Baxter International (NYSE:BAX – Get Free Report) and PolyPid (NASDAQ:PYPD – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.
Profitability
This table compares Baxter International and PolyPid’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Baxter International | -5.05% | 16.67% | 4.93% |
| PolyPid | N/A | -624.10% | -129.28% |
Institutional & Insider Ownership
90.2% of Baxter International shares are owned by institutional investors. Comparatively, 26.5% of PolyPid shares are owned by institutional investors. 0.2% of Baxter International shares are owned by insiders. Comparatively, 24.7% of PolyPid shares are owned 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.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Baxter International | $10.64 billion | 1.39 | -$649.00 million | ($1.28) | -22.58 |
| PolyPid | N/A | N/A | -$29.02 million | ($4.97) | -0.55 |
PolyPid has lower revenue, but higher earnings than Baxter International. Baxter International is trading at a lower price-to-earnings ratio than PolyPid, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Baxter International and PolyPid, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Baxter International | 1 | 4 | 5 | 0 | 2.40 |
| PolyPid | 0 | 0 | 3 | 1 | 3.25 |
Baxter International presently has a consensus target price of $38.56, indicating a potential upside of 33.39%. PolyPid has a consensus target price of $11.33, indicating a potential upside of 313.47%. Given PolyPid’s stronger consensus rating and higher possible upside, analysts plainly believe PolyPid is more favorable than Baxter International.
Risk and Volatility
Baxter International has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, PolyPid has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.
Summary
PolyPid beats Baxter International on 8 of the 14 factors compared between the two stocks.
About Baxter International
Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. The company operates through four segments: Medical Products and Therapies, Healthcare Systems and Technologies, Pharmaceuticals, and Kidney Care. The company offers sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; generic injectable pharmaceuticals; surgical hemostat and sealant products, advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices, as well as advanced equipment for the surgical space, including surgical video technologies, precision positioning devices, and other accessories. It also provides administrative sets; adhesion prevention products; inhaled anesthesia; drug compounding; chronic and acute dialysis therapies and services, including peritoneal dialysis (PD), hemodialysis (HD), continuous renal replacement therapies (CRRT), and other organ support therapies. The company’s products are used in hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, ambulatory surgery centers, doctors’ offices, and patients at home under physician supervision. The company sells its products through direct sales force, as well as through independent distributors, drug wholesalers, and specialty pharmacy or other alternate site providers in approximately 100 countries. It has an agreement with Celerity Pharmaceutical, LLC to develop acute care generic injectable premix and oncolytic products; and a collaborative research agreement with Miromatrix Medical Inc. aiming to advance care for patients with acute liver failure. Baxter International Inc. was incorporated in 1931 and is headquartered in Deerfield, Illinois.
About PolyPid
PolyPid Ltd., a clinical-stage biopharmaceutical company, developing targeted, locally administered, and prolonged-release therapeutics using its proprietary polymer-lipid encapsulation matrix (PLEX) technology to address unmet medical needs. Its lead product candidate is D-PLEX100, which is in a pivotal Phase 3 confirmatory trial for prevention of surgical site infections (SSIs) in patients undergoing abdominal colorectal surgery with large incisions. It is also developing OncoPLEX, for the treatment of intra-tumoral cancer. PolyPid Ltd. was incorporated in 2008 and is headquartered in Petah Tikva, Israel.
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