A vs WAT vs TMO

For growth investors, Waters Corporation (WAT) is the stronger pick with 7.

0% revenue growth year-over-year, versus 3. 9% for Thermo Fisher Scientific Inc. (TMO). Agilent Technologies, Inc. (A) offers the better valuation at 26. 0x trailing P/E (19. 9x forward), making it the more compelling value choice. Analysts rate Agilent Technologies, Inc. (A) a "Buy" — based on 38 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Agilent Technologies, Inc.

(A) is the cheapest at 26. 0x versus Waters Corporation at 32. 6x. On forward P/E, Thermo Fisher Scientific Inc. is actually cheaper at 19. 1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Agilent Technologies, Inc. wins at 1. 35x versus Thermo Fisher Scientific Inc. 's 9. 05x — a reasonable growth-adjusted valuation.

Over the past 5 years, Waters Corporation (WAT) delivered a total return of +11.

3%, compared to -8. 0% for Agilent Technologies, Inc. (A). Over 10 years, the gap is even starker: TMO returned +229. 1% versus WAT's +162. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Waters Corporation (WAT) is the lower-risk stock at 1.

07β versus Agilent Technologies, Inc. 's 1. 23β — meaning A is approximately 15% more volatile than WAT relative to the S&P 500. On balance sheet safety, Agilent Technologies, Inc. (A) carries a lower debt/equity ratio of 50% versus 76% for Thermo Fisher Scientific Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Waters Corporation (WAT) is pulling ahead at 7.

0% versus 3. 9% for Thermo Fisher Scientific Inc. (TMO). On earnings-per-share growth, the picture is similar: Thermo Fisher Scientific Inc. grew EPS 7. 3% year-over-year, compared to 0. 5% for Waters Corporation. Over a 3-year CAGR, WAT leads at 2. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Waters Corporation (WAT) is the more profitable company, earning 20.

3% net margin versus 15. 1% for Thermo Fisher Scientific Inc. — meaning it keeps 20. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WAT leads at 28. 2% versus 18. 2% for TMO. At the gross margin level — before operating expenses — WAT leads at 57. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Agilent Technologies, Inc. (A) is the more undervalued stock at a PEG of 1. 35x versus Thermo Fisher Scientific Inc. 's 9. 05x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Thermo Fisher Scientific Inc. (TMO) trades at 19. 1x forward P/E versus 24. 4x for Waters Corporation — 5. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for A: 39. 9% to $166. 00.

In this comparison, A (0.

8% yield), TMO (0. 4% yield) pay a dividend. WAT does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Agilent Technologies, Inc.

(A) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 23), 0. 8% yield, +205. 7% 10Y return). Both have compounded well over 10 years (A: +205. 7%, WAT: +162. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

A pays a dividend while WAT, TMO do not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.