Vertex Pharmaceuticals Inc (VRTX)vsWaters Corporation (WAT)
VRTX
Vertex Pharmaceuticals Inc
$429.82
+1.13%
HEALTHCARE · Cap: $107.87B
WAT
Waters Corporation
$355.13
+1.32%
HEALTHCARE · Cap: $34.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Vertex Pharmaceuticals Inc generates 224% more annual revenue ($12.22B vs $3.77B). VRTX leads profitability with a 35.5% profit margin vs 11.9%. WAT appears more attractively valued with a PEG of 1.52. VRTX earns a higher WallStSmart Score of 66/100 (B-).
VRTX
Strong Buy66
out of 100
Grade: B-
WAT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.2%
Fair Value
$992.87
Current Price
$429.82
$563.05 discount
Margin of Safety
-63.1%
Fair Value
$201.83
Current Price
$355.13
$153.30 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 38.1%
Earnings expanding 61.4% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Revenue surging 91.5% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Expensive relative to growth rate
Trading at 8.3x book value
ROE of 5.2% — below average capital efficiency
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 35.5% and operating margin at 38.1%.
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 : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, 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
VRTX profiles as a mature 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.
VRTX generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 52/100), backed by strong 35.5% margins. 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.
Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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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