Becton Dickinson and (NYSE:BDX) and Hill-Rom (NYSE:HRC) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.
Institutional & Insider Ownership
84.5% of Becton Dickinson and shares are held by institutional investors. Comparatively, 81.3% of Hill-Rom shares are held by institutional investors. 0.1% of Becton Dickinson and shares are held by company insiders. Comparatively, 0.7% of Hill-Rom shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Becton Dickinson and pays an annual dividend of $3.08 per share and has a dividend yield of 1.2%. Hill-Rom pays an annual dividend of $0.84 per share and has a dividend yield of 0.8%. Becton Dickinson and pays out 28.0% of its earnings in the form of a dividend. Hill-Rom pays out 17.7% 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. Becton Dickinson and has raised its dividend for 47 consecutive years and Hill-Rom has raised its dividend for 8 consecutive years. Becton Dickinson and is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Becton Dickinson and and Hill-Rom’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Becton Dickinson and||$15.98 billion||4.27||$311.00 million||$11.01||23.00|
|Hill-Rom||$2.47 billion||2.83||$252.40 million||$4.75||22.05|
Becton Dickinson and has higher revenue and earnings than Hill-Rom. Hill-Rom 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.
Risk and Volatility
Becton Dickinson and has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Hill-Rom has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.
This table compares Becton Dickinson and and Hill-Rom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Becton Dickinson and||5.88%||14.58%||5.81%|
This is a breakdown of current ratings and recommmendations for Becton Dickinson and and Hill-Rom, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Becton Dickinson and||0||4||6||1||2.73|
Becton Dickinson and presently has a consensus target price of $264.45, indicating a potential upside of 4.43%. Hill-Rom has a consensus target price of $108.71, indicating a potential upside of 3.80%. Given Becton Dickinson and’s stronger consensus rating and higher probable upside, analysts clearly believe Becton Dickinson and is more favorable than Hill-Rom.
Becton Dickinson and beats Hill-Rom on 13 of the 18 factors compared between the two stocks.
About Becton Dickinson and
Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products worldwide. The company's BD Medical segment offers peripheral IV and advanced peripheral catheters, central lines, acute dialysis catheters, vascular care and preparation products, needle-free IV connectors and extensions sets, IV fluids, closed-system drug transfer devices, hazardous drug detection, hypodermic syringes and needles, anesthesia needles and trays, enteral syringes, sharps disposal systems; infusion pumps and dedicated disposables, medication compounding workflow systems, automated medication dispensing, automated supply management systems, medication inventory optimization and tracking systems; syringes, pen needles, and other products for diabetes care; and prefillable drug delivery systems. Its BD Life Sciences segment provides specimen and blood collection products and systems; 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, monoclonal antibodies and kits, reagent systems, bench-side solutions, and molecular indexing and next-generation sequencing sample preparation products, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers. The company's BD Interventional segment offers hernia and soft tissue repair, biological and bioresorbable grafts, biosurgery, and other surgical products; surgical infection prevention, thoracic and abdominal drainage, and surgical and laparoscopic instrumentation products; peripheral intervention products; and urology and critical care products. Becton, Dickinson and Company was founded in 1897 and is based in Franklin Lakes, New Jersey.
Hill-Rom Holdings, Inc. operates as a medical technology company worldwide. It operates in three segments: Patient Support Systems, Front Line Care, and Surgical Solutions. The company offers medical surgical beds, intensive care unit beds, and bariatric patient beds, lifts and other patient mobility devices, non-invasive therapeutic products and surfaces, and information technologies and software solutions; and medical equipment management services, as well as sells equipment service contracts for its capital equipment. It also provides patient monitoring and diagnostics products, such as blood pressure, physical assessment, vital signs monitoring, diagnostic cardiopulmonary, diabetic retinopathy screening, and thermometry products; and respiratory health products comprising Vest System, VitalCough System, MetaNeb System, and Monarch systems to assist patients in the mobilization of retained blockages. In addition, the company offers surgical solutions that include surgical tables, lights, and pendants; positioning devices for use in shoulder, hip, spinal, and lithotomy surgeries, as well as platform-neutral positioning accessories for operating room tables; and operating room surgical safety and accessory products, which comprise scalpels and blades, light handle systems, skin markers, and other disposable products. Further, it is involved in the sales and rental of products to acute and extended care facilities through direct sales force and distributors; sales and rental of products directly to patients in the home; and sales to primary care facilities through distributors. Additionally, the company offers continuum of clinical care, including acute care and primary care, as well as clinical research organizations. Hill-Rom Holdings, Inc. was founded in 1969 and is headquartered in Chicago, Illinois.
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