West Pharmaceutical Services (NYSE:WST – Get Free Report) and Quipt Home Medical (NASDAQ:QIPT – Get Free Report) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for West Pharmaceutical Services and Quipt Home Medical, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| West Pharmaceutical Services | 0 | 1 | 3 | 0 | 2.75 |
| Quipt Home Medical | 1 | 0 | 3 | 1 | 2.80 |
West Pharmaceutical Services currently has a consensus price target of $442.75, indicating a potential upside of 37.76%. Quipt Home Medical has a consensus price target of $7.25, indicating a potential upside of 137.70%. Given Quipt Home Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Quipt Home Medical is more favorable than West Pharmaceutical Services.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| West Pharmaceutical Services | $2.95 billion | 7.94 | $593.40 million | $7.58 | 42.40 |
| Quipt Home Medical | $252.13 million | 0.52 | -$2.78 million | ($0.10) | -30.50 |
West Pharmaceutical Services has higher revenue and earnings than Quipt Home Medical. Quipt Home Medical 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 Quipt Home Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| West Pharmaceutical Services | 19.42% | 20.57% | 15.47% |
| Quipt Home Medical | -1.71% | -3.89% | -1.76% |
Risk and Volatility
West Pharmaceutical Services has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Quipt Home Medical has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.
Institutional and Insider Ownership
93.9% of West Pharmaceutical Services shares are held by institutional investors. Comparatively, 42.8% of Quipt Home Medical shares are held by institutional investors. 0.5% of West Pharmaceutical Services shares are held by company insiders. Comparatively, 4.2% of Quipt Home Medical shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
West Pharmaceutical Services beats Quipt Home Medical on 10 of the 14 factors compared between the two stocks.
About West Pharmaceutical Services
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.
About Quipt Home Medical
Quipt Home Medical Corp., through its subsidiaries, engages in the provision of durable and home medical equipment and supplies in the United States. The company offers nebulizers, oxygen concentrators, and CPAP and BiPAP units; traditional and non-traditional durable medical respiratory equipment and services; non-invasive ventilation equipment, supplies, and services; and engages in the rental of medical equipment. It offers management of various chronic disease states focusing on patients with heart and pulmonary disease, sleep apnea, reduced mobility, and other chronic health conditions. The company was formerly known as Protech Home Medical Corp. and changed its name to Quipt Home Medical Corp. in May 2021. Quipt Home Medical Corp. is headquartered in Wilder, Kentucky.
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