Align Technology, Inc. (ALGN) vs Solventum Corporation (SOLV)

Align Technology, Inc. and Solventum Corporation are both Medical Instruments & Supplies companies. Solventum Corporation is the larger, with a market value of $14.8B against $11.3B — 1.3× the size. Align Technology, Inc. trades at the lower P/E: 23.1× against 97.3×. Align Technology, Inc. grew revenue faster over the last twelve months: 4.42% against −2.84%. Align Technology, Inc. has the higher net margin (11.8% vs 1.91%) and the higher return on invested capital (12.3% vs 0.00%). Across the 19 metrics below, Align Technology, Inc. leads on 14 and Solventum Corporation on 5.

Valuation

Metric ALGN SOLV Medical Instruments & Supplies median
P/E 23.08 97.26 30.28
P/S 2.71 1.81 2.49
P/B 2.66 3.08 2.34
Price to free cash flow 16.84 n/m 23.49
EV/EBITDA 12.64 7.60 14.87
EV/Sales 2.44 2.40 2.75
Earnings yield 4.33% 1.03% 0.00%
Free cash flow yield 5.94% 0.00% 0.59%

Profitability

Metric ALGN SOLV Medical Instruments & Supplies median
Gross margin 69.14% 0.00% 53.60%
Operating margin 14.92% 0.00% 1.97%
Net margin 11.83% 1.91% 0.00%
Free cash flow margin 18.03% 0.00% 2.36%
Return on equity 0.00% 3.19% 0.00%
Return on assets 7.71% 1.11% 0.00%
Return on invested capital 12.27% 0.00% 0.13%

Growth

Metric ALGN SOLV Medical Instruments & Supplies median
Revenue growth (TTM) 4.42% (2.84%) 8.97%
EPS growth (last fiscal year) 0.53% 221.74% 6.51%
Revenue growth, 5-year CAGR 10.30% — 8.85%
Net income growth, 5-year CAGR (25.40%) — 0.00%

Health

Metric ALGN SOLV Medical Instruments & Supplies median
Debt to equity 0.00 0.11 0.10
Current ratio 1.42 1.03 2.47
Net debt to EBITDA (1.40) 1.56 0.97

Dividend

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

Size

Metric ALGN SOLV Medical Instruments & Supplies median
Market cap 11.32b 14.84b 1.71b

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