Home > Comparison > Healthcare > ISRG vs WST
The strategic rivalry between Intuitive Surgical, Inc. and West Pharmaceutical Services, Inc. shapes the evolution of the healthcare instruments and supplies sector. Intuitive Surgical operates as a capital-intensive innovator in minimally invasive surgical systems. In contrast, West Pharmaceutical Services excels as a specialized provider of drug containment and delivery solutions. This analysis will assess which company’s approach offers a superior risk-adjusted return for a diversified portfolio navigating healthcare’s complex dynamics.
Table of contents
Companies Overview
Intuitive Surgical and West Pharmaceutical Services stand as pivotal players in the medical instruments sector.
Intuitive Surgical, Inc.: Pioneer in Minimally Invasive Surgery
Intuitive Surgical dominates the minimally invasive surgical systems market. It generates revenue primarily through sales and service of the da Vinci Surgical System and the Ion endoluminal system. Its 2026 strategy centers on expanding its surgical platform and integrating digital capabilities to enhance hospital efficiency and outcomes.
West Pharmaceutical Services, Inc.: Specialist in Drug Containment Solutions
West Pharmaceutical excels in containment and delivery systems for injectable drugs and healthcare products globally. Its revenue derives from proprietary product sales like stoppers, seals, and self-injection devices, plus contract manufacturing. The company’s 2026 focus emphasizes innovation in drug delivery technologies and expanding its global manufacturing footprint.
Strategic Collision: Similarities & Divergences
Both companies operate in healthcare but diverge in approach: Intuitive Surgical emphasizes advanced robotic systems while West prioritizes drug packaging and delivery innovation. They compete indirectly, with Intuitive enhancing surgical outcomes and West ensuring drug safety and administration. Their investment profiles contrast sharply—Intuitive is growth-oriented and tech-driven; West is steady, innovation-focused, and manufacturing-centric.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Intuitive Surgical, Inc. (ISRG) | West Pharmaceutical Services, Inc. (WST) |
|---|---|---|
| Revenue | 10.1B | 3.07B |
| Cost of Revenue | 3.42B | 1.97B |
| Operating Expenses | 3.70B | 468M |
| Gross Profit | 6.64B | 1.10B |
| EBITDA | 3.62B | 585M |
| EBIT | 2.95B | 0 |
| Interest Expense | 0 | 17M |
| Net Income | 2.86B | 494M |
| EPS | 8.00 | 6.83 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company operates with superior efficiency and profitability in the competitive medical technology sector.
Intuitive Surgical, Inc. Analysis
Intuitive Surgical’s revenue surged from 5.7B in 2021 to 10.1B in 2025, reflecting robust growth. Net income soared 68% over five years, reaching 2.86B in 2025. The gross margin remains strong at 66%, with a healthy net margin near 28%. Operating leverage improves, as EBITDA and EBIT margins expanded alongside revenue growth, signaling excellent cost control and momentum.
West Pharmaceutical Services, Inc. Analysis
West Pharmaceutical showed modest revenue growth from 2.83B in 2021 to 3.07B in 2025. However, net income declined 25% over the period, falling to 494M in 2025. Gross margin is lower at 36%, and EBIT margin dropped to zero due to rising operating expenses. Recent margin contraction and a negative net margin trend highlight weakening profitability and operational challenges.
Margin Strength vs. Growth Trajectory
Intuitive Surgical outperforms West Pharmaceutical with superior revenue growth and higher, expanding margins. Its 28% net margin dwarfs West’s 16%, while consistent earnings growth underscores efficient capital allocation. West’s stagnant top line and declining net income indicate operational strain. For investors, Intuitive Surgical offers a stronger growth and profitability profile, aligning with market leaders in the sector.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Intuitive Surgical, Inc. (ISRG) | West Pharmaceutical Services, Inc. (WST) |
|---|---|---|
| ROE | 16.0% | 18.4% |
| ROIC | 13.7% | 15.7% |
| P/E | 70.8 | 40.3 |
| P/B | 11.3 | 0 (not reported) |
| Current Ratio | 4.87 | 0 (not reported) |
| Quick Ratio | 3.96 | 0 (not reported) |
| D/E (Debt-to-Equity) | 1.7% | 0 (not reported) |
| Debt-to-Assets | 1.5% | 0 (not reported) |
| Interest Coverage | 0 | -34.4 |
| Asset Turnover | 0.49 | 0 (not reported) |
| Fixed Asset Turnover | 1.88 | 0 (not reported) |
| Payout Ratio | 0% | 12.4% |
| Dividend Yield | 0% | 0.31% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios serve as a company’s DNA, exposing hidden risks and highlighting operational strength for investors.
