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 $48.8B against $12.2B — 4.0× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Becton, Dickinson and Company trades at 55.4×. 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; Baxter International Inc. yields more (2.60% vs 1.56%). Across the 22 metrics below, Becton, Dickinson and Company leads on 15 and Baxter International Inc. on 7.

Valuation

Metric BAX BDX Medical Instruments & Supplies median
P/E n/m 55.37 34.17
P/S 1.05 2.25 2.83
P/B 1.96 2.07 2.82
Price to free cash flow 14.82 15.77 25.69
EV/EBITDA 13.34 13.27 16.08
EV/Sales 1.69 2.82 3.06
Earnings yield (8.86%) 1.81% (1.84%)
Free cash flow yield 6.75% 6.34% 0.17%

Profitability

Metric BAX BDX Medical Instruments & Supplies median
Gross margin 30.08% 46.73% 54.62%
Operating margin (2.39%) 10.30% 1.64%
Net margin (9.27%) 4.20% 0.00%
Free cash flow margin 7.11% 14.29% 1.61%
Return on equity (15.78%) 3.77% 0.00%
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% 9.20%
EPS growth (last fiscal year) (47.24%) (1.85%) —
Revenue growth, 5-year CAGR (0.75%) 6.32% 9.48%
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 0.08
Current ratio 1.95 0.87 2.49
Net debt to EBITDA 5.19 3.33 0.83

Dividend

Metric BAX BDX Medical Instruments & Supplies median
Dividend yield 2.60% 1.56% 0.99%
Payout ratio 0.57 0.65 0.00

Size

Metric BAX BDX Medical Instruments & Supplies median
Market cap 12.15b 48.82b 938.39m

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