Investors are closely examining two distinct medical companies, ScripsAmerica and West Pharmaceutical Services, to determine which stock presents a more promising investment opportunity. This article compares them based on key metrics, including earnings strength, risk factors, institutional ownership, profitability, dividends, analyst recommendations, and overall valuation.
Institutional Ownership and Insights
A significant portion of West Pharmaceutical Services’ shares, approximately 93.9%, are held by institutional investors, signifying strong confidence from hedge funds and large money managers in the company’s long-term growth potential. In contrast, only 0.5% of ScripsAmerica’s shares are held by company insiders. This disparity highlights the market’s perception of stability and growth in these two firms.
Analyst Recommendations and Profitability
According to data from MarketBeat.com, analysts overwhelmingly favor West Pharmaceutical Services over ScripsAmerica. The metrics for profitability further underscore this preference. West Pharmaceutical boasts higher net margins, return on equity, and return on assets compared to ScripsAmerica, indicating a more robust financial performance and operational efficiency.
In terms of earnings and valuation, West Pharmaceutical also leads substantially. The company’s revenue and earnings per share (EPS) are significantly higher than those of ScripsAmerica, reinforcing its position as the more favorable investment.
Company Profiles
ScripsAmerica, founded in 2008 and based in Clifton, New Jersey, specializes in developing and selling non-sterile topical and transdermal pain relief products. The company also offers pharmacy dispensing services and distributes pharmaceutical products to independent pharmacies. However, ScripsAmerica has faced financial challenges, having filed for Chapter 11 bankruptcy on September 7, 2016, which was later converted to Chapter 7 on February 8, 2017.
On the other hand, West Pharmaceutical Services, established in 1923 and headquartered in Exton, Pennsylvania, operates in the containment and delivery systems for injectable drugs and healthcare products. The company has a diverse portfolio, offering proprietary products such as stoppers, seals, and self-injection devices, alongside contract-manufactured products utilized in various medical applications. West Pharmaceutical Services’ extensive distribution network and innovative solutions position it as a leader in the healthcare market.
In conclusion, West Pharmaceutical Services outperforms ScripsAmerica across all examined factors, including institutional backing, profitability, and overall market valuation. As investors weigh their options, the clear advantages held by West Pharmaceutical may guide decisions in the competitive medical sector.
