Becton, Dickinson and (NYSE: BDX) and Teleflex (NYSE:TFX) are both mid-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitabiliy.
Institutional & Insider Ownership
75.5% of Becton, Dickinson and shares are held by institutional investors. Comparatively, 93.1% of Teleflex shares are held by institutional investors. 1.4% of Becton, Dickinson and shares are held by company insiders. Comparatively, 2.4% of Teleflex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends
Becton, Dickinson and pays an annual dividend of $2.92 per share and has a dividend yield of 1.4%. Teleflex pays an annual dividend of $1.36 per share and has a dividend yield of 0.6%. Becton, Dickinson and pays out 48.3% of its earnings in the form of a dividend. Teleflex pays out 28.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Teleflex has increased its dividend for 45 consecutive years.
Risk and Volatility
Becton, Dickinson and has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Teleflex has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Becton, Dickinson and and Teleflex, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Becton, Dickinson and | 1 | 3 | 6 | 1 | 2.64 |
| Teleflex | 0 | 2 | 4 | 0 | 2.67 |
Becton, Dickinson and presently has a consensus target price of $191.91, indicating a potential downside of 4.99%. Teleflex has a consensus target price of $214.80, indicating a potential upside of 2.24%. Given Teleflex’s stronger consensus rating and higher probable upside, analysts clearly believe Teleflex is more favorable than Becton, Dickinson and.
Profitability
This table compares Becton, Dickinson and and Teleflex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Becton, Dickinson and | 10.67% | 25.37% | 7.92% |
| Teleflex | 11.75% | 16.17% | 8.17% |
Valuation and Earnings
This table compares Becton, Dickinson and and Teleflex’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Becton, Dickinson and | $12.32 billion | 3.50 | $3.20 billion | $6.05 | 33.39 |
| Teleflex | $1.93 billion | 4.90 | $505.98 million | $4.82 | 43.59 |
Becton, Dickinson and has higher revenue and earnings than Teleflex. Becton, Dickinson and is trading at a lower price-to-earnings ratio than Teleflex, indicating that it is currently the more affordable of the two stocks.
Summary
Teleflex beats Becton, Dickinson and on 11 of the 18 factors compared between the two stocks.
Becton, Dickinson and Company Profile
Becton, Dickinson and Company (BD) is a global medical technology company engaged in the development, manufacture and sale of a range of medical supplies, devices, laboratory equipment and diagnostic products. The Company operates through two segments: BD Medical and BD Life Sciences. The BD Medical segment produces an array of medical technologies and devices that are used to help improve healthcare delivery in a range of settings. BD Medical consists of various business units, including diabetes care, medication and procedural solutions, medication management solutions and pharmaceutical systems. The BD Life Sciences segment provides products for the safe collection and transport of diagnostics specimens, and instruments and reagent systems to detect a range of infectious diseases, healthcare-associated infections and cancers. The Company’s BD Life Sciences segment consists of various business units, including preanalytical systems, diagnostic systems and biosciences.
Teleflex Company Profile
Teleflex Incorporated is a provider of medical technology products. The Company designs, develops, manufactures and supplies single-use medical devices used by hospitals and healthcare providers for diagnostic and therapeutic procedures in critical care and surgical applications. The Company operates through six segments: Vascular North America; Anesthesia North America; Surgical North America; Europe, the Middle East and Africa (EMEA); Asia, and Original Equipment Manufacturer (OEM). The Company’s products include oxygen therapy products, aerosol therapy products, spirometry products, and ventilation management products, which are offered under Hudson RCI brand. As of December 31, 2016, it manufactured its products at approximately 30 manufacturing sites, with manufacturing operations located in the Czech Republic, Germany, Malaysia, Mexico and the United States. Its all others businesses include single-use respiratory, urology and cardiac care products, as well as capital equipment.
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