West Pharmaceutical Services (NYSE:WST) & The Competition Financial Comparison

West Pharmaceutical Services (NYSE: WST) is one of 84 public companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it contrast to its competitors? We will compare West Pharmaceutical Services to related companies based on the strength of its valuation, dividends, profitability, analyst recommendations, earnings, risk and institutional ownership.

Profitability



This table compares West Pharmaceutical Services and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
West Pharmaceutical Services 11.42% 14.02% 9.32%
West Pharmaceutical Services Competitors -127.06% -36.65% -10.29%

Insider & Institutional Ownership

90.2% of West Pharmaceutical Services shares are owned by institutional investors. Comparatively, 66.2% of shares of all “Medical Equipment, Supplies & Distribution” companies are owned by institutional investors. 1.9% of West Pharmaceutical Services shares are owned by company insiders. Comparatively, 11.0% of shares of all “Medical Equipment, Supplies & Distribution” companies are owned by company 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 Recommendations

This is a summary of current ratings for West Pharmaceutical Services and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
West Pharmaceutical Services 0 2 3 0 2.60
West Pharmaceutical Services Competitors 179 1144 2502 89 2.64

West Pharmaceutical Services presently has a consensus target price of $106.00, indicating a potential upside of 5.02%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 9.16%. Given West Pharmaceutical Services’ competitors stronger consensus rating and higher possible upside, analysts clearly believe West Pharmaceutical Services has less favorable growth aspects than its competitors.

Dividends

West Pharmaceutical Services pays an annual dividend of $0.56 per share and has a dividend yield of 0.6%. West Pharmaceutical Services pays out 23.9% of its earnings in the form of a dividend. As a group, “Medical Equipment, Supplies & Distribution” companies pay a dividend yield of 0.8% and pay out 37.1% of their earnings in the form of a dividend. West Pharmaceutical Services has increased its dividend for 24 consecutive years.

Earnings and Valuation

This table compares West Pharmaceutical Services and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
West Pharmaceutical Services $1.54 billion $317.90 million 43.13
West Pharmaceutical Services Competitors $827.23 million $159.50 million 40.89

West Pharmaceutical Services has higher revenue and earnings than its competitors. West Pharmaceutical Services is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

West Pharmaceutical Services has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, West Pharmaceutical Services’ competitors have a beta of 1.06, indicating that their average stock price is 6% more volatile than the S&P 500.

Summary

West Pharmaceutical Services beats its competitors on 9 of the 15 factors compared.

West Pharmaceutical Services Company Profile

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.

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