Cardinal Health Inc (CAH)vsWest Pharmaceutical Services Inc (WST)
CAH
Cardinal Health Inc
$183.65
-0.88%
HEALTHCARE · Cap: $43.39B
WST
West Pharmaceutical Services Inc
$325.92
+1.21%
HEALTHCARE · Cap: $22.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Cardinal Health Inc generates 7684% more annual revenue ($250.74B vs $3.22B). WST leads profitability with a 16.9% profit margin vs 0.6%. CAH appears more attractively valued with a PEG of 1.25. WST earns a higher WallStSmart Score of 67/100 (B-).
CAH
Hold47
out of 100
Grade: D+
WST
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.9%
Fair Value
$859.62
Current Price
$183.65
$675.97 discount
Margin of Safety
-32.4%
Fair Value
$185.95
Current Price
$325.92
$139.97 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Generating 1.7B in free cash flow
Earnings expanding 56.1% YoY
Safe zone — low bankruptcy risk
Strong operational efficiency at 21.7%
Revenue surging 21.0% year-over-year
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
0.6% margin — thin
Operating margin of 1.4%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CAH
The strongest argument for CAH centers on Altman Z-Score, Free Cash Flow. Revenue growth of 11.0% demonstrates continued momentum. PEG of 1.25 suggests the stock is reasonably priced for its 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 : CAH
The primary concerns for CAH are P/E Ratio, Return on Equity, Profit Margin. Thin 0.6% margins leave little buffer for downturns.
Bear Case : WST
The primary concerns for WST are PEG Ratio, P/E Ratio. A P/E of 41.8x leaves little room for execution misses.
Key Dynamics to Monitor
CAH profiles as a value 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.
CAH generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
WST scores higher overall (67/100 vs 47/100), backed by strong 16.9% margins and 21.0% revenue growth. CAH offers better value entry with a 73.9% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cardinal Health Inc
HEALTHCARE · MEDICAL DISTRIBUTION · USA
Cardinal Health, Inc. is an American multinational health care services company.
Visit Website →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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