WallStSmart

Castle Biosciences Inc (CSTL)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Waters Corporation generates 820% more annual revenue ($3.17B vs $344.23M). WAT leads profitability with a 20.3% profit margin vs -7.0%. WAT earns a higher WallStSmart Score of 60/100 (C).

CSTL

Avoid

31

out of 100

Grade: F

Growth: 7.3Profit: 2.0Value: 5.0Quality: 8.5
Piotroski: 2/9Altman Z: 4.27

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

Intrinsic value data unavailable for CSTL.

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

CSTL4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
80.0%10/10

Revenue surging 80.0% year-over-year

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.2710/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

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

CSTL4 concerns · Avg: 2.5/10
Market CapQuality
$751.31M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-5.2%2/10

ROE of -5.2% — below average capital efficiency

EPS GrowthGrowth
-51.6%2/10

Earnings declined 51.6%

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 : CSTL

The strongest argument for CSTL centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 80.0% 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 : CSTL

The primary concerns for CSTL are Market Cap, Piotroski F-Score, Return on Equity.

Bear Case : WAT

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

Key Dynamics to Monitor

CSTL profiles as a hypergrowth stock while WAT is a mature play — different risk/reward profiles.

WAT carries more volatility with a beta of 1.20 — expect wider price swings.

CSTL is growing revenue faster at 80.0% — sustainability is the question.

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

Bottom Line

WAT scores higher overall (60/100 vs 31/100), backed by strong 20.3% margins. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Castle Biosciences Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Castle Biosciences Inc. is a pioneering company in the diagnostics sector, focused on transforming patient care through its innovative gene-expression profiling tests, particularly in skin cancer. Its leading product, DecisionDx®-Melanoma, plays a crucial role in the management of melanoma by providing vital insights into risk stratification and guiding treatment decisions based on gene expression analysis. Committed to advancing precision medicine, the company leverages its proprietary technology to develop additional assays that address significant clinical needs. With a strong emphasis on research and development and a promising pipeline, Castle Biosciences is well-positioned for sustainable growth while enhancing clinical outcomes and delivering value to shareholders in the dynamic oncology market.

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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