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An Investor's Choice: J&J or Baxter International?

Its product mix is not as diversified as JNJ. BAX develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. That alone is a wide target market needed by every virtually every nation on the planet.

As a global, diversified healthcare company, Baxter applies its unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care. The Deerfield, Ill.-based company, with a market cap of around $37.6 billion, has been around since 1931, an inauspicious year to go into business.

As its press release explained, "Baxter reported net income of $552 million and earnings per diluted share of $1.00, compared to net income of $588 million and earnings per diluted share of $1.04 in the same period last year." When excluding one-time expenses the company earned $1.05 per share in the latest quarter.

First-quarter 2013 results included after-tax special items totaling $29 million (or 5 cents per diluted share) primarily for the costs associated with Baxter's planned acquisition of Gambro AB, a global medical technology company focused on developing, manufacturing and supplying dialysis products and therapies for patients with acute or chronic kidney disease.


Baxter agreed to buy Gambro back in December for $2.76 billion, and it cost around $29 million to transact the deal during the first quarter. Gambro has annual sales of around $1.6 billion and BAX hopes to seal the deal by the end of the second quarter of 2013.

BAX's revenue in the first quarter increased 2% to $3.45 billion from $3.39 billion in the year-ago quarter. This figure is not reflected in the chart below that looks at BAX from a one-year perspective with the same metrics applied to JNJ at the beginning of this article. BAX Chart BAX data by YCharts

Although first-quarter results aren't shown in the chart above, after the exclusion of the one-time items the EPS was 4% higher than the year ago quarter and as mentioned above the first-quarter revenue per share (trailing 12-month) did increase 2%. Shares of BAX closed down 1.89% on Thursday at $68.90.

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