WAT vs. ZBH: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at WAT and ZBH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | WAT | ZBH |
|---|---|---|
| Company Name | Waters Corporation | Zimmer Biomet Holdings, Inc. |
| Country | United States | United States |
| GICS Sector | Health Care | Health Care |
| GICS Industry | Life Sciences Tools & Services | Health Care Equipment & Supplies |
| Market Capitalization | 22.42 billion USD | 17.58 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 17, 1995 | July 25, 2001 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of WAT and ZBH by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | WAT | ZBH |
|---|---|---|
| 5-Day Price Return | 2.51% | -14.00% |
| 13-Week Price Return | 34.83% | -11.29% |
| 26-Week Price Return | 9.01% | -5.74% |
| 52-Week Price Return | -2.47% | -18.36% |
| Month-to-Date Return | 7.71% | -11.76% |
| Year-to-Date Return | 1.51% | -16.00% |
| 10-Day Avg. Volume | 0.73M | 3.04M |
| 3-Month Avg. Volume | 0.80M | 1.68M |
| 3-Month Volatility | 32.70% | 36.72% |
| Beta | 1.17 | 0.62 |
Profitability
Return on Equity (TTM)
WAT
35.02%
Life Sciences Tools & Services Industry
- Max
- 19.96%
- Q3
- 11.51%
- Median
- 6.47%
- Q1
- 3.86%
- Min
- -6.95%
WAT’s Return on Equity of 35.02% is exceptionally high, placing it well beyond the typical range for the Life Sciences Tools & Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
ZBH
6.62%
Health Care Equipment & Supplies Industry
- Max
- 29.93%
- Q3
- 16.99%
- Median
- 9.28%
- Q1
- 5.10%
- Min
- -12.52%
ZBH’s Return on Equity of 6.62% is on par with the norm for the Health Care Equipment & Supplies industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
WAT
21.71%
Life Sciences Tools & Services Industry
- Max
- 32.18%
- Q3
- 18.30%
- Median
- 10.19%
- Q1
- 4.20%
- Min
- -2.05%
A Net Profit Margin of 21.71% places WAT in the upper quartile for the Life Sciences Tools & Services industry, signifying strong profitability and more effective cost management than most of its peers.
ZBH
10.51%
Health Care Equipment & Supplies Industry
- Max
- 24.41%
- Q3
- 13.71%
- Median
- 10.08%
- Q1
- 5.96%
- Min
- -5.58%
ZBH’s Net Profit Margin of 10.51% is aligned with the median group of its peers in the Health Care Equipment & Supplies industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
WAT
27.69%
Life Sciences Tools & Services Industry
- Max
- 38.39%
- Q3
- 21.40%
- Median
- 13.57%
- Q1
- 8.38%
- Min
- -3.51%
An Operating Profit Margin of 27.69% places WAT in the upper quartile for the Life Sciences Tools & Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
ZBH
16.09%
Health Care Equipment & Supplies Industry
- Max
- 31.09%
- Q3
- 18.11%
- Median
- 15.07%
- Q1
- 8.48%
- Min
- -0.28%
ZBH’s Operating Profit Margin of 16.09% is around the midpoint for the Health Care Equipment & Supplies industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | WAT | ZBH |
|---|---|---|
| Return on Equity (TTM) | 35.02% | 6.62% |
| Return on Assets (TTM) | 14.40% | 3.74% |
| Net Profit Margin (TTM) | 21.71% | 10.51% |
| Operating Profit Margin (TTM) | 27.69% | 16.09% |
| Gross Profit Margin (TTM) | 59.02% | 71.06% |
Financial Strength
Current Ratio (MRQ)
WAT
1.75
Life Sciences Tools & Services Industry
- Max
- 3.46
- Q3
- 2.78
- Median
- 1.91
- Q1
- 1.53
- Min
- 0.43
WAT’s Current Ratio of 1.75 aligns with the median group of the Life Sciences Tools & Services industry, indicating that its short-term liquidity is in line with its sector peers.
ZBH
1.87
Health Care Equipment & Supplies Industry
- Max
- 5.19
- Q3
- 3.00
- Median
- 2.13
- Q1
- 1.44
- Min
- 0.86
ZBH’s Current Ratio of 1.87 aligns with the median group of the Health Care Equipment & Supplies industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
WAT
0.67
Life Sciences Tools & Services Industry
- Max
- 1.35
- Q3
- 0.74
- Median
- 0.41
- Q1
- 0.18
- Min
- 0.00
WAT’s Debt-to-Equity Ratio of 0.67 is typical for the Life Sciences Tools & Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
ZBH
0.60
Health Care Equipment & Supplies Industry
- Max
- 1.61
- Q3
- 0.76
- Median
- 0.45
- Q1
- 0.14
- Min
- 0.00
ZBH’s Debt-to-Equity Ratio of 0.60 is typical for the Health Care Equipment & Supplies industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
WAT
11.29
Life Sciences Tools & Services Industry
- Max
- 45.00
- Q3
- 27.84
- Median
- 7.16
- Q1
- 2.12
- Min
- -14.08
WAT’s Interest Coverage Ratio of 11.29 is positioned comfortably within the norm for the Life Sciences Tools & Services industry, indicating a standard and healthy capacity to cover its interest payments.
