Spectral Medical (OTCMKTS:EDTXF – Get Free Report) and West Pharmaceutical Services (NYSE:WST – Get Free Report) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
Profitability
This table compares Spectral Medical and West Pharmaceutical Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Spectral Medical | -1,245.87% | N/A | -351.89% |
| West Pharmaceutical Services | 17.37% | 18.41% | 13.74% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Spectral Medical and West Pharmaceutical Services, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Spectral Medical | 0 | 0 | 0 | 0 | 0.00 |
| West Pharmaceutical Services | 0 | 1 | 4 | 0 | 2.80 |
Institutional & Insider Ownership
93.9% of West Pharmaceutical Services shares are held by institutional investors. 1.5% of Spectral Medical shares are held by insiders. Comparatively, 0.5% of West Pharmaceutical Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Spectral Medical and West Pharmaceutical Services”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Spectral Medical | $1.18 million | 102.21 | -$11.60 million | ($0.07) | -6.06 |
| West Pharmaceutical Services | $2.95 billion | 7.92 | $593.40 million | $6.74 | 47.83 |
West Pharmaceutical Services has higher revenue and earnings than Spectral Medical. Spectral 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.
Risk and Volatility
Spectral Medical has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, West Pharmaceutical Services has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
Summary
West Pharmaceutical Services beats Spectral Medical on 12 of the 14 factors compared between the two stocks.
About Spectral Medical
Spectral Medical Inc. focuses on the development and commercialization of products for the treatment of septic shock in the United States, Italy, Ireland, and internationally. The company markets Endotoxin Activity Assay, a rapid in vitro diagnostic test for the detection of components of gram negative bacterial cell wall; and Polymyxin B Hemoperfusion, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream. It also develops and manufactures monoclonal and polyclonal antibodies, recombinant cardiac proteins, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was incorporated in 1991 and is headquartered in Toronto, Canada.
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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