Waters Corporation (NYSE: WAT) and PhotoMedex (NASDAQ:PHMD) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Waters Corporation and PhotoMedex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Waters Corporation 24.26% 23.91% 11.89%
PhotoMedex -33.37% -232.04% -19.32%

Analyst Recommendations

This is a summary of current recommendations for Waters Corporation and PhotoMedex, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waters Corporation 2 6 5 0 2.23
PhotoMedex 0 0 0 0 N/A

Waters Corporation currently has a consensus price target of $185.55, indicating a potential downside of 0.18%. Given Waters Corporation’s higher possible upside, research analysts plainly believe Waters Corporation is more favorable than PhotoMedex.

Institutional & Insider Ownership

91.0% of Waters Corporation shares are owned by institutional investors. Comparatively, 4.0% of PhotoMedex shares are owned by institutional investors. 5.1% of Waters Corporation shares are owned by insiders. Comparatively, 21.8% of PhotoMedex shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Waters Corporation has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, PhotoMedex has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Earnings and Valuation

This table compares Waters Corporation and PhotoMedex’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Waters Corporation $2.21 billion 6.71 $766.04 million $6.62 28.08
PhotoMedex $19.46 million 0.38 $1.22 million N/A N/A

Waters Corporation has higher revenue and earnings than PhotoMedex.

Summary

Waters Corporation beats PhotoMedex on 10 of the 11 factors compared between the two stocks.

About Waters Corporation

Waters Corporation is an analytical instrument manufacturer. The Company operates through two segments: Waters and TA. It designs, manufactures, sells and services high performance liquid chromatography (HPLC), ultra performance liquid chromatography (UPLC and together with HPLC, referred to as LC) and mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products and post-warranty service plans. It also designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments through its TA product line. It is also a developer and supplier of software-based products that interface with the Company’s instruments, as well as other suppliers’ instruments. Its LC and LC-MS instruments are utilized in a range of industries to detect, identify, monitor and measure the chemical, physical and biological composition of materials, and to purify a range of compounds.

About PhotoMedex

PhotoMedex, Inc. is a global health products and services company providing integrated disease management and solutions to dermatologists, professional aestheticians and consumers. The Company provides products and services that address skin diseases and conditions, including acne and photo damage. The Company operates through three business segments: Consumer segment, Physician Recurring segment and Professional segment. The Company provides skin health solutions to spa markets, as well as traditional retail, online and infomercial outlets for home-use products. The Company’s Consumer segment is engaged in the designing, development, manufacturing and selling of long-term hair reduction and acne consumer products. Its Physician Recurring segment is engaged in the sales of skincare products. Its Professional segment is engaged in the sale of equipment, such as medical and esthetic light and heat based products. Its LHE brands includes Mistral, Kona, FSD, SpaTouch Elite and accessories.

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