Investors looking for opportunities in the medical sector are evaluating the potential of two companies: Scripsamerica and West Pharmaceutical Services. This article compares their financial health, institutional ownership, profitability, and overall market positioning to determine which stock might present a more attractive investment option.
Institutional and Insider Ownership
A significant factor in assessing a company’s stability is the level of institutional ownership. West Pharmaceutical Services, traded on the NYSE under the ticker symbol WST, boasts an impressive 93.9% of its shares held by institutional investors. This strong backing indicates confidence from hedge funds, endowments, and large money managers regarding the company’s potential for long-term growth. In contrast, only 0.5% of Scripsamerica shares are owned by company insiders, which may raise concerns about the level of confidence within the company itself.
Analyst Recommendations and Profitability
When it comes to analyst endorsements, MarketBeat.com provides insight into the current ratings of both companies. Analysts generally favor West Pharmaceutical Services, reflecting its stronger financial fundamentals. The profitability metrics further emphasize this point. Scripsamerica has struggled with its net margins and return on equity, while West Pharmaceutical Services consistently reports robust earnings and a reliable return on assets.
In terms of financial performance, West Pharmaceutical Services outperforms Scripsamerica across various metrics, including top-line revenue and earnings per share (EPS). This financial strength positions West Pharmaceutical Services favorably within the industry.
Company Profiles and Market Operations
Founded in 2008 and based in Clifton, New Jersey, Scripsamerica develops and sells non-sterile topical and transdermal pain creams. It also provides pharmacy dispensing services and distributes pharmaceutical products to independent pharmacies. However, the company faced significant challenges, filing for Chapter 11 bankruptcy on September 7, 2016, which was later converted to Chapter 7 on February 8, 2017. This history raises questions about its future viability.
On the other hand, West Pharmaceutical Services, established in 1923 and headquartered in Exton, Pennsylvania, designs and manufactures containment and delivery systems for injectable drugs. The company’s operations are divided into two segments: Proprietary Products and Contract-Manufactured Products. This diversified approach allows it to serve a wide range of clients, including pharmaceutical, diagnostic, and medical device companies.
Conclusion
In summary, West Pharmaceutical Services surpasses Scripsamerica in all evaluated categories. With its strong institutional support, impressive profitability metrics, and a stable market position, West Pharmaceutical Services appears to be a more sound investment. As investors weigh their options, the significant differences in financial health and market operations between these two companies are critical to consider.
