In a deal that makes sense for both sides, Becton Dickinson is buying Edwards' Critical Care business for $4.2 billion. We're maintaining our fair value estimates for both companies as the price tag doesn't appear excessive and the strategic fit and growth prospects for the business improve under the BD's umbrella.
The pharmaceutical business is the star of BD's portfolio. We expect robust growth to continue driven by demand for injectables.
BD's China medication delivery segment is facing competitive bidding challenges, which will pressure the overall growth in China in the upcoming years.
|
Metric
|
BDX
|
JNJ
|
MDT
|
|---|---|---|---|
Price/Earnings (Normalized) | 19.23 | 14.03 | 15.80 |
Price/Book Value | 2.65 | 5.04 | 2.20 |
Price/Sales | 3.47 | 4.12 | 3.46 |
Price/Cash Flow | 19.17 | 15.86 | 15.38 |
|
Metric
|
BDX
|
JNJ
|
MDT
|
|---|---|---|---|
Quick Ratio | 0.46 | 0.84 | 1.46 |
Current Ratio | 1.08 | 1.17 | 2.30 |
Interest Coverage | 4.17 | 23.57 | 8.86 |
|
Metric
|
BDX
|
JNJ
|
MDT
|
|---|---|---|---|
Return on Assets (Normalized) | 3.59% | 12.64% | 7.75% |
Return on Equity (Normalized) | 7.46% | 31.72% | 13.75% |
Return on Invested Capital (Normalized) | 5.23% | 20.11% | 9.87% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
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Market Cap
|
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