Critical Survey: C.R. Bard (BCR) & Transenterix (TRXC)

C.R. Bard (NYSE: BCR) and Transenterix (NYSE:TRXC) are both medical equipment, supplies & distribution – nec companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Valuation & Earnings

This table compares C.R. Bard and Transenterix’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
C.R. Bard $3.71 billion 6.51 $531.40 million $7.59 43.73
Transenterix N/A N/A N/A ($0.47) -6.13

C.R. Bard has higher revenue and earnings than Transenterix. Transenterix is trading at a lower price-to-earnings ratio than C.R. Bard, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

C.R. Bard has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Transenterix has a beta of 2.14, indicating that its stock price is 114% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for C.R. Bard and Transenterix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
C.R. Bard 0 7 0 0 2.00
Transenterix 0 0 2 0 3.00

C.R. Bard currently has a consensus target price of $295.43, suggesting a potential downside of 10.99%. Transenterix has a consensus target price of $3.38, suggesting a potential upside of 17.19%. Given Transenterix’s stronger consensus rating and higher probable upside, analysts clearly believe Transenterix is more favorable than C.R. Bard.

Profitability

This table compares C.R. Bard and Transenterix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
C.R. Bard 14.75% 48.28% 16.23%
Transenterix -928.85% -49.16% -33.51%

Institutional & Insider Ownership

79.0% of C.R. Bard shares are held by institutional investors. 0.8% of C.R. Bard shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

C.R. Bard pays an annual dividend of $1.04 per share and has a dividend yield of 0.3%. Transenterix does not pay a dividend. C.R. Bard pays out 13.7% of its earnings in the form of a dividend. C.R. Bard has raised its dividend for 45 consecutive years.

Summary

C.R. Bard beats Transenterix on 9 of the 14 factors compared between the two stocks.

C.R. Bard Company Profile

C. R. Bard, Inc. (Bard) is engaged in designing, manufacturing, packaging, distribution and sale of medical, surgical, diagnostic and patient care devices. The Company operates through the manufacture and sale of medical devices segment. It sells a range of products to hospitals, individual healthcare professionals, extended care facilities and alternate site facilities on a global basis. Its vascular products cover a range of minimally invasive devices for the treatment of peripheral vascular disease and end-stage renal disease. Its urology products include basic urology drainage products, fecal and urinary continence products, urological specialty products and Targeted Temperature Management products. Its oncology products cover a range of devices used in the treatment and management of various cancers, and other diseases and disorders. Its surgical specialty products include implanted patches and fixation devices for hernia and soft tissue repairs.

Transenterix Company Profile

TransEnterix, Inc. is a medical device company. The Company is focused on the development and commercialization of ALF-X Surgical Robotic System (the ALF-X System), and SurgiBot System. The Company’s ALF-X System is a multi-port robotic surgery system, which allows multiple robotic arms to control instruments and a camera. The system features advanced technology to enable surgeons with haptic feedback and the ability to move the camera through eye movement. The system replicates laparoscopic motion and integrates three-dimensional high definition (3DHD) vision technology. The ALF-X System also offers responsible economics to hospitals by offering robotic technology with reusable instruments. The SurgiBot System is designed as a single-incision, patient-side robotic-assisted surgery system. The Company also develops and manufactures laparoscopic surgical instruments that are used in abdominal surgery, such as scissors, graspers, clip appliers, and suction and irrigation instruments.

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