RMD vs. BAX, PODD, DXCM, TFX, BSX, BDX, SYK, WST, PEN, 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), Boston Scientific (BSX), Becton, Dickinson and (BDX), Stryker (SYK), West Pharmaceutical Services (WST), Penumbra (PEN), and Shockwave Medical (SWAV). These companies are all part of the "surgical & medical instruments" industry.
ResMed vs.
Baxter International (NYSE:BAX) and ResMed (NYSE:RMD) are both large-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, media sentiment, dividends, earnings, institutional ownership, community ranking and risk.
ResMed has a net margin of 21.49% compared to Baxter International's net margin of -16.34%. ResMed's return on equity of 25.82% beat Baxter International's return on equity.
Baxter International currently has a consensus target price of $52.38, suggesting a potential upside of 24.79%. ResMed has a consensus target price of $263.43, suggesting a potential upside of 23.37%. Given Baxter International's higher probable upside, analysts plainly believe Baxter International is more favorable than ResMed.
Baxter International has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, ResMed has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.
Baxter International received 324 more outperform votes than ResMed when rated by MarketBeat users. Likewise, 67.10% of users gave Baxter International an outperform vote while only 53.00% of users gave ResMed an outperform vote.
In the previous week, ResMed had 5 more articles in the media than Baxter International. MarketBeat recorded 8 mentions for ResMed and 3 mentions for Baxter International. Baxter International's average media sentiment score of 0.39 beat ResMed's score of 0.07 indicating that Baxter International is being referred to more favorably in the media.
84.8% of Baxter International shares are held by institutional investors. Comparatively, 64.7% of ResMed shares are held by institutional investors. 0.2% of Baxter International shares are held by insiders. Comparatively, 1.4% of ResMed shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
ResMed has lower revenue, but higher earnings than Baxter International. 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 pays an annual dividend of $1.16 per share and has a dividend yield of 2.8%. ResMed pays an annual dividend of $1.76 per share and has a dividend yield of 0.8%. Baxter International pays out -23.8% of its earnings in the form of a dividend. ResMed pays out 30.0% 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 increased its dividend for 7 consecutive years and ResMed has increased its dividend for 2 consecutive years. Baxter International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
ResMed beats Baxter International on 11 of the 21 factors compared between the two stocks.
New MarketBeat Followers Over Time
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.
Media Sentiment Over Time
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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