WallStSmart

Baxter International Inc (BAX)vsResMed Inc (RMD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Baxter International Inc generates 108% more annual revenue ($11.24B vs $5.40B). RMD leads profitability with a 27.5% profit margin vs -8.5%. RMD appears more attractively valued with a PEG of 1.39. RMD earns a higher WallStSmart Score of 70/100 (B).

BAX

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 3.5Value: 4.0Quality: 7.5
Piotroski: 4/9Altman Z: 1.98

RMD

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 9.5Value: 8.7Quality: 8.3
Piotroski: 6/9Altman Z: 4.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BAX.

RMDUndervalued (+14.4%)

Margin of Safety

+14.4%

Fair Value

$303.30

Current Price

$226.31

$76.99 discount

UndervaluedFair: $303.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BAX1 strengths · Avg: 10.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

RMD4 strengths · Avg: 9.5/10
Operating MarginProfitability
35.2%10/10

Strong operational efficiency at 35.2%

Altman Z-ScoreHealth
4.3410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
25.7%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
27.5%9/10

Keeps 28 of every $100 in revenue as profit

Areas to Watch

BAX4 concerns · Avg: 3.3/10
EPS GrowthGrowth
2.4%4/10

2.4% earnings growth

Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Debt/EquityHealth
1.603/10

Elevated debt levels

PEG RatioValuation
36.682/10

Expensive relative to growth rate

RMD0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : BAX

The strongest argument for BAX centers on Price/Book.

Bull Case : RMD

The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.5% and operating margin at 35.2%. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : BAX

The primary concerns for BAX are EPS Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 1.60 is elevated, increasing financial risk.

Bear Case : RMD

No major red flags identified for RMD, but monitor valuation.

Key Dynamics to Monitor

BAX profiles as a turnaround stock while RMD is a mature play — different risk/reward profiles.

RMD carries more volatility with a beta of 0.89 — expect wider price swings.

RMD is growing revenue faster at 11.0% — sustainability is the question.

BAX generates stronger free cash flow (444M), providing more financial flexibility.

Bottom Line

RMD scores higher overall (70/100 vs 53/100), backed by strong 27.5% margins and 11.0% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Baxter International Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Baxter International Inc. is an American multinational health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions.

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ResMed Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.

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