Baxter International Inc. (BAX) vs Medline Inc. (MDLN)

Baxter International Inc. and Medline Inc. are both Medical Instruments & Supplies companies. Medline Inc. is the larger, with a market value of $52.3B against $13.3B — 3.9× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Medline Inc. trades at 58.4×. Medline Inc. has the higher net margin (1.84% vs −6.23%) and the higher return on invested capital (17.8% vs −1.05%). Across the 17 metrics below, Medline Inc. leads on 16 and Baxter International Inc. on 1.

Valuation

Metric BAX MDLN Medical Instruments & Supplies median
P/E n/m 58.36 30.28
P/S 1.14 1.14 2.49
P/B 2.04 1.81 2.34
Price to free cash flow 11.63 11.29 23.49
EV/EBITDA 13.15 4.47 14.87
EV/Sales 1.71 1.46 2.75
Earnings yield (5.52%) 1.71% 0.00%
Free cash flow yield 8.60% 8.85% 0.59%

Profitability

Metric BAX MDLN Medical Instruments & Supplies median
Gross margin 30.09% 44.88% 53.60%
Operating margin (1.90%) 29.67% 1.97%
Net margin (6.23%) 1.84% 0.00%
Free cash flow margin 9.79% 10.11% 2.36%
Return on equity (10.56%) 3.18% 0.00%
Return on assets (3.57%) 1.49% 0.00%
Return on invested capital (1.05%) 17.80% 0.13%

Growth

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

Health

Metric BAX MDLN Medical Instruments & Supplies median
Debt to equity 1.33 0.65 0.10
Current ratio 1.79 4.04 2.47
Net debt to EBITDA 5.19 3.24 0.97

Dividend

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

Size

Metric BAX MDLN Medical Instruments & Supplies median
Market cap 13.27b 52.26b 1.71b

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