Waters (NYSE:WAT) and Prenetics Global (NASDAQ:PRE) Critical Analysis

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Waters and Prenetics Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waters	1	10	3	1	2.27
Prenetics Global	0	0	1	0	3.00

Waters currently has a consensus price target of $379.71, indicating a potential upside of 2.14%. Prenetics Global has a consensus price target of $9.00, indicating a potential upside of 59.29%. Given Prenetics Global’s stronger consensus rating and higher possible upside, analysts clearly believe Prenetics Global is more favorable than Waters.

Institutional & Insider Ownership

94.0% of Waters shares are held by institutional investors. Comparatively, 25.0% of Prenetics Global shares are held by institutional investors. 0.8% of Waters shares are held by insiders. Comparatively, 7.8% of Prenetics Global shares are held 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.

Valuation & Earnings

This table compares Waters and Prenetics Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waters	$2.91 billion	7.60	$642.23 million	$10.48	35.47
Prenetics Global	$25.56 million	2.02	-$62.72 million	($3.99)	-1.42

Waters has higher revenue and earnings than Prenetics Global. Prenetics Global is trading at a lower price-to-earnings ratio than Waters, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Waters has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Prenetics Global has a beta of -0.18, suggesting that its stock price is 118% less volatile than the S&P 500.

Profitability

This table compares Waters and Prenetics Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waters	21.43%	49.93%	14.96%
Prenetics Global	-191.73%	-16.45%	-13.34%

Summary

Waters beats Prenetics Global on 12 of the 15 factors compared between the two stocks.

About Waters

Waters Corporation provides analytical workflow solutions in Asia, the Americas, and Europe. It operates through two segments: Waters and TA. The company designs, manufactures, sells, and services high and ultra-performance liquid chromatography, as well as 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; and develops and supplies software-based products that interface with its instruments, as well as other manufacturers' instruments. In addition, the company offers MS technology instruments are used in drug discovery and development comprising clinical trial testing, the analysis of proteins in disease processes, nutritional safety analysis, and environmental testing. Further, the company provides thermal analysis, rheometry, and calorimetry instruments for use in predicting the suitability and stability of fine chemicals, pharmaceuticals, water, polymers, metals, and viscous liquids for various industrial, consumer good, and healthcare products, as well as for life science research. Its products are used by clinical, pharmaceutical, biochemical, industrial, nutritional safety, environmental, academic, and governmental customers working in research and development, quality assurance, and other laboratory applications. The company was founded in 1958 and is headquartered in Milford, Massachusetts.

About Prenetics Global

Prenetics Global Limited, a genomics-driven health sciences company, engages in revolutionizing prevention, early detection, and treatment. It offers CircleDNA, a prevention arm that uses whole exome sequencing to offer comprehensive consumer DNA test. The company also, through its joint venture, Insighta, engages in pioneering multi-cancer early detection technologies. In addition, the company, through its equity interests in ACT Genomics Holdings Company Limited, is involved in genomic profiling of solid tumors through ACTOnco. Prenetics Global Limited was founded in 2007 and is based in Quarry Bay, Hong Kong.