Analyzing Motus GI (NASDAQ:MOTS) and West Pharmaceutical Services (NYSE:WST)

West Pharmaceutical Services (NYSE:WST) and Motus GI (NASDAQ:MOTS) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
West Pharmaceutical Services	18.25%	19.17%	14.38%
Motus GI	-3,239.75%	-1,731.08%	-115.99%

Analyst Ratings

This is a summary of recent ratings and target prices for West Pharmaceutical Services and Motus GI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Pharmaceutical Services	0	1	3	0	2.75
Motus GI	0	0	0	0	N/A

West Pharmaceutical Services currently has a consensus price target of $442.75, indicating a potential upside of 50.94%. Given West Pharmaceutical Services’ higher possible upside, analysts plainly believe West Pharmaceutical Services is more favorable than Motus GI.

Insider & Institutional Ownership

93.9% of West Pharmaceutical Services shares are owned by institutional investors. Comparatively, 20.1% of Motus GI shares are owned by institutional investors. 0.5% of West Pharmaceutical Services shares are owned by company insiders. Comparatively, 0.3% of Motus GI shares are owned 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.

Valuation and Earnings

This table compares West Pharmaceutical Services and Motus GI”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West Pharmaceutical Services	$2.88 billion	7.43	$593.40 million	$7.58	38.70
Motus GI	$319,000.00	0.45	-$12.87 million	($15.64)	0.00

West Pharmaceutical Services has higher revenue and earnings than Motus GI. Motus GI 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.

Volatility and Risk

West Pharmaceutical Services has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Motus GI has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.

Summary

West Pharmaceutical Services beats Motus GI on 12 of the 13 factors compared between the two stocks.

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.

About Motus GI

Motus GI Holdings, Inc. operates as a medical technology company in the United States. It develops Pure-Vu system, a medical device to facilitate the cleansing of a poorly prepared gastrointestinal tract during the colonoscopy and facilitates upper gastrointestinal endoscopy procedures. The company was formerly known as Eight-Ten Merger Corp. and changed its name to Motus GI Holdings, Inc. in November 2016. The company was founded in 2008 and is based in Fort Lauderdale, Florida.