Head-To-Head Review: West Pharmaceutical Services (WST) & Female Health (VERU)

West Pharmaceutical Services (NYSE: WST) and Female Health (NASDAQ:VERU) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Insider and Institutional Ownership

94.4% of West Pharmaceutical Services shares are held by institutional investors. Comparatively, 4.2% of Female Health shares are held by institutional investors. 1.9% of West Pharmaceutical Services shares are held by insiders. Comparatively, 37.0% of Female Health shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.



Analyst Ratings

This is a breakdown of recent recommendations for West Pharmaceutical Services and Female Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
West Pharmaceutical Services 0 3 2 0 2.40
Female Health 0 0 2 0 3.00

West Pharmaceutical Services currently has a consensus price target of $106.80, suggesting a potential upside of 21.17%. Female Health has a consensus price target of $5.00, suggesting a potential upside of 170.27%. Given Female Health’s stronger consensus rating and higher possible upside, analysts plainly believe Female Health is more favorable than West Pharmaceutical Services.

Risk and Volatility

West Pharmaceutical Services has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Female Health has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.

Valuation and Earnings

This table compares West Pharmaceutical Services and Female Health’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
West Pharmaceutical Services $1.60 billion 4.08 $150.70 million $2.78 31.71
Female Health $13.66 million 7.25 -$6.61 million ($0.25) -7.40

West Pharmaceutical Services has higher revenue and earnings than Female Health. Female Health 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 Female Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
West Pharmaceutical Services 9.42% 14.68% 9.97%
Female Health -73.11% -17.63% -12.73%

Dividends

West Pharmaceutical Services pays an annual dividend of $0.56 per share and has a dividend yield of 0.6%. Female Health does not pay a dividend. West Pharmaceutical Services pays out 20.1% of its earnings in the form of a dividend. West Pharmaceutical Services has increased its dividend for 25 consecutive years.

Summary

West Pharmaceutical Services beats Female Health on 11 of the 16 factors compared between the two stocks.

West Pharmaceutical Services Company Profile

West Pharmaceutical Services, Inc. manufactures and sells containment and delivery systems for injectable drugs and healthcare products in the United States, Germany, France, Other European countries, and internationally. The company operates through 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, and washing and sterilization processes and services to enhance the quality of packaging components. It also provides drug containment solutions, including CZ, a cyclic olefin polymer in the form of vials, syringes, and cartridges; and self-injection devices, as well as specialized testing services for drug packaging, devices, and administration systems. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of components and devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. This segment serves pharmaceutical, diagnostic, and medical device companies. The company distributes its products through its sales force and distribution network, as well as contract sales agents and regional distributors. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Exton, Pennsylvania.

Female Health Company Profile

Veru Inc. operates as a urology and oncology biopharmaceutical company. The company operates through two segments, Commercial; and Research and Development. It offers FC2 Female Condom for unintended pregnancy and sexually transmitted infections, including HIV/AIDS and the Zika virus; and PREBOOST benzocaine medicated individual wipes for the prevention of premature ejaculation. The company's urology drug candidates include Tamsulosin delayed release sachet and Tamsulosin XR capsules that are under bioequivalence study for the treatment of benign prostatic hyperplasia; and Solifenacin delayed release granules, which are under bioequivalence study for the treatment of overactive bladder. Its urology drug candidates also comprise Tadalafil-Finasteride combination capsules that are under bioequivalence study for the treatment of men with lower urinary tract symptoms and enlarged prostate; VERU-944, which is in Phase II clinical trial for the treatment of hot flashes in men on prostate cancer hormonal therapies; and VERU-722 that is in Phase II clinical trial for the treatment of male infertility caused by testicular dysfunction. The company's oncology drug candidate is VERU-111, a novel oral alpha and beta tubulin inhibitor, which is under preclinical study for the treatment of metastatic prostate, breast, endometrial, ovarian, and other cancers. It also develops VERU-111/VERU-112, a novel oral agent targeting colchicine binding site that is under preclinical study for the treatment of gout and familial mediterranean fever. Veru Inc. serves agencies, non-government organizations, ministries of health, and other governmental agencies through distributors and retailers primarily in the United States, Brazil, Spain, France, and the United Kingdom. The company was formerly known as The Female Health Company and changed its name to Veru Inc. in July 2017. Veru Inc. was founded in 1896 and is headquartered in Miami, Florida.

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