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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baxter International $10.16 billion 3.67 $4.97 billion $1.85 36.99
Landauer N/A N/A N/A $1.92 35.00

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

Risk & Volatility

Baxter International has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Landauer has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Dividends

Baxter International pays an annual dividend of $0.64 per share and has a dividend yield of 0.9%. Landauer pays an annual dividend of $1.10 per share and has a dividend yield of 1.6%. Baxter International pays out 34.6% of its earnings in the form of a dividend. Landauer pays out 57.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a summary of current ratings and target prices for Baxter International and Landauer, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baxter International 0 5 8 1 2.71
Landauer 0 1 0 0 2.00

Baxter International presently has a consensus target price of $68.92, suggesting a potential upside of 0.71%. Given Baxter International’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Baxter International is more favorable than Landauer.

Insider & Institutional Ownership

83.8% of Baxter International shares are held by institutional investors. Comparatively, 79.6% of Landauer shares are held by institutional investors. 0.1% of Baxter International shares are held by company insiders. Comparatively, 6.6% of Landauer shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Baxter International 9.88% 15.00% 8.12%
Landauer 16.55% 96.20% 13.62%

Summary

Baxter International beats Landauer on 8 of the 15 factors compared between the two stocks.

Baxter International Company Profile

Baxter International Inc., through its subsidiaries, provides renal and hospital products. The Company operates through two segments: Hospital Products and Renal. Its Hospital Products business manufactures sterile intravenous (IV) solutions and administration sets, premixed drugs and drug-reconstitution systems, pre-filled vials and syringes for injectable drugs, IV nutrition products, parenteral nutrition therapies, infusion pumps, inhalation anesthetics and biosurgery products. The Renal business offers a portfolio to meet the needs of patients with end-stage renal disease, or irreversible kidney disease and acute kidney injuries, including technologies and therapies for peritoneal dialysis (PD), hemodialysis (HD), continuous renal replacement therapy (CRRT) and additional dialysis services. Its products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices and by patients at home under physician supervision.

Landauer Company Profile

Landauer, Inc. is a provider of technical and analytical services to determine occupational and environmental radiation exposure. The Company is a provider of outsourced medical physics services, and a provider of radiology related medical products. The Company operates through three segments: Radiation Measurement, Medical Physics and Medical Products. The Company provides radiation dosimetry services to hospitals, medical and dental offices, universities, national laboratories, nuclear facilities and other industries. Medical physics services are provided through the Company’s Landauer Medical Physics (LMP) division. The Company uses LMP as a platform to expand into the medical physics services market, serving domestic hospitals, radiation therapy centers and imaging centers. The Company’s Medical Products segment provides medical consumable accessories used in radiology, radiation therapy and image guided surgery procedures.

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