Becton, Dickinson and Company

(New York Stock Exchange)
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Slightly Bullish +15

Should Becton Dickinson Stock Holders Look At Boston Scientific Instead? - Trefis

Earnings report Guidance raised Operational disruption AI-generated analysis

πŸ“ˆ Becton Dickinson stock has gained 32.9% year-to-date, significantly outperforming the S&P 500's 12.0% gain.

πŸ“‰ Boston Scientific lowered its fiscal 2026 revenue growth forecast to a midpoint of 6.0% due to market slowdowns and a cyberattack.

πŸ’° Becton Dickinson raised its adjusted EPS forecast for fiscal 2026, expecting revenue growth in the high single-digit range.

πŸ“‰ Becton Dickinson expects low single-digit revenue growth in fiscal 2027 with a specific drag of 200 basis points from its Alaris business.

πŸ’΅ Boston Scientific recorded an operating margin of 21.0% over the four quarters to June 30, 2026, compared to 14.4% for Becton Dickinson.

🏦 Becton Dickinson maintains a net leverage ratio of about 2.9 times with a long-term target of 2.5 times.

πŸ’Έ Boston Scientific trades at 3.2 times sales while Becton Dickinson trades at 2.3 times sales based on recent performance metrics.

πŸ“‰ Boston Scientific faces gross margin pressure from its WATCHMAN, electrophysiology segments, and the Penumbra deal effects.

πŸ’° Becton Dickinson offers a dividend yield of 2.2%, whereas Boston Scientific does not pay any dividends.

πŸš€ Boston Scientific revenue grew 16.2% on average over the last three twelve-month periods compared to 7.1% for Becton Dickinson.

Bullish Signals
  • Becton Dickinson raised its adjusted EPS forecast for fiscal 2026, projecting revenue growth toward the high end of its low single-digit range.
  • Becton Dickinson stock has delivered a strong year-to-date performance with a gain of 32.9%, significantly outpacing the broader market.
  • The company offers a dividend yield of 2.2% compared to Boston Scientific, which pays no dividends.
Risk Factors
  • Becton Dickinson anticipates a drag of 200 basis points on revenue growth in fiscal 2027 due to challenges within its Alaris business.
  • Becton Dickinson recorded a loss in fiscal Q2 2026, contributing to thin net margins of only 4.0% over the latest twelve months.
Full Analysis
Becton Dickinson (BDX) and Boston Scientific (BSX) are being compared as investment alternatives within the healthcare sector, with BDX showing a year-to-date gain of 32.9% against the broader market. The analysis highlights that while BDX trades at a higher earnings multiple of 55.7x compared to BSX's 18.0x, this valuation premium is driven by thin net margins of 4.0% and recent fiscal Q2 losses. Becton Dickinson management recently raised its adjusted EPS forecast for fiscal 2026, projecting revenue growth toward the high end of its low single-digit range. However, the company anticipates a drag of 200 basis points on revenue growth in fiscal 2027 specifically due to challenges within its Alaris business unit. In contrast to BDX's cautious outlook, Boston Scientific has lowered its fiscal 2026 revenue growth forecast to 6.0% amid a sharp slowdown in the WATCHMAN market and share losses in electrophysiology. Additionally, BSX faces potential material impacts from a cyberattack disrupting manufacturing and shipments, which complicates its third-quarter and full-year results.