WallStSmart

HCA Holdings Inc (HCA)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HCA Holdings Inc generates 2288% more annual revenue ($75.60B vs $3.17B). WAT leads profitability with a 20.3% profit margin vs 9.0%. WAT appears more attractively valued with a PEG of 1.25. HCA earns a higher WallStSmart Score of 69/100 (B-).

HCA

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 10.0Quality: 6.0
Piotroski: 5/9Altman Z: 1.71

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

HCAUndervalued (+59.9%)

Margin of Safety

+59.9%

Fair Value

$1326.31

Current Price

$484.02

$842.29 discount

UndervaluedFair: $1326.31Overvalued
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

HCA5 strengths · Avg: 9.0/10
Return on EquityProfitability
136.3%10/10

Every $100 of equity generates 136 in profit

Debt/EquityHealth
-8.3310/10

Conservative balance sheet, low leverage

Market CapQuality
$108.62B9/10

Large-cap with strong market position

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
44.5%8/10

Earnings expanding 44.5% YoY

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

HCA1 concerns · Avg: 4.0/10
Altman Z-ScoreHealth
1.714/10

Distress zone — elevated risk

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 : HCA

The strongest argument for HCA centers on Return on Equity, Debt/Equity, Market Cap. PEG of 1.35 suggests the stock is reasonably priced for its growth.

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 : HCA

The primary concerns for HCA are Altman Z-Score.

Bear Case : WAT

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

Key Dynamics to Monitor

HCA profiles as a value stock while WAT is a mature play — different risk/reward profiles.

HCA carries more volatility with a beta of 1.34 — expect wider price swings.

WAT is growing revenue faster at 6.8% — sustainability is the question.

HCA generates stronger free cash flow (870M), providing more financial flexibility.

Bottom Line

HCA scores higher overall (69/100 vs 60/100). 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.

HCA Holdings Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

HCA Healthcare is an American for-profit operator of health care facilities that was founded in 1968. It is based in Nashville, Tennessee, and, as of May 2020, owns and operates 186 hospitals and approximately 2,000 sites of care, including surgery centers, freestanding emergency rooms, urgent care centers and physician clinics in 21 states and the United Kingdom.

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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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