Glaukos (NYSE:GKOS) vs. Becton, Dickinson and Company (NYSE:BDX) Critical Review

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

Insider & Institutional Ownership

87.0% of Becton, Dickinson and Company shares are owned by institutional investors. Comparatively, 99.0% of Glaukos shares are owned by institutional investors. 0.4% of Becton, Dickinson and Company shares are owned by company insiders. Comparatively, 5.9% of Glaukos shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Becton, Dickinson and Company and Glaukos”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Becton, Dickinson and Company	$21.84 billion	2.43	$1.68 billion	$3.32	57.97
Glaukos	$507.44 million	19.54	-$187.69 million	($3.25)	-51.73

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

Analyst Recommendations

This is a summary of current ratings and target prices for Becton, Dickinson and Company and Glaukos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Becton, Dickinson and Company	1	9	7	0	2.35
Glaukos	1	1	13	0	2.80

Becton, Dickinson and Company presently has a consensus price target of $185.07, suggesting a potential downside of 3.84%. Glaukos has a consensus price target of $181.43, suggesting a potential upside of 7.91%. Given Glaukos’ stronger consensus rating and higher possible upside, analysts clearly believe Glaukos is more favorable than Becton, Dickinson and Company.

Volatility & Risk

Becton, Dickinson and Company has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Glaukos has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Becton, Dickinson and Company	4.52%	14.79%	6.93%
Glaukos	-30.68%	-6.37%	-4.78%

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 Glaukos

Glaukos Corporation, an ophthalmic pharmaceutical and medical technology company, focuses on the development of novel therapies for the treatment of glaucoma, corneal disorders, and retinal diseases. It offers iStent and iStent inject W micro-bypass stents that enhance aqueous humor outflow inserted in cataract surgery to treat mild-to-moderate open-angle glaucoma. The company's product pipeline includes iStent Infinite indicated for use in the treatment of patients with glaucoma uncontrolled by prior medical and surgical therapy; and iDose TR, an intracameral procedural pharmaceutical therapy indicated for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The company markets its products through direct sales organization, as well as through distributors in the United States and internationally. Glaukos Corporation was incorporated in 1998 and is headquartered in Aliso Viejo, California.