Halyard Health (NYSE: HYH) and West Pharmaceutical Services (NYSE:WST) are both mid-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
This table compares Halyard Health and West Pharmaceutical Services’ 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%|
This is a breakdown of current ratings and price targets for Halyard Health and West Pharmaceutical Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|West Pharmaceutical Services||0||2||3||0||2.60|
Halyard Health presently has a consensus price target of $41.67, suggesting a potential downside of 11.35%. West Pharmaceutical Services has a consensus price target of $106.00, suggesting a potential upside of 6.00%. Given West Pharmaceutical Services’ higher probable upside, analysts plainly believe West Pharmaceutical Services is more favorable than Halyard Health.
West Pharmaceutical Services pays an annual dividend of $0.56 per share and has a dividend yield of 0.6%. Halyard Health does not pay a dividend. West Pharmaceutical Services pays out 22.3% of its earnings in the form of a dividend. West Pharmaceutical Services has increased its dividend for 24 consecutive years.
Risk & Volatility
Halyard Health has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, West Pharmaceutical Services has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
Valuation and Earnings
This table compares Halyard Health and West Pharmaceutical Services’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Halyard Health||$1.59 billion||1.38||$39.80 million||$1.19||39.50|
|West Pharmaceutical Services||$1,509.10||4.92||$143.60||$2.51||39.84|
Halyard Health has higher revenue and earnings than West Pharmaceutical Services. Halyard Health 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.
Institutional and Insider Ownership
91.0% of Halyard Health shares are owned by institutional investors. Comparatively, 90.3% of West Pharmaceutical Services shares are owned by institutional investors. 1.3% of Halyard Health shares are owned by company insiders. Comparatively, 1.9% of West Pharmaceutical Services shares are owned 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.
West Pharmaceutical Services beats Halyard Health on 10 of the 15 factors compared between the two stocks.
Halyard Health Company Profile
Halyard Health, Inc. is a medical technology company. The Company operates through two segments: Medical Devices and Surgical and Infection Prevention (S&IP). The Medical Devices segment provides a portfolio of product offerings focused on pain management, respiratory and digestive health. The S&IP segment provides healthcare supplies and solutions that target the prevention of healthcare-associated infections. The Company address healthcare needs, such as reducing the use of opioids, while helping patients move from surgery to recovery. The Medical Devices segment’s products include post-operative pain management solutions, minimally invasive interventional (or chronic) pain therapies, closed airway suction systems and enteral feeding tubes. The S&IP segment includes product offerings, such as sterilization wrap, surgical drapes and gowns, facial protection, protective apparel and medical exam gloves.
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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