WallStSmart

Baxter International Inc (BAX)vsWest Pharmaceutical Services Inc (WST)

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Smart Verdict

WallStSmart Research — data-driven comparison

Baxter International Inc generates 251% more annual revenue ($11.32B vs $3.22B). WST leads profitability with a 16.9% profit margin vs -9.7%. WST appears more attractively valued with a PEG of 3.14. WST earns a higher WallStSmart Score of 65/100 (C+).

BAX

Buy

51

out of 100

Grade: C-

Growth: 6.0Profit: 3.5Value: 5.7Quality: 6.0
Piotroski: 4/9Altman Z: 1.98

WST

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 2.7Quality: 7.3
Piotroski: 5/9Altman Z: 4.91
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BAXUndervalued (+63.1%)

Margin of Safety

+63.1%

Fair Value

$60.34

Current Price

$17.53

$42.81 discount

UndervaluedFair: $60.34Overvalued
WSTSignificantly Overvalued (-32.4%)

Margin of Safety

-32.4%

Fair Value

$185.95

Current Price

$322.30

$136.35 premium

UndervaluedFair: $185.95Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BAX2 strengths · Avg: 10.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
237.9%10/10

Earnings expanding 237.9% YoY

WST4 strengths · Avg: 9.0/10
EPS GrowthGrowth
56.1%10/10

Earnings expanding 56.1% YoY

Altman Z-ScoreHealth
4.9110/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
21.7%8/10

Strong operational efficiency at 21.7%

Revenue GrowthGrowth
21.0%8/10

Revenue surging 21.0% year-over-year

Areas to Watch

BAX4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Debt/EquityHealth
1.603/10

Elevated debt levels

PEG RatioValuation
36.682/10

Expensive relative to growth rate

WST2 concerns · Avg: 2.0/10
PEG RatioValuation
3.142/10

Expensive relative to growth rate

P/E RatioValuation
43.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : BAX

The strongest argument for BAX centers on Price/Book, EPS Growth.

Bull Case : WST

The strongest argument for WST centers on EPS Growth, Altman Z-Score, Operating Margin. Profitability is solid with margins at 16.9% and operating margin at 21.7%. Revenue growth of 21.0% demonstrates continued momentum.

Bear Case : BAX

The primary concerns for BAX are Revenue Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 1.60 is elevated, increasing financial risk.

Bear Case : WST

The primary concerns for WST are PEG Ratio, P/E Ratio. A P/E of 43.5x leaves little room for execution misses.

Key Dynamics to Monitor

BAX profiles as a turnaround stock while WST is a growth play — different risk/reward profiles.

WST carries more volatility with a beta of 1.17 — expect wider price swings.

WST is growing revenue faster at 21.0% — sustainability is the question.

BAX generates stronger free cash flow (76M), providing more financial flexibility.

Bottom Line

WST scores higher overall (65/100 vs 51/100), backed by strong 16.9% margins and 21.0% revenue growth. BAX offers better value entry with a 63.1% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Baxter International Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Baxter International Inc. is an American multinational health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions.

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West Pharmaceutical Services Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.

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