This article will analyze five companies that manufacture medical devices. The medical device market segment has seen relatively little volatility. However, some companies in this market segment will be of interest to investors that like safe, long-term investments. In my opinion, only these five stocks fit that bill.
Baxter International Inc. (BAX) has a market cap of $30.1 billion, with a price to earnings ratio of 14.05. The stock has traded in a 52 week range between $48.03 and $62.50. The stock is currently trading around $53. The company reported third quarter revenues of $3.4 billion compared to revenues of $3.2 billion in the third quarter of 2010. Third quarter net income was $576 million compared to net income of $525 million in the third quarter of 2010.
One of BAX’s competitors is Grifols S.A. (GRFS). GRFS is currently trading around $5.50 with a market cap of $3.28 billion and a price to earnings ratio of 25.15. GRFS does not pay a dividend, versus BAX, whose dividend yields 2.3%.
BAX is a medical device maker that has increased its net income in six out of the last seven years, but in 2010, the company’s net income decreased by 57% to $1.4 billion. The company has paid quarterly dividends since 2007, and since that time it has increased the dividend four times by 84.5%. The company’s stock performance has been very mediocre. The stock is up by 2.1% over the last 52 weeks and is down by 7.5% over the last three years. Another statistic that does not bode well for Baxter is its insider trading record. To continue reading, click here