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 $52.8B against $13.3B — 4.0× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Becton, Dickinson and Company trades at 57.8×. Becton, Dickinson and Company grew revenue faster over the last twelve months: 13.1% against 5.36%. Becton, Dickinson and Company has the higher net margin (4.20% vs −9.27%) and the higher return on invested capital (3.89% vs −1.27%). Both pay a dividend; Becton, Dickinson and Company yields more (2.07% vs 0.16%). Across the 22 metrics below, Becton, Dickinson and Company leads on 16 and Baxter International Inc. on 6.

Valuation

Metric BAX BDX Medical Instruments & Supplies median
P/E n/m 57.76 33.75
P/S 1.14 2.35 2.52
P/B 2.12 2.16 2.48
Price to free cash flow 16.07 16.45 25.19
EV/EBITDA 14.03 13.72 14.62
EV/Sales 1.78 2.91 2.88
Earnings yield (8.17%) 1.73% (2.67%)
Free cash flow yield 6.22% 6.08% 0.09%

Profitability

Metric BAX BDX Medical Instruments & Supplies median
Gross margin 30.08% 46.73% 54.29%
Operating margin (2.39%) 10.30% 1.07%
Net margin (9.27%) 4.20% (1.61%)
Free cash flow margin 7.11% 14.29% 1.08%
Return on equity (15.78%) 3.77% (1.32%)
Return on assets (5.21%) 1.78% 0.00%
Return on invested capital (1.27%) 3.89% 0.00%

Growth

Metric BAX BDX Medical Instruments & Supplies median
Revenue growth (TTM) 5.36% 13.14% 8.85%
EPS growth (last fiscal year) (47.24%) (1.85%) 8.65%
Revenue growth, 5-year CAGR (0.75%) 6.32% 9.17%
Net income growth, 5-year CAGR 0.00% 16.95% 0.00%

Health

Metric BAX BDX Medical Instruments & Supplies median
Debt to equity 1.53 0.55 0.10
Current ratio 1.95 0.87 2.48
Net debt to EBITDA 5.19 3.33 0.89

Dividend

Metric BAX BDX Medical Instruments & Supplies median
Dividend yield 0.16% 2.07% 1.11%
Payout ratio — 1.20 0.27

Size

Metric BAX BDX Medical Instruments & Supplies median
Market cap 13.32b 52.78b 619.84m

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