Analyzing Nuwellis (NASDAQ:NUWE) and Baxter International (NYSE:BAX)

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

Volatility & Risk

Nuwellis has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nuwellis	-123.38%	-623.14%	-147.34%
Baxter International	-9.27%	16.57%	5.24%

Analyst Ratings

This is a summary of current recommendations for Nuwellis and Baxter International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuwellis	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 13.00%. Given Baxter International’s stronger consensus rating and higher possible upside, analysts plainly believe Baxter International is more favorable than Nuwellis.

Valuation and Earnings

This table compares Nuwellis 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
Nuwellis	$8.27 million	0.34	-$17.52 million	($132.59)	-0.01
Baxter International	$11.24 billion	1.19	-$957.00 million	($2.07)	-12.47

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

Insider & Institutional Ownership

3.1% of Nuwellis shares are owned by institutional investors. Comparatively, 90.2% of Baxter International shares are owned by institutional investors. 1.6% of Nuwellis 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Baxter International beats Nuwellis on 11 of the 14 factors compared between the two stocks.

About Nuwellis

Nuwellis, Inc., a medical device company, develops, manufactures, and commercializes medical devices used in ultrafiltration therapy. The company offers Aquadex FlexFlow and Aquadex SmartFlow systems, which are used to treat patients suffering from fluid overload due to heart failure. Its Aquadex FlexFlow system includes a console, disposable blood circuit set, and disposable catheter. The company sells its products to hospitals and clinics through its direct salesforce in the United States; and through independent specialty distributors in Austria, Belarus, Brazil, Colombia, the Czech Republic, Germany, Greece, Hong Kong, India, Israel, Italy, Panama, Romania, Singapore, Slovakia, Spain, Switzerland, Thailand, the United Arab Emirates, and the United Kingdom. The company was formerly known as CHF Solutions, Inc. and changed its name to Nuwellis, Inc. in April 2021. Nuwellis, Inc. was founded in 1999 and is headquartered in Eden Prairie, Minnesota.

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.