Baxter International Inc. (BAX) vs West Pharmaceutical Services, Inc. (WST)

Baxter International Inc. and West Pharmaceutical Services, Inc. are both Medical Instruments & Supplies companies. West Pharmaceutical Services, Inc. is the larger, with a market value of $26.3B against $12.2B — 2.2× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; West Pharmaceutical Services, Inc. trades at 47.1×. West Pharmaceutical Services, Inc. grew revenue faster over the last twelve months: 12.4% against 5.36%. West Pharmaceutical Services, Inc. has the higher net margin (17.0% vs −9.27%) and the higher return on invested capital (15.4% vs −1.27%). Both pay a dividend; Baxter International Inc. yields more (2.60% vs 0.14%). Across the 22 metrics below, West Pharmaceutical Services, Inc. leads on 15 and Baxter International Inc. on 7.

Valuation

Metric BAX WST Medical Instruments & Supplies median
P/E n/m 47.07 34.17
P/S 1.05 7.88 2.83
P/B 1.96 8.77 2.82
Price to free cash flow 14.82 60.56 25.69
EV/EBITDA 13.34 30.16 16.08
EV/Sales 1.69 7.81 3.06
Earnings yield (8.86%) 2.12% (1.84%)
Free cash flow yield 6.75% 1.65% 0.17%

Profitability

Metric BAX WST Medical Instruments & Supplies median
Gross margin 30.08% 36.79% 54.62%
Operating margin (2.39%) 20.45% 1.64%
Net margin (9.27%) 16.98% 0.00%
Free cash flow margin 7.11% 13.13% 1.61%
Return on equity (15.78%) 19.09% 0.00%
Return on assets (5.21%) 14.07% 0.00%
Return on invested capital (1.27%) 15.42% 0.00%

Growth

Metric BAX WST Medical Instruments & Supplies median
Revenue growth (TTM) 5.36% 12.38% 9.20%
EPS growth (last fiscal year) (47.24%) 1.49% —
Revenue growth, 5-year CAGR (0.75%) 7.44% 9.48%
Net income growth, 5-year CAGR 0.00% 7.36% 0.00%

Health

Metric BAX WST Medical Instruments & Supplies median
Debt to equity 1.53 0.07 0.08
Current ratio 1.95 2.82 2.49
Net debt to EBITDA 5.19 (0.78) 0.83

Dividend

Metric BAX WST Medical Instruments & Supplies median
Dividend yield 2.60% 0.14% 0.99%
Payout ratio 0.57 0.11 0.00

Size

Metric BAX WST Medical Instruments & Supplies median
Market cap 12.15b 26.29b 938.39m

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