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 $52.3B against $27.3B — 1.9× the size. West Pharmaceutical Services, Inc. trades at the lower P/E: 44.5× against 48.4×. West Pharmaceutical Services, Inc. has the higher net margin (18.8% vs 1.84%) and the lower return on invested capital (18.0% vs 20.1%). Across the 18 metrics below, Medline Inc. leads on 10 and West Pharmaceutical Services, Inc. on 8.

Valuation

Metric MDLN WST Medical Instruments & Supplies median
P/E 48.40 44.45 30.84
P/S 1.13 8.26 2.54
P/B 1.79 9.46 2.36
Price to free cash flow 18.30 62.43 23.46
EV/EBITDA 4.29 28.83 14.70
EV/Sales 1.42 8.19 2.78
Earnings yield 2.07% 2.25% 0.25%
Free cash flow yield 5.47% 1.60% 0.57%

Profitability

Metric MDLN WST Medical Instruments & Supplies median
Gross margin 44.88% 37.59% 53.46%
Operating margin 29.67% 22.97% 2.26%
Net margin 1.84% 18.81% 0.16%
Free cash flow margin 6.18% 13.35% 4.10%
Return on equity 3.18% 21.23% 0.00%
Return on assets 1.49% 15.65% 0.00%
Return on invested capital 20.06% 18.01% 0.13%

Growth

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

Health

Metric MDLN WST Medical Instruments & Supplies median
Debt to equity 0.65 0.07 0.10
Current ratio 4.04 2.82 2.42
Net debt to EBITDA 3.24 (0.78) 0.97

Dividend

Metric MDLN WST Medical Instruments & Supplies median
Dividend yield — 0.22% 1.03%
Payout ratio — 0.10 0.25

Size

Metric MDLN WST Medical Instruments & Supplies median
Market cap 52.26b 27.34b 1.64b

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