West Pharmaceutical Services (WST) and Its Competitors Financial Contrast

West Pharmaceutical Services (NYSE:WST) is one of 511 publicly-traded companies in the “Healthcare Equipment & Supplies” industry, but how does it compare to its competitors? We will compare West Pharmaceutical Services to similar businesses based on the strength of its profitability, earnings, dividends, institutional ownership, valuation, analyst recommendations and risk.

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	18.81%	21.78%	15.99%
West Pharmaceutical Services Competitors	-278.16%	-150.10%	-21.89%

Volatility & Risk

West Pharmaceutical Services has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, West Pharmaceutical Services’ competitors have a beta of 2.57, suggesting that their average stock price is 157% more volatile than the S&P 500.

Institutional and Insider Ownership

93.9% of West Pharmaceutical Services shares are held by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are held by institutional investors. 0.6% of West Pharmaceutical Services shares are held by insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
West Pharmaceutical Services	$3.07 billion	$493.70 million	45.14
West Pharmaceutical Services Competitors	$1.89 billion	$138.79 million	11.19

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.

Dividends

West Pharmaceutical Services pays an annual dividend of $0.88 per share and has a dividend yield of 0.2%. West Pharmaceutical Services pays out 9.9% of its earnings in the form of a dividend. As a group, “Healthcare Equipment & Supplies” companies pay a dividend yield of 2.2% and pay out 46.6% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations 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	1	13	0	2.93
West Pharmaceutical Services Competitors	4266	10510	18262	826	2.46

West Pharmaceutical Services currently has a consensus target price of $424.67, indicating a potential upside of 5.59%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 18.27%. Given West Pharmaceutical Services’ competitors higher possible upside, analysts plainly believe West Pharmaceutical Services has less favorable growth aspects than its competitors.

Summary

West Pharmaceutical Services beats its competitors on 10 of the 15 factors compared.

West Pharmaceutical Services Company Profile

West Pharmaceutical Services, Inc. designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in 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, washing, and vision inspection and sterilization processes and services to enhance the quality of packaging components. This segment also provides drug containment solutions, including Crystal Zenith, a cyclic olefin polymer in the form of vials, syringes, and cartridges; and self-injection devices; and a range of integrated solutions, including analytical lab services, pre-approval primary packaging support and engineering development, regulatory expertise, and after-sales technical support. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. The company serves pharmaceutical, diagnostic, and medical device companies. It sells and distributes its products through its sales force and distribution network, contract sales agents, and regional distributors. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Exton, Pennsylvania.