H2O America (HTO)vsWest Pharmaceutical Services Inc (WST)
HTO
H2O America
$57.60
-0.66%
UTILITIES · Cap: $2.37B
WST
West Pharmaceutical Services Inc
$312.55
+0.83%
HEALTHCARE · Cap: $21.24B
Smart Verdict
WallStSmart Research — data-driven comparison
West Pharmaceutical Services Inc generates 295% more annual revenue ($3.22B vs $816.28M). WST leads profitability with a 16.9% profit margin vs 12.9%. HTO appears more attractively valued with a PEG of 2.51. WST earns a higher WallStSmart Score of 67/100 (B-).
HTO
Buy57
out of 100
Grade: C
WST
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.5%
Fair Value
$76.99
Current Price
$57.60
$19.39 discount
Margin of Safety
-32.8%
Fair Value
$185.39
Current Price
$312.55
$127.16 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 21.5%
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
0.0% earnings growth
ROE of 6.5% — below average capital efficiency
Expensive relative to growth rate
Negative free cash flow — burning cash
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
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 : HTO
The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.
Bear Case : WST
The primary concerns for WST are PEG Ratio, P/E Ratio. A P/E of 40.1x leaves little room for execution misses.
Key Dynamics to Monitor
HTO profiles as a value stock while WST is a growth play — different risk/reward profiles.
WST carries more volatility with a beta of 1.15 — expect wider price swings.
WST is growing revenue faster at 21.0% — sustainability is the question.
WST generates stronger free cash flow (47M), providing more financial flexibility.
Bottom Line
WST scores higher overall (67/100 vs 57/100), backed by strong 16.9% margins and 21.0% revenue growth. HTO offers better value entry with a 32.5% margin of safety. Both earn "Strong 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.
H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
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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