Head-To-Head Analysis: Lifevantage (NASDAQ:LFVN) vs. West Pharmaceutical Services (NYSE:WST)

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

Valuation & Earnings

This table compares West Pharmaceutical Services and Lifevantage”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	$2.89 billion	7.08	$492.70 million	$6.75	42.19
Lifevantage	$228.53 million	0.45	$9.81 million	$0.74	11.01

West Pharmaceutical Services has higher revenue and earnings than Lifevantage. Lifevantage 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.

Analyst Recommendations

This is a summary of current ratings for West Pharmaceutical Services and Lifevantage, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Pharmaceutical Services	0	4	9	2	2.87
Lifevantage	0	1	2	0	2.67

West Pharmaceutical Services currently has a consensus target price of $349.20, suggesting a potential upside of 22.61%. Lifevantage has a consensus target price of $30.50, suggesting a potential upside of 274.23%. Given Lifevantage’s higher probable upside, analysts clearly believe Lifevantage is more favorable than West Pharmaceutical Services.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
West Pharmaceutical Services	16.29%	18.16%	13.45%
Lifevantage	4.29%	33.75%	15.26%

Institutional & Insider Ownership

93.9% of West Pharmaceutical Services shares are held by institutional investors. Comparatively, 35.3% of Lifevantage shares are held by institutional investors. 0.5% of West Pharmaceutical Services shares are held by company insiders. Comparatively, 22.0% of Lifevantage shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

West Pharmaceutical Services pays an annual dividend of $0.84 per share and has a dividend yield of 0.3%. Lifevantage pays an annual dividend of $0.18 per share and has a dividend yield of 2.2%. West Pharmaceutical Services pays out 12.4% of its earnings in the form of a dividend. Lifevantage pays out 24.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lifevantage has raised its dividend for 3 consecutive years. Lifevantage is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

West Pharmaceutical Services has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Lifevantage has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Summary

West Pharmaceutical Services beats Lifevantage on 12 of the 18 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 Lifevantage

LifeVantage Corporation engages in the identification, research, development, formulation, and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, skin and hair care, bath and body, and targeted relief products. It offers Protandim, a dietary supplement; LifeVantage Omega+, a dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and vitamin D3; LifeVantage ProBio, a dietary supplement to support gut health; PhysIQ, a weight management system; LifeVantage IC Bright, a supplement to support eye and brain health, reduce eye fatigue and strain, supports cognitive functions, and support normal sleep patterns; Petandim for Dogs, a supplement to combat oxidative stress in dogs; and Axio, a nootropic energy drink mix. The company also provides anti-aging skin care products, including liquid collagen, facial cleansers, perfecting lotions, eye serums, anti-aging creams, hand creams, beauty serum, as well as hair care products, such as invigorating shampoos, nourishing conditioners, and scalp serums under the LifeVantage TrueScience brand name. In addition, it offers bath and body, and targeted relief products, such as body lotion, body wash, body butter, deodorant, soothing balm, and body rub under the TrueScience brand name. It sells its products through its website and network of independent distributors in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore, and the Philippines. The company was founded in 2003 and is headquartered in Lehi, Utah.