Analyzing Becton, Dickinson and Company (BDX) & Its Competitors

Becton, Dickinson and Company (NYSE:BDX – Get Free Report) is one of 511 publicly-traded companies in the “Healthcare Equipment & Supplies” industry, but how does it contrast to its competitors? We will compare Becton, Dickinson and Company to similar businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Becton, Dickinson and Company 5.66% 14.90% 7.09%
Becton, Dickinson and Company Competitors -304.20% -315.07% -22.11%

Insider & Institutional Ownership

87.0% of Becton, Dickinson and Company shares are owned by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 0.4% of Becton, Dickinson and Company shares are owned by company insiders. Comparatively, 14.9% of shares of all “Healthcare Equipment & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Becton, Dickinson and Company pays an annual dividend of $4.24 per share and has a dividend yield of 2.0%. Becton, Dickinson and Company pays out 102.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare Equipment & Supplies” companies pay a dividend yield of 2.1% and pay out 47.8% of their earnings in the form of a dividend. Becton, Dickinson and Company has increased its dividend for 53 consecutive years. Becton, Dickinson and Company lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

Becton, Dickinson and Company has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, Becton, Dickinson and Company’s competitors have a beta of 2.57, meaning that their average share price is 157% more volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Becton, Dickinson and Company 1 8 8 1 2.50
Becton, Dickinson and Company Competitors 4291 10579 18364 831 2.46

Becton, Dickinson and Company presently has a consensus target price of $197.47, suggesting a potential downside of 8.11%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 21.71%. Given Becton, Dickinson and Company’s competitors higher possible upside, analysts plainly believe Becton, Dickinson and Company has less favorable growth aspects than its competitors.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Becton, Dickinson and Company $19.46 billion $1.15 billion 51.91
Becton, Dickinson and Company Competitors $1.90 billion $135.83 million 5.86

Becton, Dickinson and Company has higher revenue and earnings than its competitors. Becton, Dickinson and Company 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 and Company beats its competitors on 9 of the 15 factors compared.

About Becton, Dickinson and Company

(Get Free Report)

Becton, Dickinson and Company, commonly known as BD, is a global medical technology company that develops and manufactures products used in healthcare, clinical laboratories and life sciences research. Founded in 1897, the company has a long history of producing medical devices and supplies. BD’s products include syringes, needles, infusion systems and medication-management technologies, as well as equipment and supplies for collecting and processing clinical specimens. The company also provides diagnostic systems, laboratory instruments and tools used in areas such as cell analysis and biomedical research.

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