Head to Head Comparison: Becton Dickinson (BDX) vs. Its Rivals

Becton Dickinson (NYSE: BDX) is one of 104 public companies in the “Surgical & medical instruments” industry, but how does it contrast to its competitors? We will compare Becton Dickinson to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, earnings, profitability and analyst recommendations.

Insider and Institutional Ownership

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83.5% of Becton Dickinson shares are held by institutional investors. Comparatively, 47.1% of shares of all “Surgical & medical instruments” companies are held by institutional investors. 1.0% of Becton Dickinson shares are held by company insiders. Comparatively, 15.7% of shares of all “Surgical & medical instruments” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Becton Dickinson has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Becton Dickinson’s competitors have a beta of 0.80, suggesting that their average stock price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Becton Dickinson and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Becton Dickinson 0 4 10 1 2.80
Becton Dickinson Competitors 495 1890 3757 118 2.56

Becton Dickinson currently has a consensus price target of $240.00, indicating a potential upside of 3.06%. As a group, “Surgical & medical instruments” companies have a potential upside of 13.97%. Given Becton Dickinson’s competitors higher possible upside, analysts plainly believe Becton Dickinson has less favorable growth aspects than its competitors.

Profitability

This table compares Becton Dickinson and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Becton Dickinson 2.71% 16.19% 5.74%
Becton Dickinson Competitors -62.26% -47.35% -18.28%

Dividends

Becton Dickinson pays an annual dividend of $3.00 per share and has a dividend yield of 1.3%. Becton Dickinson pays out 31.6% of its earnings in the form of a dividend. As a group, “Surgical & medical instruments” companies pay a dividend yield of 1.2% and pay out 32.7% of their earnings in the form of a dividend. Becton Dickinson has increased its dividend for 46 consecutive years. Becton Dickinson is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Becton Dickinson and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Becton Dickinson $12.09 billion $1.10 billion 24.57
Becton Dickinson Competitors $1.54 billion $111.80 million -144.82

Becton Dickinson has higher revenue and earnings than its competitors. Becton Dickinson is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Becton Dickinson beats its competitors on 13 of the 15 factors compared.

About Becton Dickinson

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products worldwide. It operates in two segments, BD Medical and BD Life Sciences. The BD Medical segment offers syringes, pen needles, and other products for diabetes; needles, syringes, and intravenous catheters for medication delivery; prefilled IV flush syringes; regional anesthesia needles and trays; sharps disposal containers; closed-system transfer devices; skin antiseptic products; surgical and laparoscopic instrumentations; intravenous medication safety and infusion therapy delivery, and automated medication dispensing and supply management systems; medication inventory optimization and tracking systems; and prefillable drug delivery systems. The BD Life Sciences segment provides integrated systems for specimen collection; safety-engineered blood collection, automated blood culturing and tuberculosis culturing, and microorganism identification and drug susceptibility systems; molecular testing systems for infectious diseases and women's health; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays; microbiology laboratory automation and plated media products; fluorescence-activated cell sorters and analyzers; monoclonal antibodies and kits for performing cell analysis; reagent systems for life science research; molecular indexing and next-generation sequencing sample preparation for genomics research; clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers; and cell culture media supplements for biopharmaceutical manufacturing. The company markets its products through independent distribution channels and sales representatives to healthcare institutions, life science researchers, clinical laboratories, pharmaceutical industry, and general public. Becton, Dickinson and Company was founded in 1897 and is based in Franklin Lakes, New Jersey.

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