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.
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 businesses based on the strength of their earnings, community ranking, dividends, media sentiment, valuation, profitability, institutional ownership, risk and analyst recommendations.
Baxter International has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, ResMed has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.
In the previous week, ResMed had 4 more articles in the media than Baxter International. MarketBeat recorded 12 mentions for ResMed and 8 mentions for Baxter International. Baxter International's average media sentiment score of 0.92 beat ResMed's score of 0.47 indicating that ResMed is being referred to more favorably in the news media.
Baxter International received 316 more outperform votes than ResMed when rated by MarketBeat users. Likewise, 66.30% of users gave Baxter International an outperform vote while only 52.82% of users gave ResMed an outperform vote.
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 insiders. Comparatively, 1.2% of ResMed shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
ResMed has a net margin of 19.77% compared to ResMed's net margin of 17.77%. Baxter International's return on equity of 23.86% beat ResMed's return on equity.
Baxter International pays an annual dividend of $1.16 per share and has a dividend yield of 2.9%. ResMed pays an annual dividend of $1.92 per share and has a dividend yield of 1.0%. Baxter International pays out 22.2% of its earnings in the form of a dividend. ResMed pays out 31.7% 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. ResMed has increased its dividend for 12 consecutive years. Baxter International is clearly the better dividend stock, given its higher yield and lower payout ratio.
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 currently has a consensus target price of $46.30, suggesting a potential upside of 15.09%. ResMed has a consensus target price of $199.20, suggesting a potential upside of 8.60%. Given ResMed's higher possible upside, analysts plainly believe Baxter International is more favorable than ResMed.
Summary
ResMed beats Baxter International on 13 of the 21 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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