG Ratio, Altman Z-Score.

Bear Case : WAT

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

Key Dynamics to Monitor

ILMN profiles as a value stock while WAT is a mature play — different risk/reward profiles.

ILMN carries more volatility with a beta of 1.50 — expect wider price swings.

WAT is growing revenue faster at 6.8% — sustainability is the question.

ILMN generates stronger free cash flow (267M), providing more financial flexibility.

Bottom Line

ILMN scores higher overall (64/100 vs 60/100), backed by strong 19.6% margins. 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.

Illumina Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Illumina, Inc. is an American company. Incorporated on April 1, 1998, Illumina develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. The company provides a line of products and services that serves the sequencing, genotyping and gene expression, and proteomics markets. Its headquarters are located in San Diego, California.

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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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