Orthofix International (NASDAQ: OFIX) and West Pharmaceutical Services (NYSE:WST) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.
Insider & Institutional Ownership
94.6% of Orthofix International shares are held by institutional investors. Comparatively, 93.3% of West Pharmaceutical Services shares are held by institutional investors. 5.6% of Orthofix International shares are held by insiders. Comparatively, 1.9% of West Pharmaceutical Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Orthofix International and West Pharmaceutical Services’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Orthofix International||$409.79 million||2.44||$3.05 million||$0.02||2,748.00|
|West Pharmaceutical Services||$1.51 billion||4.89||$143.60 million||$2.51||39.60|
West Pharmaceutical Services has higher revenue and earnings than Orthofix International. West Pharmaceutical Services is trading at a lower price-to-earnings ratio than Orthofix International, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Orthofix International has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, West Pharmaceutical Services has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
West Pharmaceutical Services pays an annual dividend of $0.56 per share and has a dividend yield of 0.6%. Orthofix International 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 raised its dividend for 24 consecutive years.
This is a breakdown of recent recommendations and price targets for Orthofix International and West Pharmaceutical Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|West Pharmaceutical Services||0||2||2||0||2.50|
Orthofix International currently has a consensus price target of $53.30, suggesting a potential downside of 3.02%. West Pharmaceutical Services has a consensus price target of $106.00, suggesting a potential upside of 6.65%. Given West Pharmaceutical Services’ higher possible upside, analysts clearly believe West Pharmaceutical Services is more favorable than Orthofix International.
This table compares Orthofix International 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%|
West Pharmaceutical Services beats Orthofix International on 11 of the 17 factors compared between the two stocks.
About Orthofix International
Orthofix International N.V. (Orthofix) is a global medical device company. The Company is focused on providing reconstructive and regenerative orthopedic and spine solutions to physicians. The company operates in four segments: BioStim, Biologics, Extremity Fixation and Spine Fixation. Its BioStim solutions products include Cervical-Stim, Spinal-Stim and Physio-Stim. The Biologics products include AlloQuent Structural Allografts, Trinity ELITE, Trinity Evolution and VersaShield. The Extremity Fixation products include Fixator, Eight-Plate Guided Growth System and Contours VPS Volar Plating System III. The Spine Fixation products include Hallmark Anterior Cervical Plate System, Ascent LE Posterior Occipital Cervico-Thoracic (POCT) System, Firebird Deformity Correction System, Phoenix Minimally Invasive Spinal Fixation System, Samba-Screw System, LONESTAR Cervical Stand Alone (CSA), SKYHAWK Lateral Interbody Fusion System & Lateral Plate System and CENTURION POCT System.
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.
What are top analysts saying about Orthofix International? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Orthofix International and related companies.