Baxter International Inc. (BAX) vs Becton, Dickinson and Company (BDX)

Baxter International Inc. and Becton, Dickinson and Company are both Medical Instruments & Supplies companies. Becton, Dickinson and Company is the larger, with a market value of $58.2B against $13.3B — 4.4× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Becton, Dickinson and Company trades at 64.1×. Baxter International Inc. grew revenue faster over the last twelve months: 5.33% against −2.55%. Becton, Dickinson and Company has the higher net margin (4.52% vs −6.23%) and the higher return on invested capital (3.89% vs −1.05%). Both pay a dividend; Becton, Dickinson and Company yields more (1.87% vs 0.16%). Across the 22 metrics below, Becton, Dickinson and Company leads on 14 and Baxter International Inc. on 8.

Valuation

Metric BAX BDX Medical Instruments & Supplies median
P/E n/m 64.14 30.28
P/S 1.14 2.81 2.49
P/B 2.04 2.40 2.34
Price to free cash flow 11.63 18.27 23.49
EV/EBITDA 13.15 14.95 14.87
EV/Sales 1.71 3.41 2.75
Earnings yield (5.52%) 1.56% 0.00%
Free cash flow yield 8.60% 5.47% 0.59%

Profitability

Metric BAX BDX Medical Instruments & Supplies median
Gross margin 30.09% 50.26% 53.60%
Operating margin (1.90%) 11.07% 1.97%
Net margin (6.23%) 4.52% 0.00%
Free cash flow margin 9.79% 15.37% 2.36%
Return on equity (10.56%) 3.77% 0.00%
Return on assets (3.57%) 1.78% 0.00%
Return on invested capital (1.05%) 3.89% 0.13%

Growth

Metric BAX BDX Medical Instruments & Supplies median
Revenue growth (TTM) 5.33% (2.55%) 8.97%
EPS growth (last fiscal year) (47.24%) (1.85%) 6.51%
Revenue growth, 5-year CAGR (0.75%) 6.32% 8.85%
Net income growth, 5-year CAGR 0.00% 16.95% 0.00%

Health

Metric BAX BDX Medical Instruments & Supplies median
Debt to equity 1.33 0.55 0.10
Current ratio 1.79 0.87 2.47
Net debt to EBITDA 5.19 3.33 0.97

Dividend

Metric BAX BDX Medical Instruments & Supplies median
Dividend yield 0.16% 1.87% 1.02%
Payout ratio — 1.20 0.27

Size

Metric BAX BDX Medical Instruments & Supplies median
Market cap 13.27b 58.17b 1.71b

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