Constellation Brands Inc Class A (STZ)vsWaters Corporation (WAT)
STZ
Constellation Brands Inc Class A
$148.21
-1.36%
CONSUMER DEFENSIVE · Cap: $25.88B
WAT
Waters Corporation
$355.13
+1.32%
HEALTHCARE · Cap: $34.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Constellation Brands Inc Class A generates 142% more annual revenue ($9.14B vs $3.77B). STZ leads profitability with a 18.5% profit margin vs 11.9%. WAT appears more attractively valued with a PEG of 1.52. STZ earns a higher WallStSmart Score of 56/100 (C).
STZ
Buy56
out of 100
Grade: C
WAT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for STZ.
Margin of Safety
-63.1%
Fair Value
$201.83
Current Price
$355.13
$153.30 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 23 in profit
Attractively priced relative to earnings
Strong operational efficiency at 26.7%
Revenue surging 91.5% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 11.3%
Expensive relative to growth rate
Trading at 8.3x book value
ROE of 5.2% — below average capital efficiency
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : STZ
The strongest argument for STZ centers on Return on Equity, P/E Ratio, Operating Margin. Profitability is solid with margins at 18.5% and operating margin at 26.7%.
Bull Case : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.5% demonstrates continued momentum.
Bear Case : STZ
The primary concerns for STZ are Altman Z-Score, Debt/Equity, PEG Ratio.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 44.6x leaves little room for execution misses.
Key Dynamics to Monitor
STZ profiles as a declining stock while WAT is a growth play — different risk/reward profiles.
WAT carries more volatility with a beta of 1.14 — expect wider price swings.
WAT is growing revenue faster at 91.5% — sustainability is the question.
STZ generates stronger free cash flow (344M), providing more financial flexibility.
Bottom Line
STZ scores higher overall (56/100 vs 52/100), backed by strong 18.5% 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.
Constellation Brands Inc Class A
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.
Visit Website →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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