Investors often seek the best opportunities in the medical sector, and two companies currently under scrutiny are Scripsamerica and West Pharmaceutical Services. This article provides a detailed comparison of the two firms based on earnings strength, risk factors, institutional ownership, profitability, dividends, analyst recommendations, and valuation metrics.
Institutional Ownership and Insider Holdings
Institutional investors hold a significant stake in West Pharmaceutical Services, with approximately 93.9% of shares owned by these entities. This strong institutional backing indicates confidence from hedge funds and large investors regarding the company’s long-term growth potential. In contrast, only 0.5% of West Pharmaceutical Services shares are held by company insiders, suggesting that internal ownership is relatively low.
Analyst Recommendations and Profitability Metrics
Analysts have provided various ratings for both companies. According to data from MarketBeat.com, West Pharmaceutical Services outperforms Scripsamerica across multiple metrics. Profitability comparisons reveal that West Pharmaceutical Services boasts superior net margins, return on equity, and return on assets when juxtaposed with Scripsamerica. This indicates a more robust financial health for West Pharmaceutical Services.
Earnings performance is another critical area of comparison. West Pharmaceutical Services reports higher revenue and earnings per share (EPS) than Scripsamerica. These figures solidify the former’s standing as a more appealing investment option.
Company Profiles and Historical Context
Founded in 2008, Scripsamerica, Inc. specializes in developing and selling non-sterile topical and transdermal pain creams. The company also offers pharmacy dispensing services and distributes pharmaceutical products to independent pharmacies. Notably, Scripsamerica faced significant financial challenges, filing for Chapter 11 bankruptcy on September 7, 2016, before converting its reorganization petition to Chapter 7 on February 8, 2017.
In contrast, West Pharmaceutical Services, Inc., established in 1923, operates globally, manufacturing containment and delivery systems for injectable drugs. The company is divided into two segments: Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment focuses on injectable packaging systems, while the Contract-Manufactured Products segment designs and assembles devices for various medical applications.
By assessing institutional ownership, analyst recommendations, profitability, and the fundamental histories of both companies, it is evident that West Pharmaceutical Services maintains a stronger market position compared to Scripsamerica. The latter has struggled with financial instability, while West Pharmaceutical Services continues to thrive in a competitive market.
In summary, West Pharmaceutical Services surpasses Scripsamerica in all ten major factors evaluated, making it a more favorable choice for investors seeking stability and growth in the medical sector.
