Dynatronics (NASDAQ:DYNT) and West Pharmaceutical Services (NYSE:WST) Critical Review

Dynatronics (NASDAQ:DYNT) and West Pharmaceutical Services (NYSE:WST) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Risk and Volatility

Dynatronics has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, West Pharmaceutical Services has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Profitability

This table compares Dynatronics and West Pharmaceutical Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynatronics	-8.88%	-41.41%	-10.12%
West Pharmaceutical Services	17.37%	18.41%	13.74%

Institutional & Insider Ownership

4.2% of Dynatronics shares are held by institutional investors. Comparatively, 93.9% of West Pharmaceutical Services shares are held by institutional investors. 8.0% of Dynatronics shares are held by company insiders. Comparatively, 0.5% of West Pharmaceutical Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Dynatronics and West Pharmaceutical Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatronics	0	0	0	0	0.00
West Pharmaceutical Services	0	1	4	0	2.80

West Pharmaceutical Services has a consensus target price of $437.75, indicating a potential upside of 31.59%. Given West Pharmaceutical Services’ stronger consensus rating and higher probable upside, analysts clearly believe West Pharmaceutical Services is more favorable than Dynatronics.

Earnings and Valuation

This table compares Dynatronics and West Pharmaceutical Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynatronics	$33.60 million	0.03	-$2.70 million	($0.96)	-0.13
West Pharmaceutical Services	$2.88 billion	8.38	$593.40 million	$6.74	49.36

West Pharmaceutical Services has higher revenue and earnings than Dynatronics. Dynatronics is trading at a lower price-to-earnings ratio than West Pharmaceutical Services, indicating that it is currently the more affordable of the two stocks.

Summary

West Pharmaceutical Services beats Dynatronics on 13 of the 14 factors compared between the two stocks.

About Dynatronics

Dynatronics Corporation, a medical device company, designs, manufactures, and sells physical therapy, rehabilitation, orthopedics, pain management, and athletic training products in the United States. The company offers orthopedic soft bracing products include cervical collars, shoulder immobilizers, arm slings, wrist and elbow supports, abdominal and lumbosacral supports, maternity supports, knee immobilizers and supports, ankle walkers and supports, plantar fasciitis splints, and cold therapy products. It also offers physical therapy and rehabilitation products, which include therapeutic modality devices comprising electrotherapy, ultrasound, phototherapy, traction, hot and cold therapy, and electrodes; and power and manually operated treatment tables, mat platforms, work tables, parallel bars, training stairs, weight racks, and other related equipment. In addition, the company manufactures and distributes clinical supplies, including exercise bands and tubing, lotions and gels, orthopedic bracings, paper products, and other related supplies. It markets its products under the Dynatron, Dynatron Solaris, Dynaheat, BodyIce, Powermatic, Bird & Cronin, Physician's Choice, Hausmann, PROTEAM, and Mammoth brands. The company sells its products to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, hospitals, and retail distributors and equipment manufacturers. It also exports its products in Asia, Latin America, and the Middle East. Dynatronics Corporation was founded in 1979 and is headquartered in Eagan, Minnesota.

About West Pharmaceutical Services

West Pharmaceutical Services, Inc. designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers stoppers and seals for injectable packaging systems; syringe and cartridge components, including custom solutions for the needs of injectable drug applications, as well as administration systems that enhance the safe delivery of drugs through advanced reconstitution, mixing, and transfer technologies; and films, coatings, washing, and vision inspection and sterilization processes and services to enhance the quality of packaging components. This segment also provides drug containment solutions, including Crystal Zenith, a cyclic olefin polymer in the form of vials, syringes, and cartridges; and self-injection devices; and a range of integrated solutions, including analytical lab services, pre-approval primary packaging support and engineering development, regulatory expertise, and after-sales technical support. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. The company serves pharmaceutical, diagnostic, and medical device companies. It sells and distributes its products through its sales force and distribution network, contract sales agents, and regional distributors. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Exton, Pennsylvania.