Baxter International (NYSE: BAX) and Inogen (NASDAQ:INGN) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitabiliy, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Baxter International 8.85% 15.09% 8.23%
Inogen 10.36% 12.45% 10.36%

Analyst Ratings

This is a summary of current ratings and recommmendations for Baxter International and Inogen, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baxter International 1 4 6 1 2.58
Inogen 0 2 1 1 2.75

Baxter International currently has a consensus price target of $65.80, indicating a potential upside of 10.16%. Inogen has a consensus price target of $91.00, indicating a potential downside of 0.88%. Given Baxter International’s higher possible upside, equities analysts clearly believe Baxter International is more favorable than Inogen.

Volatility & Risk

Baxter International has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Inogen has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Insider and Institutional Ownership

85.1% of Baxter International shares are held by institutional investors. 0.1% of Baxter International shares are held by insiders. Comparatively, 5.3% of Inogen shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments 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 1.1%. Inogen does not pay a dividend. Baxter International pays out 38.8% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Baxter International and Inogen’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Baxter International $10.28 billion 3.16 $2.24 billion $1.65 36.20
Inogen $212.34 million 8.90 $35.35 million $1.06 86.61

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

Inogen Company Profile

Inogen, Inc. is a medical technology company. The Company develops, manufactures and markets portable oxygen concentrators used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. The Company’s Inogen One systems concentrate the air around the patient to offer a single source of supplemental oxygen anytime, anywhere with a portable device. Its three portable product offerings, the Inogen One G4, Inogen One G3 and Inogen One G2, at approximately 2.8, 4.8 and 7.0 pounds with a single battery, respectively. Its Inogen One G4, Inogen One G3 and Inogen One G2 are sub-3, sub-5 and sub-10 pound portable oxygen concentrators, respectively. All of its Inogen One systems are equipped with Intelligent Delivery Technology. The Inogen At Home stationary oxygen concentrator allows it to access the non-ambulatory oxygen patient market and serves as a backup to its Inogen One system for ambulatory patients on its rental service.

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