Reviewing Baxter International (NYSE:BAX) and LENSAR (NASDAQ:LNSR)

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

Insider and Institutional Ownership

40.2% of LENSAR shares are owned by institutional investors. Comparatively, 90.2% of Baxter International shares are owned by institutional investors. 65.8% of LENSAR shares are owned by insiders. Comparatively, 0.2% of Baxter International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

LENSAR has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LENSAR	1	0	2	0	2.33
Baxter International	3	10	1	0	1.86

LENSAR currently has a consensus price target of $11.00, indicating a potential upside of 140.17%. Baxter International has a consensus price target of $23.27, indicating a potential downside of 11.74%. Given LENSAR’s stronger consensus rating and higher probable upside, equities analysts plainly believe LENSAR is more favorable than Baxter International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LENSAR	56.07%	-31,190.80%	48.77%
Baxter International	-6.23%	16.23%	5.08%

Valuation & Earnings

This table compares LENSAR and Baxter International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LENSAR	$60.08 million	0.94	-$34.28 million	($0.40)	-11.45
Baxter International	$11.24 billion	1.21	-$957.00 million	($1.41)	-18.70

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

Summary

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

About LENSAR

LENSAR, Inc. is a medical technology company focused on ophthalmic laser systems used in cataract surgery and other procedures involving the eye. The company develops and commercializes femtosecond laser technology designed to assist surgeons with key steps of cataract surgery, including corneal incisions, capsulotomy and lens fragmentation. Its product portfolio includes the LENSAR Laser System, which incorporates image-guidance and planning technologies intended to support precise, customized procedures.

About Baxter International

Baxter International is a global healthcare company that develops and supplies products used in hospitals, clinics and other care settings. Its offerings include intravenous solutions and administration sets, infusion pumps, medication-delivery systems, and products for surgical and hospital care. The company also provides patient-monitoring and connected-care technologies, including products associated with Hillrom, which Baxter acquired in 2021. Its products and services support healthcare professionals and patients in countries around the world.