Boston Scientific Corporation (BSX) and Danaher Corporation (DHR) Critical Survey
Boston Scientific Corporation (NYSE: BSX) and Danaher Corporation (NYSE:DHR) are both large-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.
This table compares Boston Scientific Corporation and Danaher Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Boston Scientific Corporation||9.04%||23.62%||9.01%|
Risk & Volatility
Boston Scientific Corporation has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Danaher Corporation has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Boston Scientific Corporation and Danaher Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Boston Scientific Corporation||0||4||13||0||2.76|
Boston Scientific Corporation currently has a consensus price target of $30.46, indicating a potential upside of 3.37%. Danaher Corporation has a consensus price target of $91.86, indicating a potential upside of 6.18%. Given Danaher Corporation’s higher possible upside, analysts clearly believe Danaher Corporation is more favorable than Boston Scientific Corporation.
Institutional & Insider Ownership
90.4% of Boston Scientific Corporation shares are held by institutional investors. Comparatively, 75.7% of Danaher Corporation shares are held by institutional investors. 0.7% of Boston Scientific Corporation shares are held by company insiders. Comparatively, 12.2% of Danaher Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Danaher Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.6%. Boston Scientific Corporation does not pay a dividend. Danaher Corporation pays out 17.8% of its earnings in the form of a dividend. Boston Scientific Corporation has raised its dividend for 3 consecutive years.
Valuation and Earnings
This table compares Boston Scientific Corporation and Danaher Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Boston Scientific Corporation||$8.71 billion||4.64||$2.31 billion||$0.58||50.81|
|Danaher Corporation||$17.43 billion||3.45||$4.16 billion||$3.14||27.55|
Danaher Corporation has higher revenue and earnings than Boston Scientific Corporation. Danaher Corporation is trading at a lower price-to-earnings ratio than Boston Scientific Corporation, indicating that it is currently the more affordable of the two stocks.
Boston Scientific Corporation beats Danaher Corporation on 10 of the 17 factors compared between the two stocks.
Boston Scientific Corporation Company Profile
Boston Scientific Corporation is a developer, manufacturer and marketer of medical devices that are used in a range of interventional medical specialties. The Company offers its products by seven businesses: Interventional Cardiology, Cardiac Rhythm Management, Endoscopy, Peripheral Interventions, Urology and Pelvic Health, Neuromodulation, and Electrophysiology. It operates in three segments: Cardiovascular, Rhythm Management and MedSurg. Its Cardiovascular segment consists of Interventional Cardiology and Peripheral Interventions businesses. Rhythm Management consists of Cardiac Rhythm Management and Electrophysiology businesses. MedSurg consists of Endoscopy, Urology and Pelvic Health, and Neuromodulation businesses. Its Interventional Cardiology product offerings include balloon catheters, rotational atherectomy systems, guide wires, guide catheters and embolic protection devices and diagnostic catheters used in percutaneous transluminal coronary angioplasty (PTCA) procedures.
Danaher Corporation Company Profile
Danaher Corporation (Danaher) designs, manufactures and markets professional, medical, industrial and commercial products and services. The Company operates through four segments: Life Sciences, which offers a range of research tools that scientists use to study the basic building blocks of life, including genes, proteins, metabolites and cells, in order to understand the causes of disease, identify new therapies and test new drugs and vaccines; Diagnostics; which offers analytical instruments, reagents, consumables, software and services; Dental, which provides products that are used to diagnose, treat and prevent disease and ailments of the teeth, gums and supporting bone, and Environmental & Applied Solutions, which consists of various lines of business, including water quality and product identification. As of December 31, 2016, Danaher’s research and development, manufacturing, sales, distribution, service and administrative facilities were located in over 60 countries.
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