Avantor, Inc. (AVTR) vs Baxter International Inc. (BAX)

Avantor, 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 $10.3B — 1.3× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Avantor, Inc. trades at 30.3×. Baxter International Inc. grew revenue faster over the last twelve months: 5.33% against 0.92%. Avantor, Inc. has the higher net margin (5.08% vs −6.23%) and the higher return on invested capital (3.36% vs −1.05%). Across the 20 metrics below, Avantor, Inc. leads on 11 and Baxter International Inc. on 9.

Valuation

Metric AVTR BAX Medical Instruments & Supplies median
P/E 30.28 n/m 30.28
P/S 1.54 1.14 2.49
P/B 1.76 2.04 2.34
Price to free cash flow 23.34 11.63 23.49
EV/EBITDA 14.74 13.15 14.87
EV/Sales 2.03 1.71 2.75
Earnings yield 3.30% (5.52%) 0.00%
Free cash flow yield 4.28% 8.60% 0.59%

Profitability

Metric AVTR BAX Medical Instruments & Supplies median
Gross margin 31.59% 30.09% 53.60%
Operating margin 7.34% (1.90%) 1.97%
Net margin 5.08% (6.23%) 0.00%
Free cash flow margin 6.62% 9.79% 2.36%
Return on equity 5.91% (10.56%) 0.00%
Return on assets 2.89% (3.57%) 0.00%
Return on invested capital 3.36% (1.05%) 0.13%

Growth

Metric AVTR BAX Medical Instruments & Supplies median
Revenue growth (TTM) 0.92% 5.33% 8.97%
EPS growth (last fiscal year) (175.00%) (47.24%) 6.51%
Revenue growth, 5-year CAGR 0.49% (0.75%) 8.85%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AVTR BAX Medical Instruments & Supplies median
Debt to equity 0.63 1.33 0.10
Current ratio 1.89 1.79 2.47
Net debt to EBITDA 20.76 5.19 0.97

Dividend

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

Size

Metric AVTR BAX Medical Instruments & Supplies median
Market cap 10.26b 13.27b 1.71b

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