Laboratory Corporation of America Holdings (LH)vsWaters Corporation (WAT)
LH
Laboratory Corporation of America Holdings
$266.02
-0.04%
HEALTHCARE · Cap: $22.06B
WAT
Waters Corporation
$302.32
+0.13%
HEALTHCARE · Cap: $29.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Laboratory Corporation of America Holdings generates 341% more annual revenue ($13.95B vs $3.17B). WAT leads profitability with a 20.3% profit margin vs 6.3%. LH appears more attractively valued with a PEG of 1.10. LH earns a higher WallStSmart Score of 63/100 (C+).
LH
Buy63
out of 100
Grade: C+
WAT
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+13.2%
Fair Value
$333.88
Current Price
$266.02
$67.86 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
Reasonable price relative to book value
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
Moderate valuation
6.3% margin — thin
Moderate valuation
Earnings declined 3.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : LH
The strongest argument for LH centers on Price/Book. PEG of 1.10 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 : LH
The primary concerns for LH are P/E Ratio, Profit Margin.
Bear Case : WAT
The primary concerns for WAT are P/E Ratio, EPS Growth.
Key Dynamics to Monitor
LH profiles as a value 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.
WAT is growing revenue faster at 6.8% — sustainability is the question.
LH generates stronger free cash flow (490M), providing more financial flexibility.
Bottom Line
LH scores higher overall (63/100 vs 60/100). 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.
Laboratory Corporation of America Holdings
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Laboratory Corporation of America Holdings, more commonly known as Labcorp, is an American company headquartered in Burlington, North Carolina. It operates one of the largest clinical laboratory networks in the world, with a United States network of 36 primary laboratories.
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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