Analyzing GBS (NYSE:GBS) and Baxter International (NYSE:BAX)

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

Risk and Volatility

GBS has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Baxter International has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for GBS and Baxter International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GBS	0	0	0	0	N/A
Baxter International	1	8	2	0	2.09

Baxter International has a consensus target price of $42.00, suggesting a potential upside of 14.24%. Given Baxter International’s higher probable upside, analysts plainly believe Baxter International is more favorable than GBS.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GBS	$440,000.00	50.42	-$8.31 million	($0.56)	-2.66
Baxter International	$15.00 billion	1.25	$2.66 billion	$5.20	7.07

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GBS	N/A	-85.64%	-54.42%
Baxter International	16.51%	18.06%	5.21%

Institutional & Insider Ownership

2.8% of GBS shares are owned by institutional investors. Comparatively, 90.2% of Baxter International shares are owned by institutional investors. 0.3% of GBS shares are owned by insiders. Comparatively, 0.2% of Baxter International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Baxter International beats GBS on 10 of the 13 factors compared between the two stocks.

About GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.

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.