Head to Head Comparison: IRIDEX (NASDAQ:IRIX) & Baxter International (NYSE:BAX)

Baxter International (NYSE:BAX – Get Free Report) and IRIDEX (NASDAQ:IRIX – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Risk and Volatility

Baxter International has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, IRIDEX has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Valuation and Earnings

This table compares Baxter International and IRIDEX”s gross revenue, earnings per share (EPS) and valuation.

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

Analyst Ratings

This is a summary of recent ratings for Baxter International and IRIDEX, as reported by MarketBeat.com.

Baxter International currently has a consensus target price of $22.45, suggesting a potential downside of 8.24%. IRIDEX has a consensus target price of $3.00, suggesting a potential upside of 341.18%. Given IRIDEX’s higher possible upside, analysts plainly believe IRIDEX is more favorable than Baxter International.

Profitability

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

Insider and Institutional Ownership

90.2% of Baxter International shares are owned by institutional investors. Comparatively, 20.1% of IRIDEX shares are owned by institutional investors. 0.2% of Baxter International shares are owned by company insiders. Comparatively, 8.6% of IRIDEX shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

IRIDEX beats Baxter International on 7 of the 13 factors compared between the two stocks.

About Baxter International

(Get Free Report)

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 IRIDEX

(Get Free Report)

IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology. It offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser systems, which are used for the treatment of retinal disorders; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser photocoagulation systems that are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. The company also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures; and laser indirect ophthalmoscope for use in procedures to treat peripheral retinal disorders. It offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system to perform MicroPulse transscleral laser therapy; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products for use in vitrectomy procedures. The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, veterinary practices, and office clinics. It markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was incorporated in 1989 and is headquartered in Mountain View, California.