Becton, Dickinson and Company (BDX) vs West Pharmaceutical Services, Inc. (WST)

Becton, Dickinson and Company and West Pharmaceutical Services, Inc. are both Medical Instruments & Supplies companies. Becton, Dickinson and Company is the larger, with a market value of $52.8B against $27.0B — 2.0× the size. West Pharmaceutical Services, Inc. trades at the lower P/E: 48.7× against 57.8×. Becton, Dickinson and Company grew revenue faster over the last twelve months: 13.1% against 12.4%. West Pharmaceutical Services, Inc. has the higher net margin (17.0% vs 4.20%) and the higher return on invested capital (15.4% vs 3.89%). Both pay a dividend; Becton, Dickinson and Company yields more (2.07% vs 0.23%). Across the 23 metrics below, West Pharmaceutical Services, Inc. leads on 12 and Becton, Dickinson and Company on 11.

Valuation

Metric BDX WST Medical Instruments & Supplies median
P/E 57.76 48.66 33.75
P/S 2.35 8.15 2.52
P/B 2.16 9.07 2.48
Price to free cash flow 16.45 62.60 25.19
EV/EBITDA 13.72 31.19 14.62
EV/Sales 2.91 8.08 2.88
Earnings yield 1.73% 2.06% (2.67%)
Free cash flow yield 6.08% 1.60% 0.09%

Profitability

Metric BDX WST Medical Instruments & Supplies median
Gross margin 46.73% 36.79% 54.29%
Operating margin 10.30% 20.45% 1.07%
Net margin 4.20% 16.98% (1.61%)
Free cash flow margin 14.29% 13.13% 1.08%
Return on equity 3.77% 19.09% (1.32%)
Return on assets 1.78% 14.07% 0.00%
Return on invested capital 3.89% 15.42% 0.00%

Growth

Metric BDX WST Medical Instruments & Supplies median
Revenue growth (TTM) 13.14% 12.38% 8.85%
EPS growth (last fiscal year) (1.85%) 1.49% 8.65%
Revenue growth, 5-year CAGR 6.32% 7.44% 9.17%
Net income growth, 5-year CAGR 16.95% 7.36% 0.00%

Health

Metric BDX WST Medical Instruments & Supplies median
Debt to equity 0.55 0.07 0.10
Current ratio 0.87 2.82 2.48
Net debt to EBITDA 3.33 (0.78) 0.89

Dividend

Metric BDX WST Medical Instruments & Supplies median
Dividend yield 2.07% 0.23% 1.11%
Payout ratio 1.20 0.11 0.27

Size

Metric BDX WST Medical Instruments & Supplies median
Market cap 52.78b 26.96b 619.84m

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