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 valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Teleflex pays an annual dividend of $1.36 per share and has a dividend yield of 0.7%. 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. Teleflex has raised its dividend for 45 consecutive years.
Institutional and Insider Ownership
93.0% of Teleflex shares are held by institutional investors. Comparatively, 75.7% of Becton, Dickinson and shares are held by institutional investors. 2.4% of Teleflex shares are held by insiders. Comparatively, 1.4% of Becton, Dickinson and shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for Teleflex and Becton, Dickinson and, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Becton, Dickinson and||1||4||7||1||2.62|
Teleflex currently has a consensus price target of $228.00, suggesting a potential upside of 11.04%. Becton, Dickinson and has a consensus price target of $193.42, suggesting a potential downside of 3.47%. Given Teleflex’s stronger consensus rating and higher probable upside, equities analysts plainly believe Teleflex is more favorable than Becton, Dickinson and.
Earnings & Valuation
This table compares Teleflex and Becton, Dickinson and’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Teleflex||$1.99 billion||4.64||$521.06 million||$5.23||39.26|
|Becton, Dickinson and||$12.16 billion||3.51||$3.19 billion||$3.50||57.25|
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.
Volatility and Risk
Teleflex has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Becton, Dickinson and has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.
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%|
Teleflex beats Becton, Dickinson and on 11 of the 17 factors compared between the two stocks.
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.
About Becton, Dickinson and
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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