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 $15.1B against $10.4B — 1.5× the size. Solventum Corporation trades at the lower P/E: 10.9× against 25.5×. Align Technology, Inc. grew revenue faster over the last twelve months: 4.41% against −0.93%. Solventum Corporation has the higher net margin (17.3% vs 9.99%) and the higher return on invested capital (13.4% vs 10.9%). Across the 19 metrics below, Solventum Corporation leads on 10 and Align Technology, Inc. on 9.

Valuation

Metric ALGN SOLV Medical Instruments & Supplies median
P/E 25.48 10.89 34.17
P/S 2.54 1.86 2.83
P/B 2.48 3.22 2.82
Price to free cash flow 15.53 n/m 25.69
EV/EBITDA 11.71 7.88 16.08
EV/Sales 2.27 2.45 3.06
Earnings yield 3.92% 9.18% (1.84%)
Free cash flow yield 6.44% (0.76%) 0.17%

Profitability

Metric ALGN SOLV Medical Instruments & Supplies median
Gross margin 68.05% 54.68% 54.62%
Operating margin 13.23% 24.98% 1.64%
Net margin 9.99% 17.26% 0.00%
Free cash flow margin 16.32% (1.42%) 1.61%
Return on equity 10.16% 33.96% 0.00%
Return on assets 6.55% 9.78% 0.00%
Return on invested capital 10.93% 13.40% 0.00%

Growth

Metric ALGN SOLV Medical Instruments & Supplies median
Revenue growth (TTM) 4.41% (0.93%) 9.20%
EPS growth (last fiscal year) 0.53% 221.74% —
Revenue growth, 5-year CAGR 10.30% — 9.48%
Net income growth, 5-year CAGR (25.40%) — 0.00%

Health

Metric ALGN SOLV Medical Instruments & Supplies median
Debt to equity 0.00 1.10 0.08
Current ratio 1.40 1.02 2.49
Net debt to EBITDA (1.40) 1.56 0.83

Dividend

Metric ALGN SOLV Medical Instruments & Supplies median
Dividend yield — — 0.99%
Payout ratio 0.00 — 0.00

Size

Metric ALGN SOLV Medical Instruments & Supplies median
Market cap 10.35b 15.08b 938.39m

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