Critical Survey: West Pharmaceutical Services (NYSE:WST) & OraSure Technologies (OSUR)
West Pharmaceutical Services (NYSE: WST) and OraSure Technologies (NASDAQ:OSUR) 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.
This table compares West Pharmaceutical Services and OraSure Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|West Pharmaceutical Services||11.42%||14.02%||9.32%|
Volatility and Risk
West Pharmaceutical Services has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, OraSure Technologies has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.
West Pharmaceutical Services pays an annual dividend of $0.52 per share and has a dividend yield of 0.6%. OraSure Technologies does not pay a dividend. West Pharmaceutical Services pays out 22.2% of its earnings in the form of a dividend. West Pharmaceutical Services has increased its dividend for 24 consecutive years.
This is a breakdown of recent ratings and recommmendations for West Pharmaceutical Services and OraSure Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|West Pharmaceutical Services||0||1||2||0||2.67|
West Pharmaceutical Services currently has a consensus price target of $81.28, indicating a potential downside of 4.30%. OraSure Technologies has a consensus price target of $15.04, indicating a potential downside of 27.44%. Given West Pharmaceutical Services’ higher possible upside, equities analysts plainly believe West Pharmaceutical Services is more favorable than OraSure Technologies.
Insider and Institutional Ownership
91.4% of West Pharmaceutical Services shares are held by institutional investors. Comparatively, 90.1% of OraSure Technologies shares are held by institutional investors. 1.9% of West Pharmaceutical Services shares are held by insiders. Comparatively, 7.8% of OraSure Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares West Pharmaceutical Services and OraSure Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|West Pharmaceutical Services||$1.54 billion||4.08||$317.90 million||$2.34||36.30|
|OraSure Technologies||$135.07 million||9.13||$23.92 million||$0.54||38.39|
West Pharmaceutical Services has higher revenue and earnings than OraSure Technologies. West Pharmaceutical Services is trading at a lower price-to-earnings ratio than OraSure Technologies, indicating that it is currently the more affordable of the two stocks.
OraSure Technologies beats West Pharmaceutical Services on 9 of the 17 factors compared between the two stocks.
About West Pharmaceutical Services
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.
About OraSure Technologies
OraSure Technologies, Inc. (OraSure) is involved in the development, manufacture, marketing and sale of oral fluid diagnostic products and specimen collection devices using its technologies, as well as other diagnostic products, including immunoassays and other in vitro diagnostic tests that are used on other specimen types. The Company operates in two segments: OSUR and DNAG. OSUR consists of the development, manufacture and sale of diagnostic products, specimen collection devices, and medical devices. DNAG or molecular collection systems business consists primarily of the development, manufacture and sale of oral fluid collection devices that are used to collect, stabilize, and store samples of genetic material for molecular testing. It also manufactures and sells medical devices used for the removal of benign skin lesions by cryosurgery or freezing. It sells over-the-counter (OTC) cryosurgical products to consumers in North America, Europe, Central and South America, and Australia.
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