RMD vs. BAX, DXCM, PODD, TFX, GMED, BDX, BSX, SYK, WST, and SWAV
Should you be buying ResMed stock or one of its competitors? The main competitors of ResMed include Baxter International (BAX), DexCom (DXCM), Insulet (PODD), Teleflex (TFX), Globus Medical (GMED), Becton, Dickinson and Company (BDX), Boston Scientific (BSX), Stryker (SYK), West Pharmaceutical Services (WST), and Shockwave Medical (SWAV). These companies are all part of the "surgical & medical instruments" industry.
ResMed (NYSE:RMD) and Baxter International (NYSE:BAX) are both large-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, media sentiment, dividends, community ranking, profitability and analyst recommendations.
Baxter International has higher revenue and earnings than ResMed. Baxter International is trading at a lower price-to-earnings ratio than ResMed, indicating that it is currently the more affordable of the two stocks.
Baxter International received 313 more outperform votes than ResMed when rated by MarketBeat users. Likewise, 66.24% of users gave Baxter International an outperform vote while only 52.93% of users gave ResMed an outperform vote.
ResMed has a net margin of 20.91% compared to Baxter International's net margin of 17.79%. ResMed's return on equity of 24.43% beat Baxter International's return on equity.
55.0% of ResMed shares are held by institutional investors. Comparatively, 90.2% of Baxter International shares are held by institutional investors. 1.2% of ResMed shares are held by insiders. Comparatively, 0.2% of Baxter International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
ResMed pays an annual dividend of $1.92 per share and has a dividend yield of 0.9%. Baxter International pays an annual dividend of $1.16 per share and has a dividend yield of 3.3%. ResMed pays out 29.5% of its earnings in the form of a dividend. Baxter International pays out 22.3% 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. Baxter International is clearly the better dividend stock, given its higher yield and lower payout ratio.
ResMed presently has a consensus target price of $202.80, indicating a potential downside of 7.22%. Baxter International has a consensus target price of $45.73, indicating a potential upside of 29.72%. Given Baxter International's higher probable upside, analysts plainly believe Baxter International is more favorable than ResMed.
In the previous week, ResMed had 3 more articles in the media than Baxter International. MarketBeat recorded 12 mentions for ResMed and 9 mentions for Baxter International. ResMed's average media sentiment score of 0.95 beat Baxter International's score of 0.35 indicating that ResMed is being referred to more favorably in the media.
ResMed has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.
Summary
ResMed beats Baxter International on 11 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding RMD and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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