Analyzing Boston Scientific (BSX) and The Competition

Boston Scientific (NYSE:BSX) is one of 511 publicly-traded companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its peers? We will compare Boston Scientific to similar companies based on the strength of its valuation, earnings, risk, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Boston Scientific and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boston Scientific	16.62%	18.61%	10.58%
Boston Scientific Competitors	-304.20%	-315.07%	-22.11%

Institutional & Insider Ownership

89.1% of Boston Scientific shares are owned by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 0.3% of Boston Scientific shares are owned by insiders. Comparatively, 14.9% of shares of all “Healthcare Equipment & Supplies” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Boston Scientific has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Boston Scientific’s peers have a beta of 2.57, meaning that their average share price is 157% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Boston Scientific and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Scientific	2	8	20	1	2.65
Boston Scientific Competitors	4290	10574	18359	830	2.46

Boston Scientific currently has a consensus price target of $61.43, indicating a potential upside of 36.00%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 20.48%. Given Boston Scientific’s stronger consensus rating and higher possible upside, equities analysts plainly believe Boston Scientific is more favorable than its peers.

Valuation and Earnings

This table compares Boston Scientific and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Boston Scientific	$20.07 billion	$2.90 billion	19.14
Boston Scientific Competitors	$1.88 billion	$136.81 million	12.57

Boston Scientific has higher revenue and earnings than its peers. Boston Scientific is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Boston Scientific beats its peers on 11 of the 13 factors compared.

Boston Scientific Company Profile

Boston Scientific is a medical technology company that develops, manufactures and markets devices used in minimally invasive procedures across a range of medical specialties. Founded in 1979, the company is headquartered in Marlborough, Massachusetts. Its products support areas including cardiovascular care, endoscopy, urology and neuromodulation. They include catheter-based devices and therapies for conditions affecting the heart and blood vessels, as well as devices used in diagnostic and therapeutic procedures involving the digestive and urinary systems.