WallStSmart

Omega Healthcare Investors Inc (OHI)vsWest Pharmaceutical Services Inc (WST)

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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 Buy

67

out of 100

Grade: B-

Growth: 8.0Profit: 8.0Value: 7.3Quality: 7.0
Piotroski: 4/9Altman Z: 0.78

WST

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 8.0Value: 4.7Quality: 7.3
Piotroski: 5/9Altman Z: 4.91
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OHIUndervalued (+46.0%)

Margin of Safety

+46.0%

Fair Value

$86.58

Current Price

$44.73

$41.85 discount

UndervaluedFair: $86.58Overvalued
WSTSignificantly Overvalued (-256.8%)

Margin of Safety

-256.8%

Fair Value

$68.99

Current Price

$245.27

$176.28 premium

UndervaluedFair: $68.99Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OHI4 strengths · Avg: 9.0/10
Profit MarginProfitability
49.6%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
63.2%10/10

Strong operational efficiency at 63.2%

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
34.6%8/10

Earnings expanding 34.6% YoY

WST2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
4.9110/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

Areas to Watch

OHI3 concerns · Avg: 2.0/10
PEG RatioValuation
11.992/10

Expensive relative to growth rate

Free Cash FlowQuality
$-486.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.782/10

Distress zone — elevated risk

WST3 concerns · Avg: 3.3/10
P/E RatioValuation
36.1x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
2.1%4/10

2.1% earnings growth

PEG RatioValuation
2.892/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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.

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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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