West Pharmaceutical Services (WST) versus DENTSPLY SIRONA (XRAY) Head to Head Review

West Pharmaceutical Services (NYSE: WST) and DENTSPLY SIRONA (NASDAQ:XRAY) are both mid-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Insider and Institutional Ownership

90.6% of West Pharmaceutical Services shares are owned by institutional investors. Comparatively, 93.9% of DENTSPLY SIRONA shares are owned by institutional investors. 1.9% of West Pharmaceutical Services shares are owned by insiders. Comparatively, 2.0% of DENTSPLY SIRONA shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for West Pharmaceutical Services and DENTSPLY SIRONA, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
West Pharmaceutical Services 0 1 3 0 2.75
DENTSPLY SIRONA 1 1 6 0 2.63

West Pharmaceutical Services currently has a consensus target price of $107.00, suggesting a potential upside of 12.64%. DENTSPLY SIRONA has a consensus target price of $65.71, suggesting a potential upside of 14.87%. Given DENTSPLY SIRONA’s higher probable upside, analysts plainly believe DENTSPLY SIRONA is more favorable than West Pharmaceutical Services.

Dividends

West Pharmaceutical Services pays an annual dividend of $0.52 per share and has a dividend yield of 0.5%. DENTSPLY SIRONA pays an annual dividend of $0.35 per share and has a dividend yield of 0.6%. West Pharmaceutical Services pays out 22.2% of its earnings in the form of a dividend. DENTSPLY SIRONA pays out -10.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. West Pharmaceutical Services has increased its dividend for 24 consecutive years. DENTSPLY SIRONA is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

West Pharmaceutical Services has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, DENTSPLY SIRONA has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Earnings & Valuation

This table compares West Pharmaceutical Services and DENTSPLY SIRONA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
West Pharmaceutical Services $1.54 billion 4.56 $317.90 million $2.34 40.59
DENTSPLY SIRONA $3.84 billion 3.42 $823.80 million ($3.47) -16.49

DENTSPLY SIRONA has higher revenue and earnings than West Pharmaceutical Services. DENTSPLY SIRONA is trading at a lower price-to-earnings ratio than West Pharmaceutical Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares West Pharmaceutical Services and DENTSPLY SIRONA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
West Pharmaceutical Services 9.51% 12.91% 8.48%
DENTSPLY SIRONA -20.57% 7.24% 5.02%

Summary

DENTSPLY SIRONA beats West Pharmaceutical Services on 9 of the 16 factors compared between the two stocks.

About West Pharmaceutical Services

West Pharmaceutical Services, Inc. is a manufacturer of packaging components and delivery systems for injectable drugs and healthcare products. The Company’s products include vial containment solutions, prefillable systems, self-injection platforms, cartridge systems and components, reconstitution and transfer systems, intradermal delivery solutions, specialty components, and contract manufacturing and analytical services. The Company’s segments include Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment develops commercial and operational strategies across its global network, with specific emphasis on product offerings to biologic, generic and pharmaceutical drug customers. The Contract-Manufactured Products segment serves as an integrated business focused on the design, manufacture and automated assembly of various devices, primarily for pharmaceutical, diagnostic and medical device customers.

About DENTSPLY SIRONA

DENTSPLY SIRONA Inc. is a manufacturer of professional dental products and technologies. The Company develops, manufactures, and markets solutions offering, including dental and oral health products, as well as other consumable medical devices. It operates through two segments: Dental and Healthcare Consumables, and Technologies. The dental industry encompasses the diagnosis, treatment and prevention of disease and ailments of the teeth, gums and supporting bone. Its principal dental product categories are dental consumable products, dental laboratory products, dental specialty products and dental equipment. Additionally, its consumable medical device products are used for urological and surgical applications. These products are produced by the Company in the United States and internationally and are distributed throughout the world under various brand names, including ANKYLOS, AQUASIL ULTRA, ARTICADENT, ATLANTIS, CALIBRA, CAULK, CAVITRON, CELTRA, DELTON, DENTSPLY, DETREY and DYRACT.

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