WallStSmart

Laboratory Corporation of America Holdings (LH)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Laboratory Corporation of America Holdings generates 341% more annual revenue ($13.95B vs $3.17B). WAT leads profitability with a 20.3% profit margin vs 6.3%. LH appears more attractively valued with a PEG of 1.10. LH earns a higher WallStSmart Score of 63/100 (C+).

LH

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 5.5Value: 8.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.26

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

LHUndervalued (+13.2%)

Margin of Safety

+13.2%

Fair Value

$333.88

Current Price

$266.02

$67.86 discount

UndervaluedFair: $333.88Overvalued
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

LH1 strengths · Avg: 8.0/10
Price/BookValuation
2.5x8/10

Reasonable price relative to book value

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

LH2 concerns · Avg: 3.5/10
P/E RatioValuation
25.4x4/10

Moderate valuation

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

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 : LH

The strongest argument for LH centers on Price/Book. PEG of 1.10 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 : LH

The primary concerns for LH are P/E Ratio, Profit Margin.

Bear Case : WAT

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

Key Dynamics to Monitor

LH 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.

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

LH generates stronger free cash flow (490M), providing more financial flexibility.

Bottom Line

LH scores higher overall (63/100 vs 60/100). 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.

Laboratory Corporation of America Holdings

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Laboratory Corporation of America Holdings, more commonly known as Labcorp, is an American company headquartered in Burlington, North Carolina. It operates one of the largest clinical laboratory networks in the world, with a United States network of 36 primary laboratories.

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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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