Vertex Pharmaceuticals Inc (VRTX)vsWaters Corporation (WAT)
VRTX
Vertex Pharmaceuticals Inc
$454.97
+1.42%
HEALTHCARE · Cap: $113.95B
WAT
Waters Corporation
$302.32
+0.13%
HEALTHCARE · Cap: $29.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Vertex Pharmaceuticals Inc generates 279% more annual revenue ($12.00B vs $3.17B). VRTX leads profitability with a 32.9% profit margin vs 20.3%. WAT appears more attractively valued with a PEG of 1.25. VRTX earns a higher WallStSmart Score of 66/100 (B-).
VRTX
Strong Buy66
out of 100
Grade: B-
WAT
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+36.5%
Fair Value
$716.04
Current Price
$454.97
$261.07 discount
Margin of Safety
-349.9%
Fair Value
$73.17
Current Price
$302.32
$229.15 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 39.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Conservative balance sheet, low leverage
Strong operational efficiency at 33.8%
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Keeps 20 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Moderate valuation
Earnings declined 3.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.
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 : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Bear Case : WAT
The primary concerns for WAT are P/E Ratio, EPS Growth.
Key Dynamics to Monitor
WAT carries more volatility with a beta of 1.20 — expect wider price swings.
VRTX is growing revenue faster at 9.5% — sustainability is the question.
VRTX generates stronger free cash flow (349M), providing more financial flexibility.
Monitor BIOTECHNOLOGY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
VRTX scores higher overall (66/100 vs 60/100), backed by strong 32.9% margins. Both earn "Strong 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.
Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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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