Utah Medical Products (NASDAQ: UTMD) and Baxter International (NYSE:BAX) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
This is a summary of recent ratings for Utah Medical Products and Baxter International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Utah Medical Products||0||0||0||0||N/A|
Baxter International has a consensus target price of $71.62, indicating a potential upside of 5.49%. Given Baxter International’s higher possible upside, analysts clearly believe Baxter International is more favorable than Utah Medical Products.
Utah Medical Products pays an annual dividend of $1.08 per share and has a dividend yield of 1.1%. Baxter International pays an annual dividend of $0.64 per share and has a dividend yield of 0.9%. Utah Medical Products pays out 47.2% of its earnings in the form of a dividend. Baxter International pays out 49.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Utah Medical Products is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Utah Medical Products and Baxter International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Utah Medical Products||20.54%||18.85%||16.57%|
Volatility and Risk
Utah Medical Products has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.
Valuation & Earnings
This table compares Utah Medical Products and Baxter International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Utah Medical Products||$41.41 million||8.53||$8.50 million||$2.29||41.44|
|Baxter International||$10.56 billion||3.47||$717.00 million||$1.29||52.63|
Baxter International has higher revenue and earnings than Utah Medical Products. Utah Medical Products is trading at a lower price-to-earnings ratio than Baxter International, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
67.1% of Utah Medical Products shares are owned by institutional investors. Comparatively, 85.6% of Baxter International shares are owned by institutional investors. 8.8% of Utah Medical Products shares are owned by company insiders. Comparatively, 0.1% of Baxter International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Utah Medical Products Company Profile
Utah Medical Products, Inc. (UTMD) is engaged in the business of producing medical devices that are disposable and for hospital use. The Company’s product categories include labor and delivery/obstetrics, including fetal monitoring accessories, Vacuum-Assisted Delivery Systems (VAD), and other labor and delivery tools; neonatal intensive care, including DISPOSA-HOOD, DELTRAN PLUS and GESCO; gynecology/urology/electrosurgery, including LETZ System, FINESSE+ Generator, EPITOME, PATHFINDER PLUS, HOLMIUM LASER FIBRES, LIBERTY System, ENDOCURETTE, TVUS/HSG-Cath and LUMIN, and blood pressure monitoring, including DELTRAN Disposable Pressure Transducer (DPT), and pressure monitoring accessories, components and other molded parts. UTMD markets a range of medical devices used in critical care areas, especially the neonatal intensive care unit, the labor and delivery department and the women’s health center in hospitals, as well as products sold to outpatient clinics and physician’s offices.
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.
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