Analyzing PROCEPT BioRobotics (NASDAQ:PRCT) & Waters (NYSE:WAT)

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

Institutional and Insider Ownership

94.0% of Waters shares are held by institutional investors. Comparatively, 89.5% of PROCEPT BioRobotics shares are held by institutional investors. 0.3% of Waters shares are held by company insiders. Comparatively, 6.6% of PROCEPT BioRobotics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Waters and PROCEPT BioRobotics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waters	0	9	9	3	2.71
PROCEPT BioRobotics	2	5	7	0	2.36

Waters presently has a consensus target price of $394.56, suggesting a potential upside of 11.11%. PROCEPT BioRobotics has a consensus target price of $41.36, suggesting a potential upside of 60.95%. Given PROCEPT BioRobotics’ higher probable upside, analysts clearly believe PROCEPT BioRobotics is more favorable than Waters.

Profitability

This table compares Waters and PROCEPT BioRobotics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waters	11.91%	15.60%	8.90%
PROCEPT BioRobotics	-31.82%	-27.70%	-20.29%

Volatility and Risk

Waters has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, PROCEPT BioRobotics has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Valuation & Earnings

This table compares Waters and PROCEPT BioRobotics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waters	$3.17 billion	11.02	$642.63 million	$7.87	45.12
PROCEPT BioRobotics	$308.05 million	4.75	-$95.57 million	($1.82)	-14.12

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

Summary

Waters beats PROCEPT BioRobotics on 13 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 PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.