WallStSmart

Medline Inc. Class A Common Stock (MDLN)vsEssential Utilities Inc (WTRG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Medline Inc. Class A Common Stock generates 1049% more annual revenue ($28.43B vs $2.47B). WTRG leads profitability with a 24.9% profit margin vs 4.1%. WTRG trades at a lower P/E of 17.3x. WTRG earns a higher WallStSmart Score of 60/100 (C+).

MDLN

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 5.0Value: 6.3Quality: 6.8
Piotroski: 4/9

WTRG

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 7.5Value: 6.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MDLNUndervalued (+68.8%)

Margin of Safety

+68.8%

Fair Value

$144.24

Current Price

$42.01

$102.23 discount

UndervaluedFair: $144.24Overvalued
WTRGUndervalued (+47.4%)

Margin of Safety

+47.4%

Fair Value

$71.13

Current Price

$37.54

$33.59 discount

UndervaluedFair: $71.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MDLN1 strengths · Avg: 10.0/10
EPS GrowthGrowth
1258.0%10/10

Earnings expanding 1258.0% YoY

WTRG5 strengths · Avg: 8.6/10
Operating MarginProfitability
32.4%10/10

Strong operational efficiency at 32.4%

Profit MarginProfitability
24.9%9/10

Keeps 25 of every $100 in revenue as profit

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

Areas to Watch

MDLN4 concerns · Avg: 3.0/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Profit MarginProfitability
4.1%3/10

4.1% margin — thin

Free Cash FlowQuality
$-113.00M2/10

Negative free cash flow — burning cash

WTRG4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.622/10

Expensive relative to growth rate

EPS GrowthGrowth
-30.0%2/10

Earnings declined 30.0%

Free Cash FlowQuality
$-240.78M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : MDLN

The strongest argument for MDLN centers on EPS Growth. Revenue growth of 14.8% demonstrates continued momentum.

Bull Case : WTRG

The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.

Bear Case : MDLN

The primary concerns for MDLN are P/E Ratio, Return on Equity, Profit Margin. Thin 4.1% margins leave little buffer for downturns.

Bear Case : WTRG

The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

MDLN profiles as a value stock while WTRG is a growth play — different risk/reward profiles.

WTRG is growing revenue faster at 15.7% — sustainability is the question.

MDLN generates stronger free cash flow (-113M), providing more financial flexibility.

Monitor MEDICAL INSTRUMENTS & SUPPLIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

WTRG scores higher overall (60/100 vs 52/100), backed by strong 24.9% margins and 15.7% revenue growth. MDLN offers better value entry with a 68.8% 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.

Medline Inc. Class A Common Stock

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Medline Inc. manufactures med-surg products serving the hospital, surgery centers, physician offices, post-acute facilities, and nursing home sites of care in the United States and Internationally. The company is headquartered in Northfield, Illinois.

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Essential Utilities Inc

UTILITIES · UTILITIES - REGULATED WATER · USA

Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.

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