Reviewing Baxter International (NYSE:BAX) and Co-Diagnostics (NYSE:CODX)

Co-Diagnostics (NASDAQ:CODX) and Baxter International (NYSE:BAX) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a summary of recent recommendations for Co-Diagnostics and Baxter International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Co-Diagnostics 0 0 2 0 3.00
Baxter International 0 5 13 0 2.72

Co-Diagnostics currently has a consensus target price of $31.50, suggesting a potential upside of 152.20%. Baxter International has a consensus target price of $96.94, suggesting a potential upside of 20.41%. Given Co-Diagnostics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Co-Diagnostics is more favorable than Baxter International.

Profitability

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

Net Margins Return on Equity Return on Assets
Co-Diagnostics 31.42% 56.17% 51.41%
Baxter International 8.10% 20.75% 8.81%

Institutional and Insider Ownership

23.9% of Co-Diagnostics shares are held by institutional investors. Comparatively, 84.2% of Baxter International shares are held by institutional investors. 9.0% of Co-Diagnostics shares are held by insiders. Comparatively, 0.1% of Baxter International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Co-Diagnostics and Baxter International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Co-Diagnostics $220,000.00 1,594.18 -$6.20 million ($0.36) -34.69
Baxter International $11.36 billion 3.59 $1.00 billion $3.31 24.32

Baxter International has higher revenue and earnings than Co-Diagnostics. Co-Diagnostics 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 and Volatility

Co-Diagnostics has a beta of -3.46, indicating that its share price is 446% less volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Summary

Co-Diagnostics beats Baxter International on 8 of the 14 factors compared between the two stocks.

Co-Diagnostics Company Profile

Co-Diagnostics, Inc., a molecular diagnostics company, intends to manufacture and sell reagents used for diagnostic tests that function via the detection and/or analysis of nucleic acid molecules. It also intends to sell diagnostic equipment from other manufacturers as self-contained lab systems. The company was founded in 2013 and is headquartered in Salt Lake City, Utah.

Baxter International Company Profile

Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products. The company operates through North and South America; Europe, Middle East and Africa; and Asia-Pacific segments. The company 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. It 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, 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 molecules. Baxter International Inc. was founded in 1931 and is headquartered in Deerfield, Illinois.

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