Medline Inc. (MDLN) vs West Pharmaceutical Services, Inc. (WST)

Medline Inc. and West Pharmaceutical Services, Inc. are both Medical Instruments & Supplies companies. Medline Inc. is the larger, with a market value of $45.5B against $26.3B — 1.7× the size. West Pharmaceutical Services, Inc. has the higher net margin (17.0% vs 2.37%) and the lower return on invested capital (15.4% vs 19.9%). Across the 16 metrics below, Medline Inc. leads on 10 and West Pharmaceutical Services, Inc. on 6.

Valuation

Metric MDLN WST Medical Instruments & Supplies median
P/E — 47.07 34.17
P/S 1.00 7.88 2.83
P/B 1.56 8.77 2.82
Price to free cash flow 12.91 60.56 25.69
EV/EBITDA 3.95 30.16 16.08
EV/Sales 1.33 7.81 3.06
Earnings yield — 2.12% (1.84%)
Free cash flow yield 7.75% 1.65% 0.17%

Profitability

Metric MDLN WST Medical Instruments & Supplies median
Gross margin 46.27% 36.79% 54.62%
Operating margin 31.12% 20.45% 1.64%
Net margin 2.37% 16.98% 0.00%
Free cash flow margin 7.75% 13.13% 1.61%
Return on equity 0.00% 19.09% 0.00%
Return on assets 3.58% 14.07% 0.00%
Return on invested capital 19.94% 15.42% 0.00%

Growth

Metric MDLN WST Medical Instruments & Supplies median
Revenue growth (TTM) — 12.38% 9.20%
EPS growth (last fiscal year) — 1.49% —
Revenue growth, 5-year CAGR — 7.44% 9.48%
Net income growth, 5-year CAGR — 7.36% 0.00%

Health

Metric MDLN WST Medical Instruments & Supplies median
Debt to equity 0.66 0.07 0.08
Current ratio 4.33 2.82 2.49
Net debt to EBITDA 3.24 (0.78) 0.83

Dividend

Metric MDLN WST Medical Instruments & Supplies median
Dividend yield — 0.14% 0.99%
Payout ratio — 0.11 0.00

Size

Metric MDLN WST Medical Instruments & Supplies median
Market cap 45.52b 26.29b 938.39m

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