Reviewing West Pharmaceutical Services (WST) and CTI Industries (CTIB)

West Pharmaceutical Services (NYSE:WST) and CTI Industries (NASDAQ:CTIB) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Insider & Institutional Ownership

93.6% of West Pharmaceutical Services shares are owned by institutional investors. Comparatively, 4.8% of CTI Industries shares are owned by institutional investors. 1.9% of West Pharmaceutical Services shares are owned by insiders. Comparatively, 50.0% of CTI Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

West Pharmaceutical Services pays an annual dividend of $0.60 per share and has a dividend yield of 0.6%. CTI Industries does not pay a dividend. West Pharmaceutical Services pays out 21.6% of its earnings in the form of a dividend. West Pharmaceutical Services has increased its dividend for 25 consecutive years.

Risk and Volatility

West Pharmaceutical Services has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, CTI Industries has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for West Pharmaceutical Services and CTI Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
West Pharmaceutical Services 1 1 0 0 1.50
CTI Industries 0 0 0 0 N/A

West Pharmaceutical Services currently has a consensus price target of $97.50, indicating a potential downside of 8.16%. Given West Pharmaceutical Services’ higher possible upside, analysts clearly believe West Pharmaceutical Services is more favorable than CTI Industries.

Profitability

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

Net Margins Return on Equity Return on Assets
West Pharmaceutical Services 9.06% 15.78% 10.90%
CTI Industries -2.32% -7.18% -1.86%

Valuation & Earnings

This table compares West Pharmaceutical Services and CTI Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
West Pharmaceutical Services $1.60 billion 4.92 $150.70 million $2.78 38.19
CTI Industries $56.24 million 0.23 -$1.60 million N/A N/A

West Pharmaceutical Services has higher revenue and earnings than CTI Industries.

Summary

West Pharmaceutical Services beats CTI Industries on 11 of the 13 factors compared between the two stocks.

West Pharmaceutical Services Company Profile

West Pharmaceutical Services, Inc. manufactures and sells containment and delivery systems for injectable drugs and healthcare products in the United States, Germany, France, Other European countries, and internationally. The company operates through two segments, Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers stoppers and seals for injectable packaging systems; syringe and cartridge components, including custom solutions for the needs of injectable drug applications, as well as administration systems that enhance the safe delivery of drugs through advanced reconstitution, mixing, and transfer technologies; and films, coatings, and washing and sterilization processes and services to enhance the quality of packaging components. It also provides drug containment solutions, including CZ, a cyclic olefin polymer in the form of vials, syringes, and cartridges; and self-injection devices, as well as specialized testing services for drug packaging, devices, and administration systems. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of components and devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. This segment serves pharmaceutical, diagnostic, and medical device companies. The company distributes its products through its sales force and distribution network, as well as contract sales agents and regional distributors. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Exton, Pennsylvania.

CTI Industries Company Profile

CTI Industries Corporation develops, produces, and distributes consumer and film products for commercial and industrial uses in the United States, the United Kingdom, Europe, and Mexico. The company offers novelty products, including foil balloons; latex balloons under the Partyloons name; balloon products, which include punch balls, water bombs, and Animal Twisties; and other inflatable toy items. It also provides vacuum sealable bags and rolls of film for household storage under the Ziploc brand; vacuum sealing machines under the Ziploc name; and valved resealable bags for vacuum storage use under the Zipvac brand name. In addition, the company offers packaging films and custom film products for food, and other commercial and packaging applications; produces and distributes home organization and container products; assembles and sells Candy Blossom product line; and distribute party goods. It primarily serves various retail outlets, including general merchandise stores, discount and drugstore chains, grocery chains, card and gift shops, and party goods stores, as well as florists and balloon decorators. The company sells its products directly, as well as through a network of distributors and wholesalers, and independent sales representatives. CTI Industries Corporation was founded in 1975 and is headquartered in Lake Barrington, Illinois.

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