Head to Head Review: Baxter International (NYSE:BAX) and Capricor Therapeutics (NASDAQ:CAPR)

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

Profitability

This table compares Baxter International and Capricor Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baxter International	-1.42%	16.96%	5.24%
Capricor Therapeutics	N/A	-62.71%	-50.82%

Institutional and Insider Ownership

90.2% of Baxter International shares are owned by institutional investors. Comparatively, 21.7% of Capricor Therapeutics shares are owned by institutional investors. 0.2% of Baxter International shares are owned by insiders. Comparatively, 10.5% of Capricor Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Baxter International and Capricor Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baxter International	$10.89 billion	1.09	-$649.00 million	($0.30)	-77.32
Capricor Therapeutics	$22.27 million	16.36	-$40.47 million	($1.64)	-4.86

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

Volatility & Risk

Baxter International has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Capricor Therapeutics 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 summary of current ratings and recommmendations for Baxter International and Capricor Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baxter International	1	6	3	0	2.20
Capricor Therapeutics	0	0	7	1	3.13

Baxter International currently has a consensus price target of $30.11, indicating a potential upside of 29.82%. Capricor Therapeutics has a consensus price target of $22.25, indicating a potential upside of 179.17%. Given Capricor Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Capricor Therapeutics is more favorable than Baxter International.

Summary

Capricor Therapeutics beats Baxter International on 10 of the 15 factors compared between the two stocks.

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.

About Capricor Therapeutics

Capricor Therapeutics, Inc. (NASDAQ:CAPR) is a clinical-stage biotechnology company focused on the discovery, development and commercialization of first-in-class biological therapeutics for the treatment of rare disorders. Capricor’s lead candidate, CAP-1002, is an allogeneic cell therapy that is currently in clinical development for the treatment of Duchenne muscular dystrophy. Capricor has also established itself as one of the leading companies investigating the field of extracellular vesicles and is exploring the potential of CAP-2003, a cell-free, exosome-based candidate, to treat a variety of disorders.