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 $32.1B against $15.0B — 2.1× the size. Solventum Corporation trades at the lower P/E: 10.4× against 50.5×. 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 50.52 10.44 33.75
P/S 2.97 1.78 2.52
P/B 1.49 3.09 2.48
Price to free cash flow 20.21 n/m 25.19
EV/EBITDA 12.97 7.63 14.62
EV/Sales 3.27 2.37 2.88
Earnings yield 1.98% 9.58% (2.67%)
Free cash flow yield 4.95% (0.80%) 0.09%

Profitability

Metric ALC SOLV Medical Instruments & Supplies median
Gross margin 56.85% 54.68% 54.29%
Operating margin 8.73% 24.98% 1.07%
Net margin 5.92% 17.26% (1.61%)
Free cash flow margin 14.68% (1.42%) 1.08%
Return on equity 2.94% 33.96% (1.32%)
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%) 8.85%
EPS growth (last fiscal year) (3.41%) 221.74% 8.65%
Revenue growth, 5-year CAGR 8.77% — 9.17%
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 0.10
Current ratio 2.09 1.02 2.48
Net debt to EBITDA 1.23 1.56 0.89

Dividend

Metric ALC SOLV Medical Instruments & Supplies median
Dividend yield 0.53% — 1.11%
Payout ratio 0.27 — 0.27

Size

Metric ALC SOLV Medical Instruments & Supplies median
Market cap 32.10b 14.96b 619.84m

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