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 $15.0B against $10.6B — 1.4× the size. Solventum Corporation trades at the lower P/E: 10.4× against 25.6×. 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 25.57 10.44 33.75
P/S 2.54 1.78 2.52
P/B 2.49 3.09 2.48
Price to free cash flow 15.59 n/m 25.19
EV/EBITDA 11.76 7.63 14.62
EV/Sales 2.28 2.37 2.88
Earnings yield 3.91% 9.58% (2.67%)
Free cash flow yield 6.41% (0.80%) 0.09%

Profitability

Metric ALGN SOLV Medical Instruments & Supplies median
Gross margin 68.05% 54.68% 54.29%
Operating margin 13.23% 24.98% 1.07%
Net margin 9.99% 17.26% (1.61%)
Free cash flow margin 16.32% (1.42%) 1.08%
Return on equity 10.16% 33.96% (1.32%)
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%) 8.85%
EPS growth (last fiscal year) 0.53% 221.74% 8.65%
Revenue growth, 5-year CAGR 10.30% — 9.17%
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 0.10
Current ratio 1.40 1.02 2.48
Net debt to EBITDA (1.40) 1.56 0.89

Dividend

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

Size

Metric ALGN SOLV Medical Instruments & Supplies median
Market cap 10.61b 14.96b 619.84m

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