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 $151.2B against $13.3B — 11.3× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Intuitive Surgical, Inc. trades at 48.3×. 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 48.27 33.75
P/S 1.14 13.69 2.52
P/B 2.12 8.26 2.48
Price to free cash flow 16.07 46.23 25.19
EV/EBITDA 14.03 34.29 14.62
EV/Sales 1.78 13.22 2.88
Earnings yield (8.17%) 2.07% (2.67%)
Free cash flow yield 6.22% 2.16% 0.09%

Profitability

Metric BAX ISRG Medical Instruments & Supplies median
Gross margin 30.08% 66.68% 54.29%
Operating margin (2.39%) 31.28% 1.07%
Net margin (9.27%) 28.45% (1.61%)
Free cash flow margin 7.11% 29.62% 1.08%
Return on equity (15.78%) 17.32% (1.32%)
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% 8.85%
EPS growth (last fiscal year) (47.24%) 22.59% 8.65%
Revenue growth, 5-year CAGR (0.75%) 18.22% 9.17%
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 0.10
Current ratio 1.95 4.96 2.48
Net debt to EBITDA 5.19 (1.64) 0.89

Dividend

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

Size

Metric BAX ISRG Medical Instruments & Supplies median
Market cap 13.32b 151.15b 619.84m

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