Head-To-Head Contrast: Baxter International (BAX) vs. Globus Medical (GMED)

Baxter International (NYSE: BAX) and Globus Medical (NYSE:GMED) are both mid-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Baxter International and Globus Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baxter International 9.88% 15.00% 8.12%
Globus Medical 17.54% 13.67% 12.35%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Baxter International and Globus Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baxter International 0 6 5 1 2.58
Globus Medical 1 4 7 0 2.50

Baxter International presently has a consensus target price of $67.55, indicating a potential upside of 5.46%. Globus Medical has a consensus target price of $36.83, indicating a potential downside of 4.95%. Given Baxter International’s stronger consensus rating and higher possible upside, research analysts clearly believe Baxter International is more favorable than Globus Medical.

Valuation and Earnings

This table compares Baxter International and Globus Medical’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baxter International $10.16 billion 3.43 $4.97 billion $1.86 34.44
Globus Medical $563.99 million 6.62 $104.34 million $1.10 35.23

Baxter International has higher revenue and earnings than Globus Medical. Baxter International is trading at a lower price-to-earnings ratio than Globus Medical, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

83.6% of Baxter International shares are owned by institutional investors. Comparatively, 72.2% of Globus Medical shares are owned by institutional investors. 0.1% of Baxter International shares are owned by insiders. Comparatively, 28.2% of Globus Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Baxter International pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. Globus Medical does not pay a dividend. Baxter International pays out 34.4% of its earnings in the form of a dividend.

Volatility and Risk

Baxter International has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Globus Medical has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Summary

Baxter International beats Globus Medical on 10 of the 17 factors compared between the two stocks.

Baxter International Company Profile

Baxter International Inc., through its subsidiaries, provides renal and hospital products. The Company operates through two segments: Hospital Products and Renal. Its Hospital Products business manufactures sterile intravenous (IV) solutions and administration sets, premixed drugs and drug-reconstitution systems, pre-filled vials and syringes for injectable drugs, IV nutrition products, parenteral nutrition therapies, infusion pumps, inhalation anesthetics and biosurgery products. The Renal business offers a portfolio to meet the needs of patients with end-stage renal disease, or irreversible kidney disease and acute kidney injuries, including technologies and therapies for peritoneal dialysis (PD), hemodialysis (HD), continuous renal replacement therapy (CRRT) and additional dialysis services. Its products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices and by patients at home under physician supervision.

Globus Medical Company Profile

Globus Medical, Inc. (Globus) is a medical device company focused on the design, development and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. The Company is focused on implants that promote healing in patients with spine disorders. The Company’s products fall into one of two categories: Innovative Fusion or Disruptive Technologies. The Company sells its products through exclusive sales force in the United States, as well as within North, Central & South America, Europe, Asia, Africa and Australia. The sales force consists of direct sales representatives and distributor sales representatives employed by exclusive independent distributors.

Receive News & Ratings for Baxter International Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Baxter International Inc and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply