Critical Comparison: Baxter International (NYSE:BAX) and CompuMed (OTCMKTS:CMPD)

Baxter International (NYSE:BAX) and CompuMed (OTCMKTS:CMPD) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Profitability

This table compares Baxter International and CompuMed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baxter International	-1.42%	16.96%	5.24%
CompuMed	2.27%	4.83%	3.33%

Valuation and Earnings

This table compares Baxter International and CompuMed”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baxter International	$10.64 billion	1.08	-$649.00 million	($0.30)	-74.52
CompuMed	$6.22 million	0.79	$30,000.00	$0.12	30.83

CompuMed has lower revenue, but higher earnings than Baxter International. Baxter International is trading at a lower price-to-earnings ratio than CompuMed, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Baxter International has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, CompuMed has a beta of -0.05, meaning that its share price is 105% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Baxter International and CompuMed, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baxter International	1	6	3	0	2.20
CompuMed	0	0	0	0	0.00

Baxter International currently has a consensus target price of $30.11, suggesting a potential upside of 34.70%. Given Baxter International’s stronger consensus rating and higher possible upside, analysts plainly believe Baxter International is more favorable than CompuMed.

Institutional & Insider Ownership

90.2% of Baxter International shares are held by institutional investors. 0.2% of Baxter International shares are held by insiders. Comparatively, 22.0% of CompuMed shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Baxter International beats CompuMed on 9 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 CompuMed

CompuMed, Inc., an enterprise telemedicine solutions company, provides clinical care services for patients and medical facilities. It offers telecardiology and teleradiology services that provide real-time access to U.S. Board-Certified specialists through cloud-based technology and integrated medical devices to medical facilities worldwide. The company also provides enterprise telemedicine solutions; a suite of telecardiology services and diagnostic exam interpretations for pediatric and adult patients, including electrocardiogram (ECG) devices, echocardiogram, ECG, vascular, holter, nuclear, and video consults; and reading, transcription, reporting, storage, and video consultations in the areas of Vscan, X-ray, ultrasound, mammography, computed tomography, magnetic resonance imaging, and radiologist video consults. It also offers OsteoGram software that works in combination with standard or digital X-ray equipment to support osteoporosis screening, diagnosis, and therapy monitoring. In addition, the company provides mobile ECG and ultrasound solutions that provide patients with immediate access to its board-certified specialists; and medical devices. It serves organ procurement organizations, rural healthcare, and correctional healthcare industries. CompuMed, Inc. was founded in 1973 and is headquartered in Los Angeles, California.