WallStSmart

Waters Corporation (WAT)vsWestern Digital Corporation (WDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Western Digital Corporation generates 239% more annual revenue ($10.73B vs $3.17B). WDC leads profitability with a 35.6% profit margin vs 20.3%. WDC appears more attractively valued with a PEG of 0.69. WAT earns a higher WallStSmart Score of 60/100 (C).

WAT

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 7.3Quality: 6.8
Piotroski: 4/9Altman Z: 4.92

WDC

Buy

55

out of 100

Grade: C

Growth: 2.0Profit: 9.0Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

WATSignificantly Overvalued (-349.9%)

Margin of Safety

-349.9%

Fair Value

$73.17

Current Price

$298.99

$225.82 premium

UndervaluedFair: $73.17Overvalued
WDCSignificantly Overvalued (-311.2%)

Margin of Safety

-311.2%

Fair Value

$66.57

Current Price

$293.10

$226.53 premium

UndervaluedFair: $66.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

WDC4 strengths · Avg: 9.3/10
Return on EquityProfitability
41.1%10/10

Every $100 of equity generates 41 in profit

Profit MarginProfitability
35.6%10/10

Keeps 36 of every $100 in revenue as profit

Market CapQuality
$100.21B9/10

Large-cap with strong market position

PEG RatioValuation
0.698/10

Growing faster than its price suggests

Areas to Watch

WAT2 concerns · Avg: 3.0/10
P/E RatioValuation
27.8x4/10

Moderate valuation

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

WDC4 concerns · Avg: 3.0/10
P/E RatioValuation
29.9x4/10

Moderate valuation

Price/BookValuation
14.0x4/10

Trading at 14.0x book value

Revenue GrowthGrowth
-41.0%2/10

Revenue declined 41.0%

EPS GrowthGrowth
-95.9%2/10

Earnings declined 95.9%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : WDC

The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 suggests the stock is reasonably priced for its growth.

Bear Case : WAT

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

Bear Case : WDC

The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

WAT profiles as a mature stock while WDC is a declining play — different risk/reward profiles.

WDC carries more volatility with a beta of 1.85 — expect wider price swings.

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

WDC generates stronger free cash flow (653M), providing more financial flexibility.

Bottom Line

WAT scores higher overall (60/100 vs 55/100), backed by strong 20.3% margins. 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.

Waters Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.

Western Digital Corporation

TECHNOLOGY · COMPUTER HARDWARE · USA

Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.

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