Comparing Great Basin Scientific (GBSN) & West Pharmaceutical Services (WST)
Great Basin Scientific (NASDAQ: GBSN) and West Pharmaceutical Services (NYSE:WST) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Earnings and Valuation
This table compares Great Basin Scientific and West Pharmaceutical Services’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Great Basin Scientific||$3.15 million||0.06||-$30.80 million||N/A||N/A|
|West Pharmaceutical Services||$1.54 billion||4.44||$317.90 million||$2.34||39.49|
West Pharmaceutical Services has higher revenue and earnings than Great Basin Scientific.
This is a summary of current recommendations and price targets for Great Basin Scientific and West Pharmaceutical Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Great Basin Scientific||0||0||0||0||N/A|
|West Pharmaceutical Services||0||2||3||0||2.60|
West Pharmaceutical Services has a consensus target price of $104.00, suggesting a potential upside of 12.54%. Given West Pharmaceutical Services’ higher possible upside, analysts clearly believe West Pharmaceutical Services is more favorable than Great Basin Scientific.
This table compares Great Basin Scientific and West Pharmaceutical Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Great Basin Scientific||2,588.36%||N/A||168.06%|
|West Pharmaceutical Services||11.42%||14.02%||9.32%|
Institutional and Insider Ownership
90.2% of West Pharmaceutical Services shares are held by institutional investors. 1.9% of West Pharmaceutical Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Great Basin Scientific has a beta of 5.09, meaning that its share price is 409% more volatile than the S&P 500. Comparatively, West Pharmaceutical Services has a beta of 1.12, meaning that its share price is 12% 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%. Great Basin Scientific does not pay a dividend. West Pharmaceutical Services pays out 23.9% of its earnings in the form of a dividend. Great Basin Scientific has increased its dividend for 24 consecutive years.
West Pharmaceutical Services beats Great Basin Scientific on 9 of the 14 factors compared between the two stocks.
About Great Basin Scientific
Great Basin Scientific, Inc. is a molecular diagnostic testing company. The Company is focused on the development and commercialization of its molecular diagnostic platform designed to test for infectious diseases, especially hospital-acquired infections. Its commercially available tests are clostridium difficile (C. diff) and Group B Strep. Its system includes an analyzer and a diagnostic cartridge. Each analyzer contains a module into, which individual test cartridges are placed. Its other diagnostic assays in the late stages of product development include a pre-surgical nasal screen for Staphylococcus aureus (SA), food borne pathogen panel, panel for candida blood infections, test for pertussis and a test for Chlamydia tracomatis (CT)/Neisseria gonorrhea (NG). The Company also has a pipeline of assays in an early stage of development, including respiratory testing and sepsis (blood infection) panels. It markets a platform of molecular testing in small to medium sized hospitals.
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.
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