West Pharmaceutical Services (NYSE: WST) is one of 90 publicly-traded companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it contrast to its rivals? We will compare West Pharmaceutical Services to related businesses based on the strength of its profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares West Pharmaceutical Services and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
West Pharmaceutical Services $1.51 billion $143.60 million 40.50
West Pharmaceutical Services Competitors $1.09 billion $127.35 million 199.78

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

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 22.3% of its earnings in the form of a dividend. As a group, “Medical Equipment, Supplies & Distribution” companies pay a dividend yield of 0.9% and pay out 38.3% of their earnings in the form of a dividend. West Pharmaceutical Services has raised its dividend for 24 consecutive years.

Volatility & Risk

West Pharmaceutical Services has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, West Pharmaceutical Services’ rivals have a beta of 1.10, indicating that their average stock price is 10% more volatile than the S&P 500.

Institutional & Insider Ownership

91.0% of West Pharmaceutical Services shares are held by institutional investors. Comparatively, 68.1% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by institutional investors. 1.9% of West Pharmaceutical Services shares are held by company insiders. Comparatively, 11.3% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
West Pharmaceutical Services 12.12% 14.47% 9.71%
West Pharmaceutical Services Competitors -129.01% -39.34% -10.36%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for West Pharmaceutical Services and its rivals, 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 213 1307 2853 101 2.64

West Pharmaceutical Services currently has a consensus target price of $106.00, suggesting a potential upside of 4.28%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 5.08%. Given West Pharmaceutical Services’ rivals stronger consensus rating and higher probable upside, analysts clearly believe West Pharmaceutical Services has less favorable growth aspects than its rivals.

Summary

West Pharmaceutical Services beats its rivals on 8 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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