CryoLife (NYSE: CRY) and West Pharmaceutical Services (NYSE:WST) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Volatility and Risk
CryoLife has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, West Pharmaceutical Services has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.
This table compares CryoLife 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%|
Valuation and Earnings
This table compares CryoLife and West Pharmaceutical Services’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|CryoLife||$180.38 million||3.56||$10.77 million||$0.28||68.57|
|West Pharmaceutical Services||$1.51 billion||4.87||$143.60 million||$2.51||39.43|
West Pharmaceutical Services has higher revenue and earnings than CryoLife. West Pharmaceutical Services is trading at a lower price-to-earnings ratio than CryoLife, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for CryoLife 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|
CryoLife presently has a consensus price target of $23.63, suggesting a potential upside of 23.05%. West Pharmaceutical Services has a consensus price target of $106.00, suggesting a potential upside of 7.11%. Given CryoLife’s stronger consensus rating and higher probable upside, equities research analysts clearly believe CryoLife is more favorable than West Pharmaceutical Services.
West Pharmaceutical Services pays an annual dividend of $0.56 per share and has a dividend yield of 0.6%. CryoLife does not pay a dividend. West Pharmaceutical Services pays out 22.3% of its earnings in the form of a dividend. CryoLife has increased its dividend for 4 consecutive years and West Pharmaceutical Services has increased its dividend for 24 consecutive years.
Insider and Institutional Ownership
70.3% of CryoLife shares are owned by institutional investors. Comparatively, 91.8% of West Pharmaceutical Services shares are owned by institutional investors. 6.0% of CryoLife 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, large money managers and endowments believe a stock will outperform the market over the long term.
West Pharmaceutical Services beats CryoLife on 11 of the 17 factors compared between the two stocks.
CryoLife Company Profile
CryoLife, Inc. (CryoLife) is a medical device manufacturer and processor, and is engaged in the distribution of medical devices and implantable human tissues used in cardiac surgical procedures. The Company operates through two segments: Medical Devices and Preservation Services. The Medical Devices segment includes medical devices, such as BioGlue Surgical Adhesive, BioFoam Surgical Matrix, On-X Life Technologies Holdings, Inc. valves and surgical products, CardioGenesis cardiac laser therapy product line, PerClot and PhotoFix. PhotoFix is a pericardial patch stabilized using a dye-mediated photo-fixation process that requires no glutaraldehyde. The Preservation Services segment includes external services, such as preservation of cardiac and vascular tissues. The cardiac and vascular human tissues distributed by CryoLife include the CryoValve SG pulmonary heart valve and the CryoPatch SG pulmonary cardiac patch, both of which are processed using CryoLife’s SynerGraft technology.
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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