WallStSmart

Charles River Laboratories (CRL)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Charles River Laboratories generates 7% more annual revenue ($4.02B vs $3.77B). WAT leads profitability with a 11.9% profit margin vs -3.6%. CRL appears more attractively valued with a PEG of 0.13. WAT earns a higher WallStSmart Score of 52/100 (C-).

CRL

Hold

39

out of 100

Grade: F

Growth: 2.7Profit: 3.5Value: 7.7Quality: 4.8
Piotroski: 3/9Altman Z: 1.68

WAT

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 3.3Quality: 6.8
Piotroski: 4/9Altman Z: 4.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRLUndervalued (+21.0%)

Margin of Safety

+21.0%

Fair Value

$210.15

Current Price

$177.62

$32.53 discount

UndervaluedFair: $210.15Overvalued
WATSignificantly Overvalued (-63.1%)

Margin of Safety

-63.1%

Fair Value

$201.83

Current Price

$355.13

$153.30 premium

UndervaluedFair: $201.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRL2 strengths · Avg: 9.0/10
PEG RatioValuation
0.1310/10

Growing faster than its price suggests

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

WAT2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
91.5%10/10

Revenue surging 91.5% year-over-year

Altman Z-ScoreHealth
4.9210/10

Safe zone — low bankruptcy risk

Areas to Watch

CRL4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-4.2%2/10

ROE of -4.2% — below average capital efficiency

WAT4 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Price/BookValuation
8.3x4/10

Trading at 8.3x book value

Return on EquityProfitability
5.2%3/10

ROE of 5.2% — below average capital efficiency

P/E RatioValuation
44.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CRL

The strongest argument for CRL centers on PEG Ratio, Price/Book. PEG of 0.13 suggests the stock is reasonably priced for its growth.

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 : CRL

The primary concerns for CRL are Altman Z-Score, Operating Margin, Piotroski F-Score.

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

CRL profiles as a turnaround stock while WAT is a growth play — different risk/reward profiles.

CRL carries more volatility with a beta of 1.45 — expect wider price swings.

WAT is growing revenue faster at 91.5% — sustainability is the question.

CRL generates stronger free cash flow (-15M), providing more financial flexibility.

Bottom Line

WAT scores higher overall (52/100 vs 39/100) and 91.5% revenue growth. CRL offers better value entry with a 21.0% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Charles River Laboratories

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Charles River Laboratories International, Inc., is an American pharmaceutical company specializing in a variety of preclinical and clinical laboratory, gene therapy and cell therapy services for the Pharmaceutical, Medical device and Biotechnology industries. It also supplies assorted biomedical products and outsourcing services for research and development in the pharmaceutical industry and offer support in the fields of basic research, drug discovery, safety and efficacy, clinical support, and manufacturing.

Waters Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.

Want to dig deeper into these stocks?