Financial Review: Valeritas (OTCMKTS:VLRXQ) and Baxter International (NYSE:BAX)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baxter International	$11.24 billion	0.77	-$957.00 million	($1.85)	-9.01
Valeritas	N/A	N/A	N/A	N/A	N/A

Valeritas has lower revenue, but higher earnings than Baxter International.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baxter International	2	9	2	0	2.00
Valeritas	0	0	0	0	0.00

Baxter International presently has a consensus price target of $19.90, suggesting a potential upside of 19.36%. Given Baxter International’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Baxter International is more favorable than Valeritas.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Baxter International	-8.51%	16.95%	5.62%
Valeritas	N/A	N/A	N/A

Insider and Institutional Ownership

90.2% of Baxter International shares are owned by institutional investors. 0.2% of Baxter International shares are owned by insiders. Comparatively, 1.0% of Valeritas shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Baxter International beats Valeritas on 7 of the 9 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 Valeritas

Valeritas Holdings, Inc., a commercial-stage medical technology company, focuses on the development and commercialization of technologies to treat patients with Type 2 diabetes in the United States. The company offers V-Go, a wearable insulin delivery device for basal-bolus therapy. It also develops V-Go Prefill that is in the design-development stage for eliminating the device-filling process and the need for EZ fill refrigeration for patients with Type 2 diabetes; and V-Go SIM for real-time tracking information of basal and bolus dosing utilization. The company sells V-Go to third-party wholesalers and medical supply distributors. Valeritas Holdings, Inc. was founded in 2006 and is headquartered in Bridgewater, New Jersey.