Avantor, Inc. (AVTR) vs Solventum Corporation (SOLV)

Avantor, 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 — 1.4× the size. Avantor, Inc. has negative trailing earnings, so its P/E is not meaningful; Solventum Corporation trades at 10.9×. Solventum Corporation grew revenue faster over the last twelve months: −0.93% against −1.57%. Solventum Corporation has the higher net margin (17.3% vs −8.81%) and the higher return on invested capital (13.4% vs −2.09%). Across the 18 metrics below, Solventum Corporation leads on 11 and Avantor, Inc. on 7.

Valuation

Metric AVTR SOLV Medical Instruments & Supplies median
P/E n/m 10.89 34.17
P/S 1.57 1.86 2.83
P/B 1.83 3.22 2.82
Price to free cash flow 22.68 n/m 25.69
EV/EBITDA 109.80 7.88 16.08
EV/Sales 2.09 2.45 3.06
Earnings yield (5.51%) 9.18% (1.84%)
Free cash flow yield 4.41% (0.76%) 0.17%

Profitability

Metric AVTR SOLV Medical Instruments & Supplies median
Gross margin 31.83% 54.68% 54.62%
Operating margin (4.59%) 24.98% 1.64%
Net margin (8.81%) 17.26% 0.00%
Free cash flow margin 6.93% (1.42%) 1.61%
Return on equity (9.70%) 33.96% 0.00%
Return on assets (4.74%) 9.78% 0.00%
Return on invested capital (2.09%) 13.40% 0.00%

Growth

Metric AVTR SOLV Medical Instruments & Supplies median
Revenue growth (TTM) (1.57%) (0.93%) 9.20%
EPS growth (last fiscal year) (175.00%) 221.74% —
Revenue growth, 5-year CAGR 0.49% — 9.48%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric AVTR SOLV Medical Instruments & Supplies median
Debt to equity 0.66 1.10 0.08
Current ratio 1.78 1.02 2.49
Net debt to EBITDA 20.76 1.56 0.83

Dividend

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

Size

Metric AVTR SOLV Medical Instruments & Supplies median
Market cap 10.40b 15.08b 938.39m

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