Align Technology, Inc. (ALGN) vs Baxter International Inc. (BAX)

Align Technology, Inc. and Baxter International Inc. are both Medical Instruments & Supplies companies. Baxter International Inc. is the larger, with a market value of $12.2B against $10.4B — 1.2× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Align Technology, Inc. trades at 25.5×. Baxter International Inc. grew revenue faster over the last twelve months: 5.36% against 4.41%. Align Technology, Inc. has the higher net margin (9.99% vs −9.27%) and the higher return on invested capital (10.9% vs −1.27%). Across the 21 metrics below, Align Technology, Inc. leads on 13 and Baxter International Inc. on 8.

Valuation

Metric ALGN BAX Medical Instruments & Supplies median
P/E 25.48 n/m 34.17
P/S 2.54 1.05 2.83
P/B 2.48 1.96 2.82
Price to free cash flow 15.53 14.82 25.69
EV/EBITDA 11.71 13.34 16.08
EV/Sales 2.27 1.69 3.06
Earnings yield 3.92% (8.86%) (1.84%)
Free cash flow yield 6.44% 6.75% 0.17%

Profitability

Metric ALGN BAX Medical Instruments & Supplies median
Gross margin 68.05% 30.08% 54.62%
Operating margin 13.23% (2.39%) 1.64%
Net margin 9.99% (9.27%) 0.00%
Free cash flow margin 16.32% 7.11% 1.61%
Return on equity 10.16% (15.78%) 0.00%
Return on assets 6.55% (5.21%) 0.00%
Return on invested capital 10.93% (1.27%) 0.00%

Growth

Metric ALGN BAX Medical Instruments & Supplies median
Revenue growth (TTM) 4.41% 5.36% 9.20%
EPS growth (last fiscal year) 0.53% (47.24%) —
Revenue growth, 5-year CAGR 10.30% (0.75%) 9.48%
Net income growth, 5-year CAGR (25.40%) 0.00% 0.00%

Health

Metric ALGN BAX Medical Instruments & Supplies median
Debt to equity 0.00 1.53 0.08
Current ratio 1.40 1.95 2.49
Net debt to EBITDA (1.40) 5.19 0.83

Dividend

Metric ALGN BAX Medical Instruments & Supplies median
Dividend yield — 2.60% 0.99%
Payout ratio 0.00 0.57 0.00

Size

Metric ALGN BAX Medical Instruments & Supplies median
Market cap 10.35b 12.15b 938.39m

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