Intuitive Surgical, Inc.
Intuitive Surgical posts a strong 16.0% ROE and a robust 28.4% net margin, signaling solid profitability. However, its valuation appears stretched with a P/E of 70.8 and a high P/B of 11.3. The firm does not pay dividends, instead reinvesting heavily in R&D, dedicating 13% of revenue to innovation.
West Pharmaceutical Services, Inc.
West Pharma shows a favorable 16.1% net margin but disappoints with zero reported ROE and ROIC, raising concerns about efficiency metrics. Its P/E of 40.3 is lower than Intuitive Surgical but still elevated. The company offers a modest 0.31% dividend yield, providing some shareholder return amid mixed profitability signals.
Premium Valuation vs. Operational Safety
Intuitive Surgical delivers better profitability and reinvestment discipline but trades at a premium valuation, increasing risk. West Pharmaceutical’s lower valuation and dividend yield contrast with weaker efficiency metrics. Investors seeking growth may prefer Intuitive, while conservative profiles might lean toward West’s income aspect despite operational headwinds.
Which one offers the Superior Shareholder Reward?
Intuitive Surgical (ISRG) pays no dividends but reinvests heavily in R&D, fueling robust free cash flow growth (7F FCF/share in 2025) and maintaining a pristine balance sheet (debt/assets ~1.5%). West Pharmaceutical (WST) offers modest dividends (0.31% yield) with a stable payout ratio (~12%) and steady buybacks underpinning returns. I see ISRG’s zero payout as a strategic choice to maximize innovation and long-term value, supported by a strong FCF margin and nearly net cash position. WST balances income and buybacks, but its lower margin and higher leverage pose risks. For 2026, I favor ISRG’s capital allocation discipline and growth potential as the superior total return opportunity.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Intuitive Surgical, Inc. and West Pharmaceutical Services, Inc.:
Intuitive Surgical demonstrates a balanced financial profile with strong ROE (4) and ROA (5) scores and healthy debt management (4). West Pharmaceutical lags with very unfavorable scores in profitability and leverage, relying on a moderate DCF score (3). Intuitive’s strength lies in operational efficiency, while West shows vulnerability across key metrics.
Bankruptcy Risk: Solvency Showdown
Intuitive Surgical’s Altman Z-Score of 41 far outpaces West Pharmaceutical’s 13, signaling a much safer long-term solvency position in this cycle:
Financial Health: Quality of Operations
Intuitive Surgical’s Piotroski F-Score of 7 indicates strong financial health, surpassing West’s average score of 6, which raises modest red flags in internal financial metrics:
How are the two companies positioned?
This section dissects the operational DNA of ISRG and WST by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats and identify which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Intuitive Surgical, Inc. and West Pharmaceutical Services, Inc. diversify their income streams and reveals each company’s primary sector bets:
Intuitive Surgical anchors its revenue in Instruments and Accessories at $6B, with Systems ($2.5B) and Services ($1.6B) supporting a balanced but Instruments-heavy mix. West Pharmaceutical relies predominantly on Proprietary Products at $2.3B, with Contract Manufactured Products at $559M as a smaller contributor. Intuitive’s diverse streams reduce concentration risk, while West’s reliance on proprietary offerings signals strong ecosystem lock-in but higher dependency on a single segment.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Intuitive Surgical, Inc. (ISRG) and West Pharmaceutical Services, Inc. (WST):
ISRG Strengths
- High net margin at 28.38%
- Strong ROE at 16.02%
- Favorable ROIC at 13.71%
- Very low debt-to-assets at 1.47%
- Robust quick ratio of 3.96
- Diversified revenue from Instruments, Services, and Systems
WST Strengths
- Positive net margin of 16.06%
- Favorable debt-to-equity and debt-to-assets ratios
- Solid proprietary products segment at $2.33B
- Global presence including US and multiple European countries
- Favorable price-to-book ratio
ISRG Weaknesses
- High P/E ratio at 70.78 indicating expensive valuation
- Unfavorable current ratio at 4.87 possibly indicating excess liquidity
- Asset turnover at 0.49 is low, suggesting less efficient asset use
- No dividend yield
- WACC higher than ROIC at 11.44%, a capital cost concern
WST Weaknesses
- Zero ROE and ROIC, reflecting weak profitability
- Unavailable WACC data hinders cost of capital assessment
- Unfavorable current and quick ratios signal liquidity risk
- Negative interest coverage ratio
- Zero asset turnover and fixed asset turnover ratios
- Low dividend yield despite positive net margin
Both companies exhibit strengths in profitability and financial stability, but ISRG shows a higher valuation and stronger operational efficiency. WST struggles with profitability metrics and liquidity ratios, highlighting areas for strategic improvement.
