Financial Analysis: West Pharmaceutical Services (NYSE:WST) vs. AngioDynamics (NASDAQ:ANGO)

AngioDynamics (NASDAQ:ANGOGet Free Report) and West Pharmaceutical Services (NYSE:WSTGet Free Report) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

89.4% of AngioDynamics shares are owned by institutional investors. Comparatively, 93.9% of West Pharmaceutical Services shares are owned by institutional investors. 5.4% of AngioDynamics shares are owned by insiders. Comparatively, 0.5% of West Pharmaceutical Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
AngioDynamics -83.95% -5.86% -4.17%
West Pharmaceutical Services 17.37% 18.41% 13.74%

Analyst Ratings

This is a summary of current recommendations and price targets for AngioDynamics and West Pharmaceutical Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AngioDynamics 0 0 4 0 3.00
West Pharmaceutical Services 0 1 4 0 2.80

AngioDynamics presently has a consensus target price of $12.00, suggesting a potential upside of 33.33%. West Pharmaceutical Services has a consensus target price of $437.75, suggesting a potential upside of 32.63%. Given AngioDynamics’ stronger consensus rating and higher probable upside, analysts plainly believe AngioDynamics is more favorable than West Pharmaceutical Services.

Volatility and Risk

AngioDynamics has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, West Pharmaceutical Services has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Earnings & Valuation

This table compares AngioDynamics and West Pharmaceutical Services”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AngioDynamics $292.73 million 1.25 -$184.35 million ($6.09) -1.48
West Pharmaceutical Services $2.95 billion 8.10 $593.40 million $6.74 48.97

West Pharmaceutical Services has higher revenue and earnings than AngioDynamics. AngioDynamics 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.

Summary

West Pharmaceutical Services beats AngioDynamics on 10 of the 13 factors compared between the two stocks.

About AngioDynamics

(Get Free Report)

AngioDynamics, Inc., a medical technology company, engages in the design, manufacture, and sale of medical, surgical, and diagnostic devices for the use in treating peripheral vascular disease, and oncology and surgical settings in the United States and internationally. The company offers Auryon Atherectomy system that is designed to deliver an optimized wavelength, pulse width, and amplitude to remove lesions while preserving vessel wall endothelium. Its thrombus management portfolio includes AlphaVac mechanical thrombectomy system, an emergent mechanical aspiration device that eliminates the need for perfusionist support; thrombolytic catheters that are used to deliver thrombolytic agents, which are drugs to dissolve blood clots in hemodialysis access grafts, arteries, veins, and surgical bypass grafts; and AngioVac venous drainage cannula and extracorporeal circuit, indicated for extracorporeal circulatory support for periods of up to six hours including off-the-shelf pump, filter, and reinfusion cannula, to facilitate venous drainage as part of an extracorporeal bypass procedure. The company also offers NanoKnife IRE Ablation System, an alternative to traditional thermal ablation for the surgical ablation of soft tissue; and peripheral products, which includes angiographic catheters, and diagnostic and interventional guidewires, percutaneous drainage catheters, and coaxial micro-introducer kits used during peripheral diagnostic and interventional procedures. In addition, it provides drainage catheters for multi-purpose/general, nephrostomy, and biliary drainage; micro-Access kits provides interventional physicians a smaller introducer system for minimally invasive procedures; VenaCure EVLT system that are used in endovascular laser procedures to treat superficial venous disease; and Solero MTA System includes solero microwave generator and the specially designed solero MW applicators. The company was founded in 1988 and is headquartered in Latham, New York.

About West Pharmaceutical Services

(Get Free Report)

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.

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