ZBH
5.76
Health Care Equipment & Supplies Industry
- Max
- 56.35
- Q3
- 25.56
- Median
- 9.60
- Q1
- 3.78
- Min
- -26.49
ZBH’s Interest Coverage Ratio of 5.76 is positioned comfortably within the norm for the Health Care Equipment & Supplies industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | WAT | ZBH |
|---|---|---|
| Current Ratio (MRQ) | 1.75 | 1.87 |
| Quick Ratio (MRQ) | 1.22 | 0.80 |
| Debt-to-Equity Ratio (MRQ) | 0.67 | 0.60 |
| Interest Coverage Ratio (TTM) | 11.29 | 5.76 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
WAT
0.00%
Life Sciences Tools & Services Industry
- Max
- 1.41%
- Q3
- 0.65%
- Median
- 0.35%
- Q1
- 0.00%
- Min
- 0.00%
WAT currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
ZBH
1.10%
Health Care Equipment & Supplies Industry
- Max
- 4.15%
- Q3
- 1.76%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
ZBH’s Dividend Yield of 1.10% is consistent with its peers in the Health Care Equipment & Supplies industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
WAT
0.00%
Life Sciences Tools & Services Industry
- Max
- 113.14%
- Q3
- 61.34%
- Median
- 17.74%
- Q1
- 0.00%
- Min
- 0.00%
WAT has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
ZBH
23.39%
Health Care Equipment & Supplies Industry
- Max
- 160.00%
- Q3
- 66.60%
- Median
- 27.49%
- Q1
- 0.00%
- Min
- 0.00%
ZBH’s Dividend Payout Ratio of 23.39% is within the typical range for the Health Care Equipment & Supplies industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | WAT | ZBH |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.10% |
| Dividend Payout Ratio (TTM) | 0.00% | 23.39% |
Valuation
Price-to-Earnings Ratio (TTM)
WAT
33.41
Life Sciences Tools & Services Industry
- Max
- 75.35
- Q3
- 51.00
- Median
- 32.93
- Q1
- 25.27
- Min
- 1.43
WAT’s P/E Ratio of 33.41 is within the middle range for the Life Sciences Tools & Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
ZBH
21.31
Health Care Equipment & Supplies Industry
- Max
- 67.29
- Q3
- 47.01
- Median
- 30.94
- Q1
- 23.91
- Min
- 10.79
In the lower quartile for the Health Care Equipment & Supplies industry, ZBH’s P/E Ratio of 21.31 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
WAT
7.25
Life Sciences Tools & Services Industry
- Max
- 10.49
- Q3
- 6.43
- Median
- 4.66
- Q1
- 2.88
- Min
- 1.08
WAT’s P/S Ratio of 7.25 is in the upper echelon for the Life Sciences Tools & Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
ZBH
2.24
Health Care Equipment & Supplies Industry
- Max
- 9.49
- Q3
- 5.41
- Median
- 2.86
- Q1
- 2.07
- Min
- 0.74
ZBH’s P/S Ratio of 2.24 aligns with the market consensus for the Health Care Equipment & Supplies industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
WAT
9.62
Life Sciences Tools & Services Industry
- Max
- 6.69
- Q3
- 5.00
- Median
- 3.46
- Q1
- 2.38
- Min
- 0.93
At 9.62, WAT’s P/B Ratio is at an extreme premium to the Life Sciences Tools & Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
ZBH
1.44
Health Care Equipment & Supplies Industry
- Max
- 10.85
- Q3
- 6.56
- Median
- 3.53
- Q1
- 2.36
- Min
- 0.71
ZBH’s P/B Ratio of 1.44 is in the lower quartile for the Health Care Equipment & Supplies industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | WAT | ZBH |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 33.41 | 21.31 |
| Price-to-Sales Ratio (TTM) | 7.25 | 2.24 |
| Price-to-Book Ratio (MRQ) | 9.62 | 1.44 |
| Price-to-Free Cash Flow Ratio (TTM) | 35.68 | 14.73 |