Analyzing iRadimed (NASDAQ:IRMD) and Becton, Dickinson and Company (NYSE:BDX)

iRadimed (NASDAQ:IRMD) and Becton, Dickinson and Company (NYSE:BDX) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Dividends

iRadimed pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. Becton, Dickinson and Company pays an annual dividend of $4.20 per share and has a dividend yield of 2.0%. iRadimed pays out 42.8% of its earnings in the form of a dividend. Becton, Dickinson and Company pays out 101.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. iRadimed has raised its dividend for 1 consecutive years and 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
iRadimed	26.85%	23.90%	20.89%
Becton, Dickinson and Company	4.52%	14.79%	6.93%

Analyst Recommendations

This is a breakdown of recent recommendations for iRadimed and Becton, Dickinson and Company, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iRadimed	0	1	3	1	3.00
Becton, Dickinson and Company	1	8	8	1	2.50

iRadimed presently has a consensus price target of $120.00, suggesting a potential upside of 38.76%. Becton, Dickinson and Company has a consensus price target of $197.47, suggesting a potential downside of 7.00%. Given iRadimed’s stronger consensus rating and higher possible upside, research analysts plainly believe iRadimed is more favorable than Becton, Dickinson and Company.

Insider and Institutional Ownership

92.3% of iRadimed shares are owned by institutional investors. Comparatively, 87.0% of Becton, Dickinson and Company shares are owned by institutional investors. 34.6% of iRadimed shares are owned by company insiders. Comparatively, 0.4% of Becton, Dickinson and Company shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares iRadimed and Becton, Dickinson and Company”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iRadimed	$83.81 million	13.20	$22.48 million	$1.87	46.25
Becton, Dickinson and Company	$21.84 billion	2.68	$1.68 billion	$4.14	51.29

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

Volatility and Risk

iRadimed has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Becton, Dickinson and Company has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.

Summary

iRadimed beats Becton, Dickinson and Company on 10 of the 17 factors compared between the two stocks.

About iRadimed

IRadimed Corp. engages in the development, manufacture, marketing, and distribution of Magnetic Resonance Imaging compatible medical devices. It also provides a non-magnetic Intravenous infusion pump system that is specifically designed for use during MRI procedures. The company was founded by Roger Susi in July 1992 and is headquartered in Winter Springs, FL.

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.