Contrasting Becton, Dickinson and Company (BDX) and Its Rivals

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

Volatility & Risk

Becton, Dickinson and Company has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, Becton, Dickinson and Company’s competitors have a beta of 2.56, meaning that their average stock price is 156% more volatile than the S&P 500.

Insider and 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, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Becton, Dickinson and Company pays an annual dividend of $4.20 per share and has a dividend yield of 2.0%. Becton, Dickinson and Company pays out 126.5% 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 2.2% and pay out 46.6% 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Becton, Dickinson and Company and its competitors, as provided by MarketBeat.

	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	4266	10513	18268	826	2.46

Becton, Dickinson and Company presently has a consensus price target of $185.07, suggesting a potential downside of 12.03%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 20.57%. 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	$21.84 billion	$1.68 billion	63.37
Becton, Dickinson and Company Competitors	$1.89 billion	$138.79 million	11.21

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.

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	4.52%	14.79%	6.93%
Becton, Dickinson and Company Competitors	-278.16%	-150.10%	-21.89%

Summary

Becton, Dickinson and Company beats its competitors on 9 of the 15 factors compared.

About Becton, Dickinson and Company

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide. The company operates in three segments: BD Medical, BD Life Sciences, and BD Interventional. The BD Medical segment provides peripheral intravenous (IV) and advanced peripheral catheters, central lines, acute dialysis catheters, vascular access technology, vascular care and preparation products, needle-free IV connectors and extensions sets, closed-system drug transfer devices, hazardous drug detections, hypodermic syringes and needles, anesthesia needles and trays, enteral syringes, and sharps disposal systems; IV medication safety and infusion therapy delivery systems, medication compounding workflow systems, automated medication dispensing and supply management systems, and medication inventory optimization and tracking systems; and prefillable drug delivery systems. The BD Life Sciences segment offers specimen and blood collection products; automated blood and tuberculosis culturing, molecular testing, microorganism identification and drug susceptibility, and liquid-based cytology systems, as well as rapid diagnostic assays, microbiology laboratory automation products, and plated media products; and fluorescence-activated cell sorters and analyzers, antibodies and kits, reagent systems, and solutions for single-cell gene expression analysis, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers. The BD Interventional segment provides hernia and soft tissue repair, biological and bioresorbable grafts, biosurgery, and other surgical products; surgical infection prevention; peripheral intervention products; and urology and critical care products. The company was founded in 1897 and is headquartered in Franklin Lakes, New Jersey.