Baxter International Inc. (BAX) vs ResMed Inc. (RMD)

Baxter International Inc. and ResMed Inc. are both Medical Instruments & Supplies companies. ResMed Inc. is the larger, with a market value of $31.9B against $12.2B — 2.6× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; ResMed Inc. trades at 21.3×. ResMed Inc. grew revenue faster over the last twelve months: 9.85% against 5.36%. ResMed Inc. has the higher net margin (26.9% vs −9.27%) and the higher return on invested capital (21.4% vs −1.27%). Both pay a dividend; Baxter International Inc. yields more (2.60% vs 1.06%). Across the 22 metrics below, ResMed Inc. leads on 15 and Baxter International Inc. on 7.

Valuation

Metric BAX RMD Medical Instruments & Supplies median
P/E n/m 21.25 34.17
P/S 1.05 5.72 2.83
P/B 1.96 4.91 2.82
Price to free cash flow 14.82 19.86 25.69
EV/EBITDA 13.34 14.68 16.08
EV/Sales 1.69 5.53 3.06
Earnings yield (8.86%) 4.71% (1.84%)
Free cash flow yield 6.75% 5.03% 0.17%

Profitability

Metric BAX RMD Medical Instruments & Supplies median
Gross margin 30.08% 61.06% 54.62%
Operating margin (2.39%) 33.37% 1.64%
Net margin (9.27%) 26.94% 0.00%
Free cash flow margin 7.11% 28.81% 1.61%
Return on equity (15.78%) 24.27% 0.00%
Return on assets (5.21%) 17.77% 0.00%
Return on invested capital (1.27%) 21.38% 0.00%

Growth

Metric BAX RMD Medical Instruments & Supplies median
Revenue growth (TTM) 5.36% 9.85% 9.20%
EPS growth (last fiscal year) (47.24%) 9.67% —
Revenue growth, 5-year CAGR (0.75%) 12.08% 9.48%
Net income growth, 5-year CAGR 0.00% 26.27% 0.00%

Health

Metric BAX RMD Medical Instruments & Supplies median
Debt to equity 1.53 0.06 0.08
Current ratio 1.95 3.10 2.49
Net debt to EBITDA 5.19 (0.50) 0.83

Dividend

Metric BAX RMD Medical Instruments & Supplies median
Dividend yield 2.60% 1.06% 0.99%
Payout ratio 0.57 0.29 0.00

Size

Metric BAX RMD Medical Instruments & Supplies median
Market cap 12.15b 31.91b 938.39m

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