RMD vs. BAX, PODD, DXCM, 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), Insulet (PODD), DexCom (DXCM), 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.
Baxter International (NYSE:BAX) and ResMed (NYSE:RMD) are both large-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their community ranking, analyst recommendations, risk, earnings, media sentiment, profitability, dividends, valuation and institutional ownership.
Baxter International pays an annual dividend of $1.16 per share and has a dividend yield of 3.4%. ResMed pays an annual dividend of $1.92 per share and has a dividend yield of 0.9%. Baxter International pays out 22.3% of its earnings in the form of a dividend. ResMed pays out 29.5% 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 has raised its dividend for 8 consecutive years and ResMed has raised its dividend for 12 consecutive years. Baxter International is clearly the better dividend stock, given its higher yield and lower payout ratio.
90.2% of Baxter International shares are held by institutional investors. Comparatively, 55.0% of ResMed shares are held by institutional investors. 0.2% of Baxter International shares are held by company insiders. Comparatively, 1.2% of ResMed shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Baxter International has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, ResMed has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.
Baxter International received 313 more outperform votes than ResMed when rated by MarketBeat users. Likewise, 66.18% of users gave Baxter International an outperform vote while only 52.93% of users gave ResMed an outperform vote.
In the previous week, Baxter International had 15 more articles in the media than ResMed. MarketBeat recorded 20 mentions for Baxter International and 5 mentions for ResMed. Baxter International's average media sentiment score of 0.88 beat ResMed's score of 0.33 indicating that ResMed is being referred to more favorably in the news media.
ResMed has a net margin of 20.91% compared to ResMed's net margin of 17.79%. Baxter International's return on equity of 24.43% beat ResMed's return on equity.
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 presently has a consensus price target of $45.18, suggesting a potential upside of 33.46%. ResMed has a consensus price target of $202.80, suggesting a potential downside of 2.11%. Given ResMed's higher possible upside, equities research analysts clearly believe Baxter International is more favorable than ResMed.
Summary
ResMed beats Baxter International on 11 of the 20 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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