Waters Corporation (WAT)vsYum! Brands Inc (YUM)
WAT
Waters Corporation
$302.32
+0.13%
HEALTHCARE · Cap: $29.66B
YUM
Yum! Brands Inc
$159.16
-0.17%
CONSUMER CYCLICAL · Cap: $44.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Yum! Brands Inc generates 160% more annual revenue ($8.21B vs $3.17B). WAT leads profitability with a 20.3% profit margin vs 19.0%. WAT appears more attractively valued with a PEG of 1.25. WAT earns a higher WallStSmart Score of 60/100 (C).
WAT
Buy60
out of 100
Grade: C
YUM
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-349.9%
Fair Value
$73.17
Current Price
$302.32
$229.15 premium
Margin of Safety
+38.8%
Fair Value
$259.74
Current Price
$159.16
$100.58 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Strong operational efficiency at 31.9%
Earnings expanding 27.7% YoY
Areas to Watch
Moderate valuation
Earnings declined 3.1%
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth. Profitability is solid with margins at 19.0% and operating margin at 31.9%.
Bear Case : WAT
The primary concerns for WAT are P/E Ratio, EPS Growth.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
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.
YUM generates stronger free cash flow (482M), providing more financial flexibility.
Monitor DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WAT scores higher overall (60/100 vs 59/100), backed by strong 20.3% margins. YUM offers better value entry with a 38.8% 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.
Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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