Head-To-Head Survey: Flora Growth (NASDAQ:FLGC) & Baxter International (NYSE:BAX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Flora Growth	-32.03%	-64.02%	-34.46%
Baxter International	-9.27%	16.57%	5.24%

Volatility and Risk

Flora Growth has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Valuation and Earnings

This table compares Flora Growth and Baxter International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flora Growth	$57.61 million	0.09	-$15.91 million	($32.49)	-0.15
Baxter International	$11.24 billion	1.11	-$957.00 million	($2.07)	-11.62

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Flora Growth and Baxter International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flora Growth	1	0	0	0	1.00
Baxter International	2	9	2	0	2.00

Baxter International has a consensus target price of $22.45, suggesting a potential downside of 6.68%. Given Baxter International’s stronger consensus rating and higher possible upside, analysts clearly believe Baxter International is more favorable than Flora Growth.

Institutional & Insider Ownership

36.0% of Flora Growth shares are held by institutional investors. Comparatively, 90.2% of Baxter International shares are held by institutional investors. 2.3% of Flora Growth shares are held by insiders. Comparatively, 0.2% of Baxter International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Baxter International beats Flora Growth on 10 of the 14 factors compared between the two stocks.

About Flora Growth

Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.

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.