WAT vs MTSI

For growth investors, MACOM Technology Solutions Holdings, Inc.

(MTSI) is the stronger pick with 32. 6% revenue growth year-over-year, versus 7. 0% for Waters Corporation (WAT). Waters Corporation (WAT) offers the better valuation at 32. 5x trailing P/E (24. 3x forward), making it the more compelling value choice. Analysts rate MACOM Technology Solutions Holdings, Inc. (MTSI) a "Buy" — based on 23 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 forward P/E, Waters Corporation is actually cheaper at 24.

3x.

Over the past 5 years, MACOM Technology Solutions Holdings, Inc.

(MTSI) delivered a total return of +470. 3%, compared to +13. 1% for Waters Corporation (WAT). Over 10 years, the gap is even starker: MTSI returned +700. 5% versus WAT's +163. 2%. 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 MACOM Technology Solutions Holdings, Inc. 's 1. 75β — meaning MTSI is approximately 63% more volatile than WAT relative to the S&P 500. On balance sheet safety, MACOM Technology Solutions Holdings, Inc. (MTSI) carries a lower debt/equity ratio of 41% versus 55% for Waters Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), MACOM Technology Solutions Holdings, Inc.

(MTSI) is pulling ahead at 32. 6% versus 7. 0% for Waters Corporation (WAT). On earnings-per-share growth, the picture is similar: Waters Corporation grew EPS 0. 5% year-over-year, compared to -170. 2% for MACOM Technology Solutions Holdings, Inc.. Over a 3-year CAGR, MTSI leads at 12. 7% 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 -5. 6% for MACOM Technology Solutions Holdings, 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 13. 4% for MTSI. 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.

On forward earnings alone, Waters Corporation (WAT) trades at 24.

3x forward P/E versus 69. 2x for MACOM Technology Solutions Holdings, Inc. — 44. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WAT: 15. 2% to $402. 57.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Waters Corporation (WAT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

07), +163. 2% 10Y return). MACOM Technology Solutions Holdings, Inc. (MTSI) carries a higher beta of 1. 75 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (WAT: +163. 2%, MTSI: +700. 5%), 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.

These companies operate in different sectors (WAT (Healthcare) and MTSI (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: WAT is a mid-cap quality compounder stock; MTSI is a mid-cap high-growth stock. 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.