Omega Healthcare Investors Inc (OHI)vsWest Pharmaceutical Services Inc (WST)
OHI
Omega Healthcare Investors Inc
$44.73
-0.25%
REAL ESTATE · Cap: $13.61B
WST
West Pharmaceutical Services Inc
$245.27
+1.60%
HEALTHCARE · Cap: $17.68B
Smart Verdict
WallStSmart Research — data-driven comparison
West Pharmaceutical Services Inc generates 158% more annual revenue ($3.07B vs $1.19B). OHI leads profitability with a 49.6% profit margin vs 16.1%. WST appears more attractively valued with a PEG of 2.89. OHI earns a higher WallStSmart Score of 67/100 (B-).
OHI
Strong Buy67
out of 100
Grade: B-
WST
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+46.0%
Fair Value
$86.58
Current Price
$44.73
$41.85 discount
Margin of Safety
-256.8%
Fair Value
$68.99
Current Price
$245.27
$176.28 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 63.2%
Reasonable price relative to book value
Earnings expanding 34.6% YoY
Safe zone — low bankruptcy risk
Strong operational efficiency at 21.6%
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Premium valuation, high expectations priced in
2.1% earnings growth
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : OHI
The strongest argument for OHI centers on Profit Margin, Operating Margin, Price/Book. Profitability is solid with margins at 49.6% and operating margin at 63.2%. Revenue growth of 14.3% demonstrates continued momentum.
Bull Case : WST
The strongest argument for WST centers on Altman Z-Score, Operating Margin. Profitability is solid with margins at 16.1% and operating margin at 21.6%.
Bear Case : OHI
The primary concerns for OHI are PEG Ratio, Free Cash Flow, Altman Z-Score.
Bear Case : WST
The primary concerns for WST are P/E Ratio, EPS Growth, PEG Ratio.
Key Dynamics to Monitor
WST carries more volatility with a beta of 1.18 — expect wider price swings.
OHI is growing revenue faster at 14.3% — sustainability is the question.
WST generates stronger free cash flow (175M), providing more financial flexibility.
Monitor REIT - HEALTHCARE FACILITIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
OHI scores higher overall (67/100 vs 55/100), backed by strong 49.6% margins and 14.3% revenue growth. 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.
Omega Healthcare Investors Inc
REAL ESTATE · REIT - HEALTHCARE FACILITIES · USA
Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily skilled nursing and assisted living facilities.
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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