Head-To-Head Contrast: Evotec (OTCMKTS:EVTCY) vs. Waters (NYSE:WAT)

Waters (NYSE:WAT) and Evotec (OTCMKTS:EVTCY) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Volatility & Risk

Waters has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Evotec has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waters	$3.17 billion	12.35	$642.63 million	$7.87	50.59
Evotec	$572.16 million	1.13	$7.14 million	$0.41	4.76

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

Analyst Recommendations

This is a summary of current ratings for Waters and Evotec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waters	0	8	9	3	2.75
Evotec	0	0	0	0	0.00

Waters presently has a consensus target price of $418.10, suggesting a potential upside of 5.01%. Given Waters’ stronger consensus rating and higher possible upside, equities analysts clearly believe Waters is more favorable than Evotec.

Institutional & Insider Ownership

94.0% of Waters shares are held by institutional investors. 0.3% of Waters shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Waters and Evotec’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%
Evotec	20.85%	16.02%	7.81%

Summary

Waters beats Evotec 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 Evotec

Evotec SE engages in the discovery and development of new drugs for pharmaceutical and biotechnology companies. It operates through the following segments: EVT Execute and EVT Innovate. The EVT Execute segment provides stand-alone or integrated drug discovery solutions for collaborators targets and programmers on a typical fee-for-service basis or through a variety of commercial structures, which may include performance-based components, such as milestones and royalties. The EVT Innovate develops drug discovery projects, assets and platforms, both internally or through academic collaborations. The company was founded by Manfred Eigen, Karsten Henco, Ulrich Aldag, Freimut Leidenberger, Heinrich Maria Schulte, Rudolf Rigler, and Charles Weissmann on December 8, 1993 and is headquartered in Hamburg, Germany.