Baxter International (BAX) & Tandem Diabetes Care (TNDM) Head-To-Head Contrast
Baxter International (NASDAQ: TNDM) and Tandem Diabetes Care (NASDAQ:TNDM) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Institutional & Insider Ownership
83.0% of Baxter International shares are owned by institutional investors. Comparatively, 62.7% of Tandem Diabetes Care shares are owned by institutional investors. 0.1% of Baxter International shares are owned by company insiders. Comparatively, 9.3% of Tandem Diabetes Care shares are owned by company 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.
This is a summary of recent ratings and target prices for Baxter International and Tandem Diabetes Care, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tandem Diabetes Care||0||3||10||0||2.77|
Baxter International presently has a consensus target price of $75.62, suggesting a potential downside of 2.27%. Tandem Diabetes Care has a consensus target price of $39.42, suggesting a potential downside of 9.62%. Given Baxter International’s higher possible upside, research analysts plainly believe Baxter International is more favorable than Tandem Diabetes Care.
Earnings & Valuation
This table compares Baxter International and Tandem Diabetes Care’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Baxter International||$10.56 billion||3.91||$717.00 million||$2.48||31.20|
|Tandem Diabetes Care||$107.60 million||21.56||-$73.03 million||($12.87)||-3.39|
Baxter International has higher revenue and earnings than Tandem Diabetes Care. Tandem Diabetes Care is trading at a lower price-to-earnings ratio than Baxter International, indicating that it is currently the more affordable of the two stocks.
This table compares Baxter International and Tandem Diabetes Care’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tandem Diabetes Care||-92.85%||N/A||-51.68%|
Baxter International pays an annual dividend of $0.76 per share and has a dividend yield of 1.0%. Tandem Diabetes Care does not pay a dividend. Baxter International pays out 30.6% of its earnings in the form of a dividend.
Volatility and Risk
Baxter International has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Tandem Diabetes Care has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.
Baxter International beats Tandem Diabetes Care on 10 of the 15 factors compared between the two stocks.
About Baxter International
Baxter International Inc. provides a portfolio of healthcare products. The company operates through North and South America; Europe, Middle East and Africa; and Asia-Pacific segments. It offers peritoneal dialysis and hemodialysis, and additional dialysis therapies and services; renal replacement therapies and other organ support therapies focused in the intensive care unit; sterile intravenous (IV) solutions, IV therapies, infusion pumps, administration sets, and drug reconstitution devices; and parenteral nutrition therapies. The company also provides biological products and medical devices, and surgical hemostat and sealant products used in surgical procedures for hemostasis, tissue sealing, and adhesion prevention; premixed and oncology drug platforms, inhaled anesthesia and critical care products, and pharmacy compounding services; and generic injectable pharmaceuticals. Its products are used in hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, and by patients at home under physician supervision. The company sells its products through direct sales force, 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 molecules. Baxter International Inc. was founded in 1931 and is headquartered in Deerfield, Illinois.
About Tandem Diabetes Care
Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States. The company's flagship product is the t:slim X2 insulin delivery system that comprises t:slim X2 pump, its 300-unit disposable insulin cartridge, and an infusion set. It also provides t:flex insulin delivery system that includes t:flex pump, its 480-unit disposable insulin cartridge, and an infusion set; t:slim X2 with G5 integration; and Tandem Device Updater, a PC and Mac-compatible tool that allows users to update their pump's software. In addition, the company offers t:connect diabetes management application, a cloud-based data management application, which provides a visual way to display therapy management data from the pump and supported blood glucose meters for users, their caregivers, and their healthcare providers; t:lock cartridge and infusion set products; and various pump accessories. Its products in development include automated insulin delivery systems; t:slim X2 with Basal IQ; t:slim X2 with control IQ; t:sport insulin delivery system; and connected (mobile) health mobile application. The company was formerly known as Phluid Inc. and changed its name to Tandem Diabetes Care, Inc. in January 2008. Tandem Diabetes Care, Inc. was founded in 2006 and is headquartered in San Diego, California.
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