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 $30.9B against $15.1B — 2.1× the size. Solventum Corporation trades at the lower P/E: 10.9× against 49.2×. Alcon grew revenue faster over the last twelve months: 8.34% against −0.93%. Solventum Corporation has the higher net margin (17.3% vs 5.92%) and the higher return on invested capital (13.4% vs 2.38%). Across the 19 metrics below, Solventum Corporation leads on 11 and Alcon on 8.

Valuation

Metric ALC SOLV Medical Instruments & Supplies median
P/E 49.21 10.89 34.17
P/S 2.89 1.86 2.83
P/B 1.45 3.22 2.82
Price to free cash flow 19.68 n/m 25.69
EV/EBITDA 12.67 7.88 16.08
EV/Sales 3.19 2.45 3.06
Earnings yield 2.03% 9.18% (1.84%)
Free cash flow yield 5.08% (0.76%) 0.17%

Profitability

Metric ALC SOLV Medical Instruments & Supplies median
Gross margin 56.85% 54.68% 54.62%
Operating margin 8.73% 24.98% 1.64%
Net margin 5.92% 17.26% 0.00%
Free cash flow margin 14.68% (1.42%) 1.61%
Return on equity 2.94% 33.96% 0.00%
Return on assets 2.06% 9.78% 0.00%
Return on invested capital 2.38% 13.40% 0.00%

Growth

Metric ALC SOLV Medical Instruments & Supplies median
Revenue growth (TTM) 8.34% (0.93%) 9.20%
EPS growth (last fiscal year) (3.41%) 221.74% —
Revenue growth, 5-year CAGR 8.77% — 9.48%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric ALC SOLV Medical Instruments & Supplies median
Debt to equity 0.22 1.10 0.08
Current ratio 2.09 1.02 2.49
Net debt to EBITDA 1.23 1.56 0.83

Dividend

Metric ALC SOLV Medical Instruments & Supplies median
Dividend yield 0.36% — 0.99%
Payout ratio 0.32 — 0.00

Size

Metric ALC SOLV Medical Instruments & Supplies median
Market cap 30.92b 15.08b 938.39m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack