Lombard Medical (NASDAQ: EVAR) and Baxter International (NYSE:BAX) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Risk and Volatility

Lombard Medical has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lombard Medical $12.17 million 1.03 -$24.22 million ($1.54) -0.29
Baxter International $10.28 billion 3.33 $2.23 billion $1.65 38.07

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

Dividends

Baxter International pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. Lombard Medical does not pay a dividend. Baxter International pays out 38.8% of its earnings in the form of a dividend.

Insider and Institutional Ownership

40.2% of Lombard Medical shares are owned by institutional investors. Comparatively, 83.6% of Baxter International shares are owned by institutional investors. 0.1% of Baxter International shares are owned by company 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Lombard Medical -320.50% -195.04% -46.78%
Baxter International 8.85% 14.82% 8.06%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lombard Medical 0 0 0 0 N/A
Baxter International 1 4 5 1 2.55

Baxter International has a consensus price target of $65.73, indicating a potential upside of 4.63%. Given Baxter International’s higher possible upside, analysts clearly believe Baxter International is more favorable than Lombard Medical.

Summary

Baxter International beats Lombard Medical on 13 of the 15 factors compared between the two stocks.

Lombard Medical Company Profile

Lombard Medical, Inc. is a medical technology company. The Company specializes in developing, manufacturing, and marketing endovascular stent-grafts that address medical needs in the repair of aortic aneurysms. The Company’s Aorfix is an abdominal aortic aneurysm (AAA) stent-graft for the treatment of AAAs with angulation at the neck of the aneurysm of over 90 degrees. The Company supplies Aorfix pre-loaded into a delivery system, Aorflex, which is designed for accurate placement of Aorfix in the abdominal aorta. Once Aorfix is properly placed within the abdominal aorta, it provides a conduit for blood flow, thereby relieving pressure within the weakened or aneurysmal section of the vessel wall, which reduces the potential for the AAA to rupture. It also offers IntelliFlex, which is a delivery system technology created for Aorfix AAA stent graft, and Altura Endovascular Stent Graft System that offers a simple and predictable solution to the treatment of standard AAA anatomies.

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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