Critical Survey: West Pharmaceutical Services (WST) versus Carlisle Companies (CSL)

West Pharmaceutical Services (NYSE: WST) and Carlisle Companies (NYSE:CSL) are both mid-cap 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, valuation, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for West Pharmaceutical Services and Carlisle Companies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
West Pharmaceutical Services 1 2 2 0 2.20
Carlisle Companies 0 2 6 0 2.75

West Pharmaceutical Services presently has a consensus price target of $104.20, suggesting a potential upside of 17.85%. Carlisle Companies has a consensus price target of $122.86, suggesting a potential upside of 16.40%. Given West Pharmaceutical Services’ higher probable upside, research analysts plainly believe West Pharmaceutical Services is more favorable than Carlisle Companies.

Risk & Volatility

West Pharmaceutical Services has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Carlisle Companies has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Insider and Institutional Ownership

92.7% of West Pharmaceutical Services shares are owned by institutional investors. Comparatively, 91.2% of Carlisle Companies shares are owned by institutional investors. 1.9% of West Pharmaceutical Services shares are owned by company insiders. Comparatively, 2.4% of Carlisle Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares West Pharmaceutical Services and Carlisle Companies’ 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 4.07 $150.70 million $2.78 31.81
Carlisle Companies $4.09 billion 1.57 $365.50 million $5.53 19.09

Carlisle Companies has higher revenue and earnings than West Pharmaceutical Services. Carlisle Companies 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 Carlisle Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
West Pharmaceutical Services 8.20% 14.40% 9.87%
Carlisle Companies 14.48% 12.97% 6.81%

Dividends

West Pharmaceutical Services pays an annual dividend of $0.56 per share and has a dividend yield of 0.6%. Carlisle Companies pays an annual dividend of $1.48 per share and has a dividend yield of 1.4%. West Pharmaceutical Services pays out 20.1% of its earnings in the form of a dividend. Carlisle Companies pays out 26.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. West Pharmaceutical Services has raised its dividend for 25 consecutive years and Carlisle Companies has raised its dividend for 41 consecutive years. Carlisle Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Carlisle Companies beats West Pharmaceutical Services on 9 of the 17 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.

Carlisle Companies Company Profile

Carlisle Companies Incorporated operates as a diversified manufacturing company. The company's Carlisle Construction Materials segment provides insulation materials; thermoplastic polyolefin, ehtylene propylene diene monomer rubber, and polyvinyl chloride roofing membranes that are used on non-residential low-sloped roofs; roofing accessories, such as flashings, fasteners, sealing tapes, coatings, and waterproofing products; rigid foam insulation panels for roofing applications; and specialty polyurethane products and solutions for various markets and applications. Its Carlisle Interconnect Technologies segment designs, manufactures, and sells wires, cables, connectors, contacts, and cable assemblies and satellite communication equipment to transfer power and data for the aerospace, medical, defense electronics, test and measurement equipment, and other industrial markets. The company's Carlisle FoodService Products segment offers commercial and institutional foodservice permanentware, table coverings, cookware, catering equipment, fiberglass and composite material trays and dishes, industrial brooms, brushes, mops, and rotary brushes for commercial and non-commercial foodservice operators, and sanitary maintenance professionals. Its Carlisle Fluid Technologies segment provides liquid and powder finishing equipment and system components primarily in the automotive, automotive refinishing, aerospace, agriculture, construction, marine, and rail industries. The company's Carlisle Brake & Friction segment offers braking products and systems, and clutch transmission friction products for off-highway, on-highway, aircraft, and other industrial applications; and motorsport braking products. The company markets its products in the United States, Europe, Asia, Canada, Mexico, Latin America, the Middle East, Africa, and internationally. Carlisle Companies Incorporated was founded in 1917 and is headquartered in Scottsdale, Arizona.

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