Baxter International (NYSE: BAX) and C.R. Bard (NYSE:BCR) are both large-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.
Insider and Institutional Ownership
84.2% of Baxter International shares are owned by institutional investors. Comparatively, 79.4% of C.R. Bard shares are owned by institutional investors. 0.1% of Baxter International shares are owned by insiders. Comparatively, 0.8% of C.R. Bard shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Baxter International and C.R. Bard, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Baxter International currently has a consensus price target of $67.55, suggesting a potential upside of 5.03%. C.R. Bard has a consensus price target of $295.43, suggesting a potential downside of 11.04%. Given Baxter International’s stronger consensus rating and higher probable upside, research analysts clearly believe Baxter International is more favorable than C.R. Bard.
Baxter International pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. C.R. Bard pays an annual dividend of $1.04 per share and has a dividend yield of 0.3%. Baxter International pays out 34.4% of its earnings in the form of a dividend. C.R. Bard pays out 13.7% 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. C.R. Bard has increased its dividend for 45 consecutive years.
This table compares Baxter International and C.R. Bard’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Baxter International has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, C.R. Bard has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.
Valuation and Earnings
This table compares Baxter International and C.R. Bard’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Baxter International||$10.16 billion||3.45||$4.97 billion||$1.86||34.58|
|C.R. Bard||$3.71 billion||6.52||$531.40 million||$7.59||43.75|
Baxter International has higher revenue and earnings than C.R. Bard. Baxter International is trading at a lower price-to-earnings ratio than C.R. Bard, indicating that it is currently the more affordable of the two stocks.
Baxter International Company Profile
Baxter International Inc., through its subsidiaries, provides renal and hospital products. The Company operates through two segments: Hospital Products and Renal. Its Hospital Products business manufactures sterile intravenous (IV) solutions and administration sets, premixed drugs and drug-reconstitution systems, pre-filled vials and syringes for injectable drugs, IV nutrition products, parenteral nutrition therapies, infusion pumps, inhalation anesthetics and biosurgery products. The Renal business offers a portfolio to meet the needs of patients with end-stage renal disease, or irreversible kidney disease and acute kidney injuries, including technologies and therapies for peritoneal dialysis (PD), hemodialysis (HD), continuous renal replacement therapy (CRRT) and additional dialysis services. Its products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices and by patients at home under physician supervision.
C.R. Bard Company Profile
C. R. Bard, Inc. (Bard) is engaged in designing, manufacturing, packaging, distribution and sale of medical, surgical, diagnostic and patient care devices. The Company operates through the manufacture and sale of medical devices segment. It sells a range of products to hospitals, individual healthcare professionals, extended care facilities and alternate site facilities on a global basis. Its vascular products cover a range of minimally invasive devices for the treatment of peripheral vascular disease and end-stage renal disease. Its urology products include basic urology drainage products, fecal and urinary continence products, urological specialty products and Targeted Temperature Management products. Its oncology products cover a range of devices used in the treatment and management of various cancers, and other diseases and disorders. Its surgical specialty products include implanted patches and fixation devices for hernia and soft tissue repairs.
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