Baxter International (NYSE:BAX) vs. Allurion Technologies (NYSE:ALUR) Critical Contrast

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

Institutional & Insider Ownership

21.4% of Allurion Technologies shares are owned by institutional investors. Comparatively, 90.2% of Baxter International shares are owned by institutional investors. 8.1% of Allurion Technologies shares are owned by company insiders. Comparatively, 0.2% of Baxter International shares are owned 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 Allurion Technologies and Baxter International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allurion Technologies	-199.96%	N/A	-77.13%
Baxter International	-9.70%	16.15%	5.24%

Volatility & Risk

Allurion Technologies has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Allurion Technologies and Baxter International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allurion Technologies	1	1	1	0	2.00
Baxter International	3	8	2	0	1.92

Allurion Technologies currently has a consensus target price of $45.00, indicating a potential upside of 7,658.62%. Baxter International has a consensus target price of $19.73, indicating a potential downside of 13.74%. Given Allurion Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Allurion Technologies is more favorable than Baxter International.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allurion Technologies	$17.21 million	0.51	-$7.20 million	($2.03)	-0.29
Baxter International	$11.24 billion	1.05	-$957.00 million	($2.13)	-10.74

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

Summary

Baxter International beats Allurion Technologies on 8 of the 14 factors compared between the two stocks.

About Allurion Technologies

Allurion Technologies Inc. focuses on ending obesity with a weight loss platform to treat people who are overweight. Its platform, the Allurion Program, features swallowable and procedure-less intragastric balloon for weight loss (the Allurion Balloon), as well as offers access to AI-powered remote patient monitoring tools, a proprietary behavior change program, secure messaging, and video telehealth that are delivered by the Allurion Virtual Care Suite. Allurion Technologies Inc. is headquartered in Natick, Massachusetts.

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.