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 $34.1B against $13.3B — 2.6× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; ResMed Inc. trades at 22.8×. 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; ResMed Inc. yields more (1.03% vs 0.16%). Across the 22 metrics below, ResMed Inc. leads on 16 and Baxter International Inc. on 6.

Valuation

Metric BAX RMD Medical Instruments & Supplies median
P/E n/m 22.85 33.75
P/S 1.14 6.15 2.52
P/B 2.12 5.28 2.48
Price to free cash flow 16.07 21.35 25.19
EV/EBITDA 14.03 15.82 14.62
EV/Sales 1.78 5.96 2.88
Earnings yield (8.17%) 4.38% (2.67%)
Free cash flow yield 6.22% 4.68% 0.09%

Profitability

Metric BAX RMD Medical Instruments & Supplies median
Gross margin 30.08% 61.06% 54.29%
Operating margin (2.39%) 33.37% 1.07%
Net margin (9.27%) 26.94% (1.61%)
Free cash flow margin 7.11% 28.81% 1.08%
Return on equity (15.78%) 24.27% (1.32%)
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% 8.85%
EPS growth (last fiscal year) (47.24%) 9.67% 8.65%
Revenue growth, 5-year CAGR (0.75%) 12.08% 9.17%
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 0.10
Current ratio 1.95 3.10 2.48
Net debt to EBITDA 5.19 (0.50) 0.89

Dividend

Metric BAX RMD Medical Instruments & Supplies median
Dividend yield 0.16% 1.03% 1.11%
Payout ratio — 0.24 0.27

Size

Metric BAX RMD Medical Instruments & Supplies median
Market cap 13.32b 34.07b 619.84m

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