The Moat Duel: Analyzing Competitive Defensibility
A strong structural moat is the only reliable shield protecting long-term profits from relentless competition erosion:
Intuitive Surgical, Inc. (ISRG): Innovation-Driven Network Effects
I see ISRG’s moat rooted in network effects and intangible assets, reflected in stable high ROIC above WACC. Its expanding surgical and diagnostic platforms deepen defensibility in 2026.
West Pharmaceutical Services, Inc. (WST): Specialized Cost Advantage
WST’s moat relies on specialized manufacturing and proprietary drug containment systems, contrasting ISRG’s tech moat. However, declining ROIC signals weakening economic profits, though new contract manufacturing may offer growth.
Innovation Dominance vs. Manufacturing Specialization
ISRG holds a wider, deeper moat with growing ROIC and strong margin expansion. WST’s declining profitability and shrinking returns leave it less equipped to defend market share long-term.
Which stock offers better returns?
The stock prices of Intuitive Surgical, Inc. and West Pharmaceutical Services, Inc. have shown contrasting dynamics over the past year, with significant shifts in momentum and trading activity shaping their trajectories.
Trend Comparison
Intuitive Surgical, Inc. recorded a 23.29% price increase over the past year, indicating a bullish trend with decelerating momentum. The stock peaked at 595.55 and bottomed at 366.34. Recent months show a -15.28% pullback.
West Pharmaceutical Services, Inc. fell 36.41% in price over the same period, confirming a bearish trend with deceleration. The stock ranged from 201.9 to 395.71. Recent declines continued at -9.65%, showing persistent weakness.
Intuitive Surgical outperformed West Pharmaceutical Services by delivering a positive return versus a steep decline, marking it as the stronger market performer in the last 12 months.
Target Prices
Analysts show a positive outlook for both Intuitive Surgical, Inc. and West Pharmaceutical Services, Inc.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Intuitive Surgical, Inc. | 550 | 750 | 641.25 |
| West Pharmaceutical Services, Inc. | 265 | 340 | 304.43 |
The consensus target prices exceed current stock prices, indicating expected growth potential. Intuitive Surgical’s target consensus is about 32% above its $485 price, while West Pharmaceutical’s target suggests a 21% upside from $250.
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How do institutions grade them?
Intuitive Surgical, Inc. Grades
The following table summarizes recent grades from recognized institutional analysts for Intuitive Surgical, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Freedom Capital Markets | Buy | Buy | 2026-01-27 |
| Barclays | Maintain | Overweight | 2026-01-26 |
| Citigroup | Maintain | Neutral | 2026-01-23 |
| Bernstein | Maintain | Outperform | 2026-01-23 |
| Piper Sandler | Maintain | Overweight | 2026-01-23 |
| Evercore ISI Group | Maintain | In Line | 2026-01-23 |
| BTIG | Maintain | Buy | 2026-01-23 |
| Bernstein | Maintain | Outperform | 2026-01-09 |
| Barclays | Maintain | Overweight | 2026-01-07 |
| BTIG | Maintain | Buy | 2026-01-07 |
West Pharmaceutical Services, Inc. Grades
The following table presents recent institutional grades for West Pharmaceutical Services, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Equal Weight | 2026-02-13 |
| Evercore ISI Group | Maintain | Outperform | 2026-02-03 |
| Barclays | Maintain | Equal Weight | 2025-10-27 |
| Keybanc | Maintain | Overweight | 2025-10-24 |
| UBS | Maintain | Buy | 2025-10-24 |
| Evercore ISI Group | Maintain | Outperform | 2025-10-23 |
| Barclays | Maintain | Equal Weight | 2025-10-02 |
| Barclays | Maintain | Equal Weight | 2025-07-25 |
| UBS | Maintain | Buy | 2025-07-25 |
| Evercore ISI Group | Maintain | Outperform | 2025-07-25 |
Which company has the best grades?
