Becton, Dickinson and Company (NYSE:BDX) versus Alpha Tau Medical (NASDAQ:DRTS) Critical Analysis

Becton, Dickinson and Company (NYSE:BDX) and Alpha Tau Medical (NASDAQ:DRTS) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

87.0% of Becton, Dickinson and Company shares are held by institutional investors. Comparatively, 2.7% of Alpha Tau Medical shares are held by institutional investors. 0.3% of Becton, Dickinson and Company shares are held by company insiders. Comparatively, 39.5% of Alpha Tau Medical shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Becton, Dickinson and Company and Alpha Tau Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Becton, Dickinson and Company	6.44%	13.57%	6.56%
Alpha Tau Medical	N/A	-31.86%	-26.42%

Analyst Recommendations

This is a summary of recent ratings and price targets for Becton, Dickinson and Company and Alpha Tau Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Becton, Dickinson and Company	0	1	4	0	2.80
Alpha Tau Medical	0	0	4	0	3.00

Becton, Dickinson and Company currently has a consensus price target of $280.00, indicating a potential upside of 20.92%. Alpha Tau Medical has a consensus price target of $12.00, indicating a potential upside of 398.96%. Given Alpha Tau Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Alpha Tau Medical is more favorable than Becton, Dickinson and Company.

Risk & Volatility

Becton, Dickinson and Company has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Alpha Tau Medical has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Valuation and Earnings

This table compares Becton, Dickinson and Company and Alpha Tau Medical’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Becton, Dickinson and Company	$19.37 billion	3.45	$1.48 billion	$4.22	54.87
Alpha Tau Medical	N/A	N/A	-$29.16 million	($0.42)	-5.73

Becton, Dickinson and Company has higher revenue and earnings than Alpha Tau Medical. Alpha Tau Medical is trading at a lower price-to-earnings ratio than Becton, Dickinson and Company, indicating that it is currently the more affordable of the two stocks.

Summary

Becton, Dickinson and Company beats Alpha Tau Medical on 8 of the 12 factors compared between the two stocks.

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.

About Alpha Tau Medical

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.