West Pharmaceutical Services (NYSE:WST) vs. STRATA Skin Sciences (NASDAQ:SSKN) Head-To-Head Comparison

West Pharmaceutical Services (NYSE:WST) and STRATA Skin Sciences (NASDAQ:SSKN) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for West Pharmaceutical Services and STRATA Skin Sciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Pharmaceutical Services	0	1	3	0	2.75
STRATA Skin Sciences	0	0	0	0	N/A

West Pharmaceutical Services currently has a consensus target price of $442.75, suggesting a potential upside of 34.67%. STRATA Skin Sciences has a consensus target price of $38.00, suggesting a potential upside of 1,121.86%. Given STRATA Skin Sciences’ higher probable upside, analysts clearly believe STRATA Skin Sciences is more favorable than West Pharmaceutical Services.

Earnings & Valuation

This table compares West Pharmaceutical Services and STRATA Skin Sciences’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West Pharmaceutical Services	$2.95 billion	8.12	$593.40 million	$7.58	43.37
STRATA Skin Sciences	$33.36 million	0.33	-$10.83 million	($3.30)	-0.94

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

Profitability

This table compares West Pharmaceutical Services and STRATA Skin Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West Pharmaceutical Services	19.42%	20.57%	15.47%
STRATA Skin Sciences	-34.92%	-65.76%	-19.69%

Volatility and Risk

West Pharmaceutical Services has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, STRATA Skin Sciences has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Insider & Institutional Ownership

93.9% of West Pharmaceutical Services shares are owned by institutional investors. Comparatively, 32.4% of STRATA Skin Sciences shares are owned by institutional investors. 0.5% of West Pharmaceutical Services shares are owned by company insiders. Comparatively, 40.4% of STRATA Skin Sciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

West Pharmaceutical Services beats STRATA Skin Sciences on 10 of the 13 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 STRATA Skin Sciences

STRATA Skin Sciences, Inc., a medical technology company, develops, commercializes, and markets products for the treatment of dermatologic conditions in the United States, Europe, the Middle East, Asia, Australia, South Africa, and Central and South America. The company operates in two segments, Dermatology Recurring Procedures and Dermatology Procedures Equipment. The company products include XTRAC and Pharos excimer lasers, and VTRAC lamp systems for the treatment systems that are used for the treatment of psoriasis, vitiligo, and other skin conditions. It also offers TheraClear Acne Therapy System for the treatment of mild to moderate inflammatory, comedonal, and pustular acne. The company was formerly known as MELA Sciences, Inc and changed its name to STRATA Skin Sciences, Inc. in January 2016. STRATA Skin Sciences, Inc. was incorporated in 1989 and is based in Horsham, Pennsylvania.