Critical Review: Baxter International (NYSE:BAX) versus Ayr Wellness (OTCMKTS:AYRWF)

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

Volatility & Risk

Baxter International has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Ayr Wellness has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Baxter International	-3.09%	17.38%	5.57%
Ayr Wellness	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baxter International	$10.64 billion	1.08	-$649.00 million	($0.66)	-33.77
Ayr Wellness	$463.63 million	0.01	-$359.31 million	($2.67)	-0.01

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Baxter International and Ayr Wellness, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baxter International	3	9	2	0	1.93
Ayr Wellness	0	1	0	0	2.00

Baxter International currently has a consensus target price of $21.40, suggesting a potential downside of 4.00%. Given Baxter International’s higher probable upside, analysts plainly believe Baxter International is more favorable than Ayr Wellness.

Insider and Institutional Ownership

90.2% of Baxter International shares are owned by institutional investors. Comparatively, 0.9% of Ayr Wellness shares are owned by institutional investors. 0.2% of Baxter International shares are owned by insiders. Comparatively, 8.1% of Ayr Wellness shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Baxter International beats Ayr Wellness on 8 of the 14 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 Ayr Wellness

Ayr Wellness Inc. operates as a vertically-integrated multi-state cannabis operator that cultivates, manufactures, and retails cannabis products and branded cannabis packaged goods. It owns and operates a chain of cannabis retail stores under AYR, Liberty Health Sciences, and The Dispensary brand names. The company was formerly known as Ayr Strategies Inc. and changed its name to Ayr Wellness Inc. in February 2021. Ayr Wellness Inc. was incorporated in 2017 and is headquartered in Miami, Florida.