Intuitive Surgical holds generally stronger grades, including multiple Buy and Outperform ratings from top-tier firms. West Pharmaceutical’s grades cluster around Equal Weight and Outperform, with fewer Buy ratings. This suggests stronger institutional conviction in Intuitive Surgical, possibly influencing investor confidence and stock demand.
Risks specific to each company
In the 2026 market environment, these categories highlight the critical pressure points and systemic threats confronting both firms:
1. Market & Competition
Intuitive Surgical, Inc.
- Faces intense competition in surgical robotics with rapid innovation cycles. High market cap supports R&D leadership.
West Pharmaceutical Services, Inc.
- Operates in a niche injectable drug delivery market with steady demand but limited growth opportunities.
2. Capital Structure & Debt
Intuitive Surgical, Inc.
- Very low debt (D/E 0.02) and strong interest coverage reduce financial risk significantly.
West Pharmaceutical Services, Inc.
- No debt reported, but weak interest coverage signals potential liquidity concerns.
3. Stock Volatility
Intuitive Surgical, Inc.
- Beta of 1.66 indicates higher volatility than the market, implying greater price swings.
West Pharmaceutical Services, Inc.
- Beta of 1.19 suggests moderate volatility, closer to market average.
4. Regulatory & Legal
Intuitive Surgical, Inc.
- Subject to stringent FDA approvals and evolving medical device regulations globally.
West Pharmaceutical Services, Inc.
- Faces complex regulations on pharmaceutical packaging and drug delivery systems, with potential compliance costs.
5. Supply Chain & Operations
Intuitive Surgical, Inc.
- Relies on specialized component suppliers; disruptions could delay product rollout.
West Pharmaceutical Services, Inc.
- Diverse manufacturing footprint mitigates some risks but complexity raises operational costs.
6. ESG & Climate Transition
Intuitive Surgical, Inc.
- Increasing pressure to reduce carbon footprint in manufacturing and product lifecycle.
West Pharmaceutical Services, Inc.
- Must enhance sustainability in plastics and polymer use amid rising regulatory scrutiny.
7. Geopolitical Exposure
Intuitive Surgical, Inc.
- Global sales expose it to trade tensions and currency fluctuations, especially in emerging markets.
West Pharmaceutical Services, Inc.
- Broad international presence with exposure to political instability in key pharmaceutical markets.
Which company shows a better risk-adjusted profile?
Intuitive Surgical’s low leverage, strong liquidity, and robust Altman Z-Score (40.97) underscore a safer financial foundation. West Pharmaceutical’s weak profitability metrics, unfavorable leverage scores, and operational uncertainties raise red flags. The highest risk for Intuitive lies in market competition and volatility. West’s most impactful risk is its fragile capital structure and operational inefficiencies. Overall, Intuitive Surgical presents a superior risk-adjusted profile, justified by its strong balance sheet and financial scores despite higher stock volatility.
Final Verdict: Which stock to choose?
Intuitive Surgical’s superpower lies in its robust economic moat, driven by a growing ROIC well above its cost of capital. This cash-generative model fuels innovation and efficiency. However, its lofty valuation and stretched current ratio warrant caution. It suits investors targeting aggressive growth with a tolerance for premium pricing.
West Pharmaceutical boasts a strategic moat grounded in recurring revenue and niche specialization. It offers a safer profile compared to Intuitive, with more stable cash flow dynamics. Yet, its declining ROIC trend and weaker income growth signal risk. It fits portfolios aiming for growth at a reasonable price, favoring stability over rapid expansion.
If you prioritize dynamic growth backed by a proven value creator, Intuitive Surgical outshines with its sustainable competitive advantage. However, if you seek a steadier, defensive position with recurring revenue, West Pharmaceutical offers better stability despite its recent headwinds. Each presents distinct risk-reward profiles aligned with different investor avatars.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Intuitive Surgical, Inc. and West Pharmaceutical Services, Inc. to enhance your investment decisions:
