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 $48.1B against $27.0B — 1.8× 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 — 48.66 33.75
P/S 1.04 8.15 2.52
P/B 1.62 9.07 2.48
Price to free cash flow 13.38 62.60 25.19
EV/EBITDA 4.05 31.19 14.62
EV/Sales 1.37 8.08 2.88
Earnings yield — 2.06% (2.67%)
Free cash flow yield 7.48% 1.60% 0.09%

Profitability

Metric MDLN WST Medical Instruments & Supplies median
Gross margin 46.27% 36.79% 54.29%
Operating margin 31.12% 20.45% 1.07%
Net margin 2.37% 16.98% (1.61%)
Free cash flow margin 7.75% 13.13% 1.08%
Return on equity 0.00% 19.09% (1.32%)
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% 8.85%
EPS growth (last fiscal year) — 1.49% 8.65%
Revenue growth, 5-year CAGR — 7.44% 9.17%
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 0.10
Current ratio 4.33 2.82 2.48
Net debt to EBITDA 3.24 (0.78) 0.89

Dividend

Metric MDLN WST Medical Instruments & Supplies median
Dividend yield — 0.23% 1.11%
Payout ratio — 0.11 0.27

Size

Metric MDLN WST Medical Instruments & Supplies median
Market cap 48.08b 26.96b 619.84m

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