Becton, Dickinson and Company (NYSE:BDX) vs. Straumann (OTCMKTS:SAUHY) Financial Analysis

Becton, Dickinson and Company (NYSE:BDX) and Straumann (OTCMKTS:SAUHY) are both large-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Becton, Dickinson and Company and Straumann, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Becton, Dickinson and Company	0	7	4	0	2.36
Straumann	0	0	0	3	4.00

Becton, Dickinson and Company presently has a consensus target price of $212.88, indicating a potential upside of 20.82%. Given Becton, Dickinson and Company’s higher probable upside, research analysts clearly believe Becton, Dickinson and Company is more favorable than Straumann.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Becton, Dickinson and Company	7.28%	15.99%	7.36%
Straumann	N/A	N/A	N/A

Insider & Institutional Ownership

87.0% of Becton, Dickinson and Company shares are held by institutional investors. 0.4% of Becton, Dickinson and Company 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.

Valuation & Earnings

This table compares Becton, Dickinson and Company and Straumann”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Becton, Dickinson and Company	$20.18 billion	2.50	$1.71 billion	$5.24	33.62
Straumann	$2.84 billion	6.77	$441.09 million	N/A	N/A

Becton, Dickinson and Company has higher revenue and earnings than Straumann.

Risk & Volatility

Becton, Dickinson and Company has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, Straumann has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Dividends

Becton, Dickinson and Company pays an annual dividend of $4.16 per share and has a dividend yield of 2.4%. Straumann pays an annual dividend of $0.03 per share and has a dividend yield of 0.2%. Becton, Dickinson and Company pays out 79.4% 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 Company has raised its dividend for 53 consecutive years. Becton, Dickinson and Company is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Becton, Dickinson and Company beats Straumann on 11 of the 16 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 Straumann

Straumann Holding AG provides tooth replacement and orthodontic solutions worldwide. It researches, develops, manufactures, and supplies dental implants, instruments, CADCAM prosthetics, orthodontic aligners, biomaterials, and digital solutions for use in tooth correction, replacement, and restoration, as well as to prevent tooth loss. The company offers dental implants and components made from titanium, titanium alloy, and ceramics; prosthetic elements made od ceramics, metal or polymer; and clear aligners. In addition, it offers resins for 3D printing and thermoplastics for clear aligner production; and biomaterials for tissue generation. Further, it provides digital equipment comprising scanners, milling machines and 3D printers. Further, it offers training and education services. The company provides its products to general dentists, specialists, and dental technicians and laboratories, as well as customers, such as distributors, hospitals, universities, and dental service organizations in approximately 100 countries through a network of distribution subsidiaries and partners. Straumann Holding AG was founded in 1954 and is headquartered in Basel, Switzerland.