WallStSmart

Veracyte Inc (VCYT)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Waters Corporation generates 512% more annual revenue ($3.17B vs $517.14M). WAT leads profitability with a 20.3% profit margin vs 12.8%. WAT trades at a lower P/E of 28.1x. WAT earns a higher WallStSmart Score of 60/100 (C).

VCYT

Buy

59

out of 100

Grade: C

Growth: 8.0Profit: 5.5Value: 7.0Quality: 9.0
Piotroski: 4/9Altman Z: 6.05

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

VCYTUndervalued (+3.9%)

Margin of Safety

+3.9%

Fair Value

$37.44

Current Price

$32.79

$4.65 discount

UndervaluedFair: $37.44Overvalued
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

VCYT4 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.0510/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
18.5%8/10

18.5% revenue growth

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

VCYT2 concerns · Avg: 2.5/10
Return on EquityProfitability
5.3%3/10

ROE of 5.3% — below average capital efficiency

P/E RatioValuation
41.2x2/10

Premium valuation, high expectations priced in

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 : VCYT

The strongest argument for VCYT centers on Debt/Equity, Altman Z-Score, Price/Book. Revenue growth of 18.5% demonstrates continued momentum.

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 : VCYT

The primary concerns for VCYT are Return on Equity, P/E Ratio. A P/E of 41.2x leaves little room for execution misses.

Bear Case : WAT

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

Key Dynamics to Monitor

VCYT profiles as a growth stock while WAT is a mature play — different risk/reward profiles.

VCYT carries more volatility with a beta of 1.96 — expect wider price swings.

VCYT is growing revenue faster at 18.5% — sustainability is the question.

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

Bottom Line

WAT scores higher overall (60/100 vs 59/100), backed by strong 20.3% 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.

Veracyte Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Veracyte, Inc. is a genomic diagnostics company in the United States and internationally. The company is headquartered in South San Francisco, California.

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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