Align Technology, Inc. (ALGN) vs West Pharmaceutical Services, Inc. (WST)

Align Technology, Inc. and West Pharmaceutical Services, Inc. are both Medical Instruments & Supplies companies. West Pharmaceutical Services, Inc. is the larger, with a market value of $27.3B against $11.3B — 2.4× the size. Align Technology, Inc. trades at the lower P/E: 23.1× against 43.8×. West Pharmaceutical Services, Inc. grew revenue faster over the last twelve months: 12.6% against 4.42%. West Pharmaceutical Services, Inc. has the higher net margin (18.8% vs 11.8%) and the higher return on invested capital (18.0% vs 12.3%). Across the 22 metrics below, Align Technology, Inc. leads on 13 and West Pharmaceutical Services, Inc. on 9.

Valuation

Metric ALGN WST Medical Instruments & Supplies median
P/E 23.08 43.81 30.28
P/S 2.71 8.14 2.49
P/B 2.66 9.32 2.34
Price to free cash flow 16.84 61.53 23.49
EV/EBITDA 12.64 28.41 14.87
EV/Sales 2.44 8.07 2.75
Earnings yield 4.33% 2.28% 0.00%
Free cash flow yield 5.94% 1.63% 0.59%

Profitability

Metric ALGN WST Medical Instruments & Supplies median
Gross margin 69.14% 37.59% 53.60%
Operating margin 14.92% 22.97% 1.97%
Net margin 11.83% 18.81% 0.00%
Free cash flow margin 18.03% 13.35% 2.36%
Return on equity 0.00% 21.23% 0.00%
Return on assets 7.71% 15.65% 0.00%
Return on invested capital 12.27% 18.01% 0.13%

Growth

Metric ALGN WST Medical Instruments & Supplies median
Revenue growth (TTM) 4.42% 12.55% 8.97%
EPS growth (last fiscal year) 0.53% 1.49% 6.51%
Revenue growth, 5-year CAGR 10.30% 7.44% 8.85%
Net income growth, 5-year CAGR (25.40%) 7.36% 0.00%

Health

Metric ALGN WST Medical Instruments & Supplies median
Debt to equity 0.00 0.07 0.10
Current ratio 1.42 2.82 2.47
Net debt to EBITDA (1.40) (0.78) 0.97

Dividend

Metric ALGN WST Medical Instruments & Supplies median
Dividend yield — 0.22% 1.02%
Payout ratio — 0.10 0.27

Size

Metric ALGN WST Medical Instruments & Supplies median
Market cap 11.32b 27.34b 1.71b

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