TELA Bio (NASDAQ:TELA – Get Free Report) and Baxter International (NYSE:BAX – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Insider and Institutional Ownership
94.3% of TELA Bio shares are held by institutional investors. Comparatively, 90.2% of Baxter International shares are held by institutional investors. 5.1% of TELA Bio shares are held by company insiders. Comparatively, 0.2% of Baxter International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares TELA Bio and Baxter International”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TELA Bio | $80.28 million | 0.46 | -$38.83 million | ($0.77) | -1.07 |
| Baxter International | $11.24 billion | 1.19 | -$957.00 million | ($2.07) | -12.47 |
TELA Bio has higher earnings, but lower revenue than Baxter International. Baxter International is trading at a lower price-to-earnings ratio than TELA Bio, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for TELA Bio and Baxter International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TELA Bio | 1 | 1 | 3 | 0 | 2.40 |
| Baxter International | 2 | 9 | 2 | 0 | 2.00 |
TELA Bio presently has a consensus target price of $2.20, suggesting a potential upside of 167.80%. Baxter International has a consensus target price of $22.45, suggesting a potential downside of 13.00%. Given TELA Bio’s stronger consensus rating and higher probable upside, research analysts plainly believe TELA Bio is more favorable than Baxter International.
Profitability
This table compares TELA Bio and Baxter International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TELA Bio | -51.53% | -1,320.81% | -59.39% |
| Baxter International | -9.27% | 16.57% | 5.24% |
Risk & Volatility
TELA Bio has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.
Summary
TELA Bio beats Baxter International on 9 of the 14 factors compared between the two stocks.
About TELA Bio
TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. It markets its products through a single direct sales force, principally in the United States. The company was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.
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.
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