WallStSmart

Ross Stores Inc (ROST)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ross Stores Inc generates 503% more annual revenue ($22.75B vs $3.77B). WAT leads profitability with a 11.9% profit margin vs 9.4%. WAT appears more attractively valued with a PEG of 1.52. ROST earns a higher WallStSmart Score of 56/100 (C).

ROST

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 7.5Value: 3.3Quality: 7.0
Piotroski: 5/9Altman Z: 3.10

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

ROSTFair Value (-4.9%)

Margin of Safety

-4.9%

Fair Value

$183.53

Current Price

$225.81

$42.28 premium

UndervaluedFair: $183.53Overvalued
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

ROST3 strengths · Avg: 9.7/10
Return on EquityProfitability
36.7%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
3.1010/10

Safe zone — low bankruptcy risk

Market CapQuality
$73.04B9/10

Large-cap with strong market position

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

ROST3 concerns · Avg: 3.3/10
P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.8x4/10

Trading at 11.8x book value

PEG RatioValuation
3.312/10

Expensive relative to growth rate

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 : ROST

The strongest argument for ROST centers on Return on Equity, Altman Z-Score, Market Cap. Revenue growth of 12.2% demonstrates continued momentum.

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 : ROST

The primary concerns for ROST are P/E Ratio, Price/Book, PEG Ratio.

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

ROST profiles as a value stock while WAT is a growth play — different risk/reward profiles.

WAT carries more volatility with a beta of 1.14 — expect wider price swings.

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

ROST generates stronger free cash flow (921M), providing more financial flexibility.

Bottom Line

ROST scores higher overall (56/100 vs 52/100) and 12.2% revenue growth. 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.

Ross Stores Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.

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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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