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 $10.6B — 1.3× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Align Technology, Inc. trades at 25.6×. 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 15 and Baxter International Inc. on 6.

Valuation

Metric ALGN BAX Medical Instruments & Supplies median
P/E 25.57 n/m 33.75
P/S 2.54 1.14 2.52
P/B 2.49 2.12 2.48
Price to free cash flow 15.59 16.07 25.19
EV/EBITDA 11.76 14.03 14.62
EV/Sales 2.28 1.78 2.88
Earnings yield 3.91% (8.17%) (2.67%)
Free cash flow yield 6.41% 6.22% 0.09%

Profitability

Metric ALGN BAX Medical Instruments & Supplies median
Gross margin 68.05% 30.08% 54.29%
Operating margin 13.23% (2.39%) 1.07%
Net margin 9.99% (9.27%) (1.61%)
Free cash flow margin 16.32% 7.11% 1.08%
Return on equity 10.16% (15.78%) (1.32%)
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% 8.85%
EPS growth (last fiscal year) 0.53% (47.24%) 8.65%
Revenue growth, 5-year CAGR 10.30% (0.75%) 9.17%
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 0.10
Current ratio 1.40 1.95 2.48
Net debt to EBITDA (1.40) 5.19 0.89

Dividend

Metric ALGN BAX Medical Instruments & Supplies median
Dividend yield — 0.16% 1.11%
Payout ratio — — 0.27

Size

Metric ALGN BAX Medical Instruments & Supplies median
Market cap 10.61b 13.32b 619.84m

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