Baxter International (NYSE: BAX) is one of 84 public companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it contrast to its competitors? We will compare Baxter International to related companies based on the strength of its profitability, institutional ownership, dividends, analyst recommendations, valuation, earnings and risk.

Institutional & Insider Ownership

83.6% of Baxter International shares are held by institutional investors. Comparatively, 63.1% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by institutional investors. 0.1% of Baxter International shares are held by insiders. Comparatively, 12.9% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Baxter International and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Baxter International $10.28 billion $2.23 billion 37.95
Baxter International Competitors $827.23 million $159.49 million 36.33

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

Profitability

This table compares Baxter International and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baxter International 8.85% 14.82% 8.06%
Baxter International Competitors -127.09% -36.26% -10.19%

Dividends

Baxter International pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. Baxter International pays out 38.8% of its earnings in the form of a dividend. As a group, “Medical Equipment, Supplies & Distribution” companies pay a dividend yield of 0.8% and pay out 37.3% of their earnings in the form of a dividend.

Risk & Volatility

Baxter International has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Baxter International’s competitors have a beta of 1.06, suggesting that their average share price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Baxter International and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baxter International 1 4 6 1 2.58
Baxter International Competitors 327 1500 2623 105 2.55

Baxter International currently has a consensus target price of $65.73, indicating a potential upside of 4.96%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 7.47%. Given Baxter International’s competitors higher possible upside, analysts clearly believe Baxter International has less favorable growth aspects than its competitors.

Summary

Baxter International beats its competitors on 9 of the 15 factors compared.

About Baxter International

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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