West Pharmaceutical Services (NYSE:WST – Get Rating) and KORU Medical Systems (NASDAQ:KRMD – Get Rating) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
Profitability
This table compares West Pharmaceutical Services and KORU Medical Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| West Pharmaceutical Services | 19.15% | 24.14% | 17.83% |
| KORU Medical Systems | -29.39% | -26.19% | -19.95% |
Institutional and Insider Ownership
91.5% of West Pharmaceutical Services shares are held by institutional investors. Comparatively, 36.1% of KORU Medical Systems shares are held by institutional investors. 1.1% of West Pharmaceutical Services shares are held by company insiders. Comparatively, 25.6% of KORU Medical Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| West Pharmaceutical Services | $2.89 billion | 8.83 | $585.90 million | $7.28 | 47.18 |
| KORU Medical Systems | $27.90 million | 6.05 | -$8.66 million | ($0.19) | -19.47 |
West Pharmaceutical Services has higher revenue and earnings than KORU Medical Systems. KORU Medical Systems 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.
Analyst Ratings
This is a summary of recent ratings and price targets for West Pharmaceutical Services and KORU Medical Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| West Pharmaceutical Services | 0 | 3 | 2 | 0 | 2.40 |
| KORU Medical Systems | 0 | 0 | 3 | 0 | 3.00 |
West Pharmaceutical Services currently has a consensus price target of $313.00, indicating a potential downside of 8.88%. KORU Medical Systems has a consensus price target of $4.17, indicating a potential upside of 12.61%. Given KORU Medical Systems’ stronger consensus rating and higher probable upside, analysts plainly believe KORU Medical Systems is more favorable than West Pharmaceutical Services.
Risk and Volatility
West Pharmaceutical Services has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, KORU Medical Systems has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.
Summary
West Pharmaceutical Services beats KORU Medical Systems on 10 of the 14 factors compared between the two stocks.
About West Pharmaceutical Services
West Pharmaceutical Services, Inc. manufactures and markets pharmaceuticals, biologics, vaccines and consumer healthcare products. It operates through the following business segments: Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers proprietary packaging, containment and drug delivery products, along with analytical lab services, to biologic, generic and pharmaceutical drug customers. The Contract-Manufactured Products segment serves as a fully integrated business, focused on the design, manufacture and automated assembly of complex devices, primarily for pharmaceutical, diagnostic, and medical device customers. The company was founded by Herman O. West on July 27, 1923 and is headquartered in Exton, PA.
About KORU Medical Systems
KORU Medical Systems, Inc. engages in the design, manufacture, and market of proprietary medical devices. Its product portfolio includes FREEDOM60, FreedomEdge syringe drivers, Precision Flow Rate Tubing, and HIgH-Flo Subcutaneous Safety Needle Sets. The company was founded by Andrew I. Sealfon and Adrian W. Zorgniotti on March 24, 1980 and is headquartered in Mahwah, NJ.
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