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 $140.7B against $12.2B — 11.6× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Intuitive Surgical, Inc. trades at 45.8×. Intuitive Surgical, Inc. grew revenue faster over the last twelve months: 20.7% against 5.36%. Intuitive Surgical, Inc. has the higher net margin (28.5% vs −9.27%) and the higher return on invested capital (16.5% vs −1.27%). 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 45.83 34.17
P/S 1.05 13.00 2.83
P/B 1.96 7.84 2.82
Price to free cash flow 14.82 43.89 25.69
EV/EBITDA 13.34 32.50 16.08
EV/Sales 1.69 12.53 3.06
Earnings yield (8.86%) 2.18% (1.84%)
Free cash flow yield 6.75% 2.28% 0.17%

Profitability

Metric BAX ISRG Medical Instruments & Supplies median
Gross margin 30.08% 66.68% 54.62%
Operating margin (2.39%) 31.28% 1.64%
Net margin (9.27%) 28.45% 0.00%
Free cash flow margin 7.11% 29.62% 1.61%
Return on equity (15.78%) 17.32% 0.00%
Return on assets (5.21%) 15.30% 0.00%
Return on invested capital (1.27%) 16.49% 0.00%

Growth

Metric BAX ISRG Medical Instruments & Supplies median
Revenue growth (TTM) 5.36% 20.66% 9.20%
EPS growth (last fiscal year) (47.24%) 22.59% —
Revenue growth, 5-year CAGR (0.75%) 18.22% 9.48%
Net income growth, 5-year CAGR 0.00% 21.91% 0.00%

Health

Metric BAX ISRG Medical Instruments & Supplies median
Debt to equity 1.53 0.00 0.08
Current ratio 1.95 4.96 2.49
Net debt to EBITDA 5.19 (1.64) 0.83

Dividend

Metric BAX ISRG Medical Instruments & Supplies median
Dividend yield 2.60% — 0.99%
Payout ratio 0.57 0.00 0.00

Size

Metric BAX ISRG Medical Instruments & Supplies median
Market cap 12.15b 140.68b 938.39m

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