Head-To-Head Analysis: MaxCyte (NASDAQ:MXCT) vs. Waters (NYSE:WAT)

Waters (NYSE:WAT) and MaxCyte (NASDAQ:MXCT) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Waters and MaxCyte, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waters	0	6	11	3	2.85
MaxCyte	1	1	1	0	2.00

Waters currently has a consensus price target of $434.60, indicating a potential upside of 2.07%. MaxCyte has a consensus price target of $5.00, indicating a potential upside of 303.23%. Given MaxCyte’s higher probable upside, analysts plainly believe MaxCyte is more favorable than Waters.

Earnings and Valuation

This table compares Waters and MaxCyte”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	13.22	$642.63 million	$4.01	106.18
MaxCyte	$33.03 million	3.87	-$44.63 million	($0.33)	-3.76

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Waters	3.58%	11.27%	6.73%
MaxCyte	-114.77%	-18.92%	-16.14%

Volatility and Risk

Waters has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, MaxCyte has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Insider and Institutional Ownership

94.0% of Waters shares are held by institutional investors. Comparatively, 68.8% of MaxCyte shares are held by institutional investors. 0.3% of Waters shares are held by insiders. Comparatively, 4.1% of MaxCyte shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Waters beats MaxCyte 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 MaxCyte

MaxCyte, Inc., a life sciences company, discovers, develops, and commercializes next-generation cell therapies in the United States and internationally. Its products include ExPERT ATx, a static electroporation instrument for small to medium scale transfection; ExPERT STx, a flow electroporation for protein production and drug development, as well as expression of therapeutic targets for cell-based assays; ExPERT GTx, a flow electroporation for large scale transfection in therapeutic applications; and ExPERT VLx for very large volume cell-engineering. The company also provides disposable processing assemblies (PAs) to process and electroporate cells; and accessories supporting PAs, such as electroporation buffer solution and software protocols. It licenses and sells its instruments and technology; and sells its consumables to developers of cell therapies, as well as to pharmaceutical and biotechnology companies for use in drug discovery and development, and bio-manufacturing. MaxCyte, Inc. was incorporated in 1998 and is headquartered in Rockville, Maryland.