Baxter International Inc (BAX)vsWest Pharmaceutical Services Inc (WST)
BAX
Baxter International Inc
$25.74
-2.28%
HEALTHCARE · Cap: $13.67B
WST
West Pharmaceutical Services Inc
$411.30
-0.38%
HEALTHCARE · Cap: $28.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Baxter International Inc generates 242% more annual revenue ($11.61B vs $3.40B). WST leads profitability with a 18.8% profit margin vs -6.2%. WST appears more attractively valued with a PEG of 2.91. WST earns a higher WallStSmart Score of 62/100 (C+).
BAX
Hold50
out of 100
Grade: D+
WST
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+51.0%
Fair Value
$45.47
Current Price
$25.74
$19.73 discount
Margin of Safety
-38.9%
Fair Value
$177.25
Current Price
$411.30
$234.05 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 36.8% YoY
Earnings expanding 57.3% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 22 in profit
Conservative balance sheet, low leverage
Strong operational efficiency at 25.4%
Areas to Watch
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
ROE of -11.1% — below average capital efficiency
Trading at 9.7x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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, Return on Equity. Profitability is solid with margins at 18.8% and operating margin at 25.4%.
Bear Case : BAX
The primary concerns for BAX are Altman Z-Score, Debt/Equity, PEG Ratio.
Bear Case : WST
The primary concerns for WST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 46.4x leaves little room for execution misses.
Key Dynamics to Monitor
BAX profiles as a turnaround stock while WST is a mature play — different risk/reward profiles.
WST carries more volatility with a beta of 1.14 — expect wider price swings.
WST is growing revenue faster at 8.7% — sustainability is the question.
BAX generates stronger free cash flow (448M), providing more financial flexibility.
Bottom Line
WST scores higher overall (62/100 vs 50/100), backed by strong 18.8% margins. BAX offers better value entry with a 51.0% margin of safety. Both earn "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.
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.
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.
Compare with Other MEDICAL INSTRUMENTS & SUPPLIES Stocks
Want to dig deeper into these stocks?