Alcon (ALC) vs Baxter International Inc. (BAX)

Alcon and Baxter International Inc. are both Medical Instruments & Supplies companies. Alcon is the larger, with a market value of $30.9B against $12.2B — 2.5× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Alcon trades at 49.2×. Alcon grew revenue faster over the last twelve months: 8.34% against 5.36%. Alcon has the higher net margin (5.92% vs −9.27%) and the higher return on invested capital (2.38% vs −1.27%). Both pay a dividend; Baxter International Inc. yields more (2.60% vs 0.36%). Across the 21 metrics below, Alcon leads on 16 and Baxter International Inc. on 5.

Valuation

Metric ALC BAX Medical Instruments & Supplies median
P/E 49.21 n/m 34.17
P/S 2.89 1.05 2.83
P/B 1.45 1.96 2.82
Price to free cash flow 19.68 14.82 25.69
EV/EBITDA 12.67 13.34 16.08
EV/Sales 3.19 1.69 3.06
Earnings yield 2.03% (8.86%) (1.84%)
Free cash flow yield 5.08% 6.75% 0.17%

Profitability

Metric ALC BAX Medical Instruments & Supplies median
Gross margin 56.85% 30.08% 54.62%
Operating margin 8.73% (2.39%) 1.64%
Net margin 5.92% (9.27%) 0.00%
Free cash flow margin 14.68% 7.11% 1.61%
Return on equity 2.94% (15.78%) 0.00%
Return on assets 2.06% (5.21%) 0.00%
Return on invested capital 2.38% (1.27%) 0.00%

Growth

Metric ALC BAX Medical Instruments & Supplies median
Revenue growth (TTM) 8.34% 5.36% 9.20%
EPS growth (last fiscal year) (3.41%) (47.24%) —
Revenue growth, 5-year CAGR 8.77% (0.75%) 9.48%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALC BAX Medical Instruments & Supplies median
Debt to equity 0.22 1.53 0.08
Current ratio 2.09 1.95 2.49
Net debt to EBITDA 1.23 5.19 0.83

Dividend

Metric ALC BAX Medical Instruments & Supplies median
Dividend yield 0.36% 2.60% 0.99%
Payout ratio 0.32 0.57 0.00

Size

Metric ALC BAX Medical Instruments & Supplies median
Market cap 30.92b 12.15b 938.39m

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