Teleflex (NYSE: TFX) and Becton, Dickinson and (NYSE:BDX) are both mid-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitabiliy, analyst recommendations, valuation, institutional ownership and earnings.
Insider & Institutional Ownership
93.0% of Teleflex shares are owned by institutional investors. Comparatively, 75.7% of Becton, Dickinson and shares are owned by institutional investors. 2.4% of Teleflex shares are owned by insiders. Comparatively, 1.4% of Becton, Dickinson and shares are owned by 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.
Valuation and Earnings
This table compares Teleflex and Becton, Dickinson and’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Teleflex||$1.93 billion||4.96||$505.98 million||$5.23||40.73|
|Becton, Dickinson and||$12.32 billion||3.40||$3.20 billion||$3.50||56.18|
Becton, Dickinson and has higher revenue and earnings than Teleflex. Teleflex is trading at a lower price-to-earnings ratio than Becton, Dickinson and, indicating that it is currently the more affordable of the two stocks.
This table compares Teleflex and Becton, Dickinson and’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Becton, Dickinson and||6.25%||22.53%||7.25%|
Risk and Volatility
Teleflex has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Becton, Dickinson and has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Teleflex and Becton, Dickinson and, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Becton, Dickinson and||1||3||6||1||2.64|
Teleflex presently has a consensus target price of $219.80, indicating a potential upside of 3.19%. Becton, Dickinson and has a consensus target price of $191.91, indicating a potential downside of 2.40%. Given Teleflex’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Teleflex is more favorable than Becton, Dickinson and.
Teleflex pays an annual dividend of $1.36 per share and has a dividend yield of 0.6%. Becton, Dickinson and pays an annual dividend of $2.92 per share and has a dividend yield of 1.5%. Teleflex pays out 26.0% of its earnings in the form of a dividend. Becton, Dickinson and pays out 83.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Becton, Dickinson and has raised its dividend for 45 consecutive years. Becton, Dickinson and is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Teleflex beats Becton, Dickinson and on 10 of the 17 factors compared between the two stocks.
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.
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.
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