Westaim (OTCMKTS:WEDXF) and Baxter International (NYSE:BAX) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Institutional & Insider Ownership
84.2% of Baxter International shares are owned by institutional investors. 4.2% of Westaim shares are owned by insiders. Comparatively, 0.1% of Baxter International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Westaim has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Westaim and Baxter International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Baxter International has a consensus price target of $96.94, suggesting a potential upside of 18.68%. Given Baxter International’s higher possible upside, analysts clearly believe Baxter International is more favorable than Westaim.
Valuation and Earnings
This table compares Westaim 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|
|Westaim||$9.17 million||26.36||$8.52 million||N/A||N/A|
|Baxter International||$11.36 billion||3.64||$1.00 billion||$3.31||24.68|
Baxter International has higher revenue and earnings than Westaim.
This table compares Westaim and Baxter International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Westaim pays an annual dividend of $0.37 per share and has a dividend yield of 21.9%. Baxter International pays an annual dividend of $0.98 per share and has a dividend yield of 1.2%. Baxter International pays out 29.6% of its earnings in the form of a dividend. Baxter International has raised its dividend for 4 consecutive years.
Baxter International beats Westaim on 10 of the 15 factors compared between the two stocks.
Westaim Company Profile
The Westaim Corporation is a private equity firm specializing in direct and indirect investments through acquisitions, joint ventures, secondary investments both direct and indirect, fund of fund investments, and other arrangements. For direct investments, the firm invests in early venture, mid venture, late venture, middle market, later stage, mature, emerging growth, PIPEs, and buyout transactions. For fund of fund investments, it seeks to invest in private equity funds, venture capital funds, and hedge funds. The firm seeks to provide long term capital to businesses operating in the global financial services industry. It typically acquires controlling interests in businesses. The firm seeks to acquire debt, equity, or derivative securities of both public and private companies. It invests with the objective of providing its shareholders with capital appreciation and real wealth preservation. The firm seeks to provide its portfolio companies with advisory services including, but not limited to, advice on capital allocation, financing strategy, performance measurement and merger and acquisition support. It also seeks to partner with like-minded providers of third party capital to help supplement the firm's own capital, when completing acquisitions. The firm generally seeks to hold its investments for seven to 15 years. The Westaim Corporation was founded in 1996 and is based in Toronto, Canada.
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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