Merit Medical Systems (NASDAQ:MMSI) vs. West Pharmaceutical Services (NYSE:WST) Financial Survey

West Pharmaceutical Services (NYSE:WST) and Merit Medical Systems (NASDAQ:MMSI) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares West Pharmaceutical Services and Merit Medical Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West Pharmaceutical Services	16.29%	18.16%	13.45%
Merit Medical Systems	8.02%	14.27%	8.23%

Insider & Institutional Ownership

93.9% of West Pharmaceutical Services shares are owned by institutional investors. Comparatively, 99.7% of Merit Medical Systems shares are owned by institutional investors. 0.5% of West Pharmaceutical Services shares are owned by company insiders. Comparatively, 3.2% of Merit Medical Systems shares are owned by company 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 Merit Medical Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West Pharmaceutical Services	$2.89 billion	6.64	$492.70 million	$6.75	39.56
Merit Medical Systems	$1.36 billion	3.79	$120.36 million	$1.95	44.46

West Pharmaceutical Services has higher revenue and earnings than Merit Medical Systems. West Pharmaceutical Services is trading at a lower price-to-earnings ratio than Merit Medical Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for West Pharmaceutical Services and Merit Medical Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Pharmaceutical Services	0	4	8	2	2.86
Merit Medical Systems	0	2	8	0	2.80

West Pharmaceutical Services presently has a consensus price target of $342.20, suggesting a potential upside of 28.15%. Merit Medical Systems has a consensus price target of $104.50, suggesting a potential upside of 20.53%. Given West Pharmaceutical Services’ stronger consensus rating and higher probable upside, research analysts clearly believe West Pharmaceutical Services is more favorable than Merit Medical Systems.

Risk & Volatility

West Pharmaceutical Services has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Merit Medical Systems has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Summary

West Pharmaceutical Services beats Merit Medical Systems on 11 of the 14 factors compared between the two stocks.

About West Pharmaceutical Services

West Pharmaceutical Services, Inc. designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers stoppers and seals for injectable packaging systems; syringe and cartridge components, including custom solutions for the needs of injectable drug applications, as well as administration systems that enhance the safe delivery of drugs through advanced reconstitution, mixing, and transfer technologies; and films, coatings, washing, and vision inspection and sterilization processes and services to enhance the quality of packaging components. This segment also provides drug containment solutions, including Crystal Zenith, a cyclic olefin polymer in the form of vials, syringes, and cartridges; and self-injection devices; and a range of integrated solutions, including analytical lab services, pre-approval primary packaging support and engineering development, regulatory expertise, and after-sales technical support. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. The company serves pharmaceutical, diagnostic, and medical device companies. It sells and distributes its products through its sales force and distribution network, contract sales agents, and regional distributors. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Exton, Pennsylvania.

About Merit Medical Systems

Merit Medical Systems, Inc. designs, develops, manufactures, and markets single-use medical products for interventional, diagnostic, and therapeutic procedures in the United States and internationally. It operates in two segments, Cardiovascular and Endoscopy. The company provides micropuncture kits, angiographic needles, sheaths, guide wires, and safety products; peripheral intervention, including angiography, drainage, delivery systems, and embolotherapy products; spine products, such as vertebral augmentation, radiofrequency ablation, and bone biopsy systems; oncology products; and cardiac intervention products, such as access, angiography, electrophysiology and cardiac rhythm management, fluid management, hemodynamic monitoring, hemostasis, and intervention to treat various heart conditions. It also offers custom procedural solutions that include critical care products, disinfection protection systems, syringes, manifold kits, and trays and packs; coating services for medical tubes and wires; and sensor components for microelectromechanical systems. In addition, the company provides pulmonary products that consist of laser-cut tracheobronchial stents, over-the-wire and direct visualization delivery systems, and dilation balloons to endoscopically dilate structures; gastroenterology products, such as covered esophageal stents, syringe and gauges, and balloon dilators; and kits and accessories for endoscopy and bronchoscopy procedures. It sells its products to hospitals and alternate site-based physicians, technicians, and nurses through direct sales force, distributors, original equipment manufacturer partners, or custom procedure tray manufacturers. The company was incorporated in 1987 and is headquartered in South Jordan, Utah.