HomeMost PopularInvestingWhich Is A Better Pick – Corning Stock Or West Pharmaceutical Services?

Which Is A Better Pick – Corning Stock Or West Pharmaceutical Services?

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In the world of finance, Corning stock (NYSE: GLW) and West Pharmaceutical Services stock (NYSE: WST) are often pitted against each other. While belonging to different sectors, they have a similar market capitalization of around $30 billion. In this article, we analyze these two companies and determine which one is the better pick for investors.

1. Revenue Growth Comparison

When it comes to revenue growth, West Pharmaceutical Services has outperformed Corning. Over the last few years, Corning’s sales grew at an average annual rate of 7.9%, reaching $14.2 billion in 2022. In comparison, West Pharmaceutical Services saw its sales grow at an average annual rate of 16.8%, reaching $2.9 billion in 2022. Corning’s revenue growth has been driven by increased demand for gasoline particulate filters and its 5G coverage expansion. On the other hand, West Pharmaceutical Services has experienced solid demand for its proprietary products, especially those related to the Covid-19 vaccine and treatments.

2. Profitability Comparison

When it comes to profitability, West Pharmaceutical Services takes the lead. Its operating margin has risen from 16.1% to 25.4% over the past few years, whereas Corning’s operating margin has declined from 15.6% to 14.7%. Additionally, WST has a better financial position, with lower debt and higher cash reserves compared to Corning.

3. Valuation Comparison

In terms of valuation, Corning seems to have the edge. Currently, Corning stock is trading at a price-to-sales ratio of 2.0x, lower than its five-year average of 2.4x. In contrast, West Pharmaceutical Services stock is trading at a price-to-sales ratio of 10.2x, higher than its five-year average of 8.9x. This indicates that Corning may be undervalued compared to West Pharmaceutical Services.

In conclusion, while West Pharmaceutical Services has shown stronger revenue growth and profitability, Corning may be the better choice for investors based on its current valuation. However, it is crucial to consider other factors and conduct thorough research before making any investment decisions.

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