Head to Head Review: Hero Technologies (OTCMKTS:HENC) versus Baxter International (NYSE:BAX)

Baxter International (NYSE:BAX) and Hero Technologies (OTCMKTS:HENC) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Baxter International and Hero Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baxter International	3	9	2	0	1.93
Hero Technologies	0	0	0	0	0.00

Baxter International presently has a consensus target price of $21.40, indicating a potential upside of 7.62%. Given Baxter International’s stronger consensus rating and higher possible upside, research analysts clearly believe Baxter International is more favorable than Hero Technologies.

Insider and Institutional Ownership

90.2% of Baxter International shares are held by institutional investors. 0.2% of Baxter International shares are held by insiders. Comparatively, 0.2% of Hero Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Baxter International and Hero Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baxter International	$10.64 billion	0.96	-$649.00 million	($0.66)	-30.13
Hero Technologies	N/A	N/A	N/A	N/A	N/A

Hero Technologies has lower revenue, but higher earnings than Baxter International.

Profitability

This table compares Baxter International and Hero Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baxter International	-3.09%	17.38%	5.57%
Hero Technologies	N/A	N/A	N/A

Risk and Volatility

Baxter International has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Hero Technologies has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500.

Summary

Baxter International beats Hero Technologies on 8 of the 10 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 Hero Technologies

Hero Technologies Inc. operates as an early-stage cannabis company. It focuses on the provision of BlackBox, an aeroponic cannabis cultivation system that provides optimal growing conditions to enhance photosynthesis and the cultivation of large flowering plants and create increased harvest efficiencies. The company also intends to offer cannabis genetic engineering farmland for medical and recreational cannabis cultivation, production, distribution, packaging, and retail operations, as well as for dispensaries. The company is based in Dover, Delaware.