RMD vs. BAX, PODD, TFX, GMED, DXCM, BSX, WST, SWAV, SOLV, and PEN
Should you be buying ResMed stock or one of its competitors? The main competitors of ResMed include Baxter International (BAX), Insulet (PODD), Teleflex (TFX), Globus Medical (GMED), DexCom (DXCM), Boston Scientific (BSX), West Pharmaceutical Services (WST), Shockwave Medical (SWAV), NYSE:SOLV (SOLV), and Penumbra (PEN). 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 superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, community ranking, media sentiment, profitability, institutional ownership, risk, dividends and earnings.
In the previous week, ResMed had 27 more articles in the media than Baxter International. MarketBeat recorded 37 mentions for ResMed and 10 mentions for Baxter International. ResMed's average media sentiment score of 0.84 beat Baxter International's score of 0.42 indicating that ResMed is being referred to more favorably in the media.
ResMed has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.
55.0% of ResMed shares are owned by institutional investors. Comparatively, 90.2% of Baxter International shares are owned by institutional investors. 1.2% of ResMed shares are owned by company insiders. Comparatively, 0.2% of Baxter International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
ResMed has a net margin of 20.91% compared to Baxter International's net margin of 17.77%. ResMed's return on equity of 24.92% beat Baxter International'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.
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 2.9%. ResMed pays out 29.5% of its earnings in the form of a dividend. Baxter International pays out 22.2% 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, suggesting a potential downside of 7.00%. Baxter International has a consensus target price of $46.30, suggesting a potential upside of 15.38%. Given Baxter International's higher possible upside, analysts clearly believe Baxter International is more favorable than ResMed.
Baxter International received 313 more outperform votes than ResMed when rated by MarketBeat users. Likewise, 66.30% of users gave Baxter International an outperform vote while only 52.93% of users gave ResMed an outperform vote.
Summary
ResMed beats Baxter International on 12 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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