Baxter International Inc. (BAX) vs Intuitive Surgical, Inc. (ISRG)

Baxter International Inc. and Intuitive Surgical, Inc. are both Medical Instruments & Supplies companies. Intuitive Surgical, Inc. is the larger, with a market value of $162.4B against $13.3B — 12.2× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Intuitive Surgical, Inc. trades at 55.7×. Intuitive Surgical, Inc. grew revenue faster over the last twelve months: 20.5% against 5.33%. Intuitive Surgical, Inc. has the higher net margin (25.5% vs −6.23%) and the higher return on invested capital (17.0% vs −1.05%). Across the 21 metrics below, Intuitive Surgical, Inc. leads on 15 and Baxter International Inc. on 6.

Valuation

Metric BAX ISRG Medical Instruments & Supplies median
P/E n/m 55.70 30.28
P/S 1.14 14.04 2.49
P/B 2.04 10.08 2.34
Price to free cash flow 11.63 44.60 23.49
EV/EBITDA 13.15 38.32 14.87
EV/Sales 1.71 13.69 2.75
Earnings yield (5.52%) 1.80% 0.00%
Free cash flow yield 8.60% 2.24% 0.59%

Profitability

Metric BAX ISRG Medical Instruments & Supplies median
Gross margin 30.09% 67.19% 53.60%
Operating margin (1.90%) 28.37% 1.97%
Net margin (6.23%) 25.54% 0.00%
Free cash flow margin 9.79% 31.47% 2.36%
Return on equity (10.56%) 17.84% 0.00%
Return on assets (3.57%) 15.28% 0.00%
Return on invested capital (1.05%) 17.00% 0.13%

Growth

Metric BAX ISRG Medical Instruments & Supplies median
Revenue growth (TTM) 5.33% 20.45% 8.97%
EPS growth (last fiscal year) (47.24%) 22.59% 6.51%
Revenue growth, 5-year CAGR (0.75%) 18.22% 8.85%
Net income growth, 5-year CAGR 0.00% 21.91% 0.00%

Health

Metric BAX ISRG Medical Instruments & Supplies median
Debt to equity 1.33 0.00 0.10
Current ratio 1.79 3.33 2.47
Net debt to EBITDA 5.19 (1.64) 0.97

Dividend

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

Size

Metric BAX ISRG Medical Instruments & Supplies median
Market cap 13.27b 162.41b 1.71b

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