West Pharmaceutical Services Inc (WST)vsEssential Utilities Inc (WTRG)
WST
West Pharmaceutical Services Inc
$312.55
+0.83%
HEALTHCARE · Cap: $21.24B
WTRG
Essential Utilities Inc
$37.54
+0.13%
UTILITIES · Cap: $10.77B
Smart Verdict
WallStSmart Research — data-driven comparison
West Pharmaceutical Services Inc generates 30% more annual revenue ($3.22B vs $2.47B). WTRG leads profitability with a 24.9% profit margin vs 16.9%. WST appears more attractively valued with a PEG of 2.89. WST earns a higher WallStSmart Score of 67/100 (B-).
WST
Strong Buy67
out of 100
Grade: B-
WTRG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.8%
Fair Value
$185.39
Current Price
$312.55
$127.16 premium
Margin of Safety
+47.4%
Fair Value
$71.13
Current Price
$37.54
$33.59 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 56.1% YoY
Safe zone — low bankruptcy risk
Strong operational efficiency at 21.7%
Revenue surging 21.0% year-over-year
Strong operational efficiency at 32.4%
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
15.7% revenue growth
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 30.0%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.
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.
Bear Case : WTRG
The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
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.
Monitor MEDICAL INSTRUMENTS & SUPPLIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WST scores higher overall (67/100 vs 60/100), backed by strong 16.9% margins and 21.0% revenue growth. WTRG offers better value entry with a 47.4% 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.
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.
Essential Utilities Inc
UTILITIES · UTILITIES - REGULATED WATER · USA
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
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