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 $13.3B against $11.3B — 1.2× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Align Technology, Inc. trades at 23.1×. Baxter International Inc. grew revenue faster over the last twelve months: 5.33% against 4.42%. Align Technology, Inc. has the higher net margin (11.8% vs −6.23%) and the higher return on invested capital (12.3% vs −1.05%). 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 23.08 n/m 30.28
P/S 2.71 1.14 2.49
P/B 2.66 2.04 2.34
Price to free cash flow 16.84 11.63 23.49
EV/EBITDA 12.64 13.15 14.87
EV/Sales 2.44 1.71 2.75
Earnings yield 4.33% (5.52%) 0.00%
Free cash flow yield 5.94% 8.60% 0.59%

Profitability

Metric ALGN BAX Medical Instruments & Supplies median
Gross margin 69.14% 30.09% 53.60%
Operating margin 14.92% (1.90%) 1.97%
Net margin 11.83% (6.23%) 0.00%
Free cash flow margin 18.03% 9.79% 2.36%
Return on equity 0.00% (10.56%) 0.00%
Return on assets 7.71% (3.57%) 0.00%
Return on invested capital 12.27% (1.05%) 0.13%

Growth

Metric ALGN BAX Medical Instruments & Supplies median
Revenue growth (TTM) 4.42% 5.33% 8.97%
EPS growth (last fiscal year) 0.53% (47.24%) 6.51%
Revenue growth, 5-year CAGR 10.30% (0.75%) 8.85%
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 1.33 0.10
Current ratio 1.42 1.79 2.47
Net debt to EBITDA (1.40) 5.19 0.97

Dividend

Metric ALGN BAX Medical Instruments & Supplies median
Dividend yield — 0.16% 1.02%
Payout ratio — — 0.27

Size

Metric ALGN BAX Medical Instruments & Supplies median
Market cap 11.32b 13.27b 1.71b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack