RMD vs. BAX, DXCM, PODD, 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), DexCom (DXCM), Insulet (PODD), 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.
ResMed (NYSE:RMD) and Baxter International (NYSE:BAX) are both large-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, community ranking, risk, dividends, analyst recommendations, profitability, institutional ownership, media sentiment and earnings.
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 3.3%. ResMed pays out 29.5% of its earnings in the form of a dividend. Baxter International pays out 22.3% 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.
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 presently has a consensus price target of $202.80, indicating a potential downside of 7.22%. Baxter International has a consensus price target of $45.73, indicating a potential upside of 29.72%. Given Baxter International's higher possible upside, analysts plainly believe Baxter International is more favorable than ResMed.
In the previous week, ResMed had 3 more articles in the media than Baxter International. MarketBeat recorded 11 mentions for ResMed and 8 mentions for Baxter International. ResMed's average media sentiment score of 0.99 beat Baxter International's score of 0.56 indicating that ResMed is being referred to more favorably in the media.
ResMed has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.64, suggesting that its stock price is 36% 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 insiders. Comparatively, 0.2% of Baxter International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Baxter International received 313 more outperform votes than ResMed when rated by MarketBeat users. Likewise, 66.24% of users gave Baxter International an outperform vote while only 52.93% of users gave ResMed an outperform vote.
ResMed has a net margin of 20.91% compared to Baxter International's net margin of 17.79%. ResMed's return on equity of 24.43% beat Baxter International's return on equity.
Summary
ResMed beats Baxter International on 11 of the 19 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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