Quipt Home Medical (NASDAQ:QIPT – Get Free Report) and West Pharmaceutical Services (NYSE:WST – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.
Earnings and Valuation
This table compares Quipt Home Medical and West Pharmaceutical Services’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quipt Home Medical | $221.74 million | 0.62 | -$2.78 million | ($0.10) | -32.20 |
| West Pharmaceutical Services | $2.95 billion | 8.13 | $593.40 million | $7.58 | 43.44 |
West Pharmaceutical Services has higher revenue and earnings than Quipt Home Medical. Quipt Home Medical 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
| Net Margins | Return on Equity | Return on Assets | |
| Quipt Home Medical | -1.71% | -3.89% | -1.76% |
| West Pharmaceutical Services | 19.42% | 20.57% | 15.47% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Quipt Home Medical and West Pharmaceutical Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quipt Home Medical | 1 | 0 | 3 | 1 | 2.80 |
| West Pharmaceutical Services | 0 | 1 | 3 | 0 | 2.75 |
Quipt Home Medical presently has a consensus price target of $7.25, indicating a potential upside of 125.16%. West Pharmaceutical Services has a consensus price target of $442.75, indicating a potential upside of 34.47%. Given Quipt Home Medical’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Quipt Home Medical is more favorable than West Pharmaceutical Services.
Insider and Institutional Ownership
42.9% of Quipt Home Medical shares are owned by institutional investors. Comparatively, 93.9% of West Pharmaceutical Services shares are owned by institutional investors. 4.2% of Quipt Home Medical shares are owned by company insiders. Comparatively, 0.5% 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.
Volatility & Risk
Quipt Home Medical has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, West Pharmaceutical Services has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
Summary
West Pharmaceutical Services beats Quipt Home Medical on 9 of the 13 factors compared between the two stocks.
About Quipt Home Medical
Quipt Home Medical Corp., through its subsidiaries, engages in the provision of durable and home medical equipment and supplies in the United States. The company offers nebulizers, oxygen concentrators, and CPAP and BiPAP units; traditional and non-traditional durable medical respiratory equipment and services; non-invasive ventilation equipment, supplies, and services; and engages in the rental of medical equipment. It offers management of various chronic disease states focusing on patients with heart and pulmonary disease, sleep apnea, reduced mobility, and other chronic health conditions. The company was formerly known as Protech Home Medical Corp. and changed its name to Quipt Home Medical Corp. in May 2021. Quipt Home Medical Corp. is headquartered in Wilder, Kentucky.
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.
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