Becton Dickinson (BDX) & Its Peers Head-To-Head Review

Becton Dickinson (NYSE: BDX) is one of 106 publicly-traded companies in the “Surgical & medical instruments” industry, but how does it compare to its rivals? We will compare Becton Dickinson to similar businesses based on the strength of its earnings, dividends, institutional ownership, valuation, profitability, risk and analyst recommendations.

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 raised its dividend for 46 consecutive years. Becton Dickinson is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

84.0% of Becton Dickinson shares are owned by institutional investors. Comparatively, 46.6% of shares of all “Surgical & medical instruments” companies are owned by institutional investors. 1.0% of Becton Dickinson shares are owned by insiders. Comparatively, 15.8% of shares of all “Surgical & medical instruments” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Becton Dickinson and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Becton Dickinson $12.09 billion $1.10 billion 23.74
Becton Dickinson Competitors $1.51 billion $110.21 million -201.93

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Becton Dickinson and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Becton Dickinson 0 4 10 1 2.80
Becton Dickinson Competitors 538 1990 3885 135 2.55

Becton Dickinson currently has a consensus target price of $240.00, suggesting a potential upside of 6.66%. As a group, “Surgical & medical instruments” companies have a potential upside of 2.86%. Given Becton Dickinson’s stronger consensus rating and higher possible upside, research analysts clearly believe Becton Dickinson is more favorable than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
Becton Dickinson -0.46% 14.27% 5.24%
Becton Dickinson Competitors -74.95% -78.77% -19.30%

Risk & Volatility

Becton Dickinson has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Becton Dickinson’s rivals have a beta of 0.77, meaning that their average stock price is 23% less volatile than the S&P 500.

Summary

Becton Dickinson beats its rivals on 14 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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