Alcon (ALC) vs Solventum Corporation (SOLV)

Alcon and Solventum Corporation are both Medical Instruments & Supplies companies. Alcon is the larger, with a market value of $36.9B against $14.8B — 2.5× the size. Alcon trades at the lower P/E: 58.4× against 97.3×. Alcon grew revenue faster over the last twelve months: 8.34% against −2.84%. Alcon has the higher net margin (5.92% vs 1.91%) and the higher return on invested capital (2.38% vs 0.00%). Across the 19 metrics below, Alcon leads on 13 and Solventum Corporation on 6.

Valuation

Metric ALC SOLV Medical Instruments & Supplies median
P/E 58.36 97.26 30.28
P/S 3.43 1.81 2.49
P/B 1.72 3.08 2.34
Price to free cash flow 23.34 n/m 23.49
EV/EBITDA 14.80 7.60 14.87
EV/Sales 3.73 2.40 2.75
Earnings yield 1.71% 1.03% 0.00%
Free cash flow yield 4.28% 0.00% 0.59%

Profitability

Metric ALC SOLV Medical Instruments & Supplies median
Gross margin 56.85% 0.00% 53.60%
Operating margin 8.73% 0.00% 1.97%
Net margin 5.92% 1.91% 0.00%
Free cash flow margin 14.68% 0.00% 2.36%
Return on equity 2.94% 3.19% 0.00%
Return on assets 2.06% 1.11% 0.00%
Return on invested capital 2.38% 0.00% 0.13%

Growth

Metric ALC SOLV Medical Instruments & Supplies median
Revenue growth (TTM) 8.34% (2.84%) 8.97%
EPS growth (last fiscal year) (3.41%) 221.74% 6.51%
Revenue growth, 5-year CAGR 8.77% — 8.85%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric ALC SOLV Medical Instruments & Supplies median
Debt to equity 0.22 0.11 0.10
Current ratio 2.09 1.03 2.47
Net debt to EBITDA 1.23 1.56 0.97

Dividend

Metric ALC SOLV Medical Instruments & Supplies median
Dividend yield 0.46% — 1.02%
Payout ratio 0.27 — 0.27

Size

Metric ALC SOLV Medical Instruments & Supplies median
Market cap 36.90b 14.84b 1.71b

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