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 $15.0B against $10.9B — 1.4× the size. Avantor, Inc. has negative trailing earnings, so its P/E is not meaningful; Solventum Corporation trades at 10.4×. 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 10.44 33.75
P/S 1.69 1.78 2.52
P/B 1.97 3.09 2.48
Price to free cash flow 24.42 n/m 25.19
EV/EBITDA 116.14 7.63 14.62
EV/Sales 2.21 2.37 2.88
Earnings yield (5.12%) 9.58% (2.67%)
Free cash flow yield 4.10% (0.80%) 0.09%

Profitability

Metric AVTR SOLV Medical Instruments & Supplies median
Gross margin 31.83% 54.68% 54.29%
Operating margin (4.59%) 24.98% 1.07%
Net margin (8.81%) 17.26% (1.61%)
Free cash flow margin 6.93% (1.42%) 1.08%
Return on equity (9.70%) 33.96% (1.32%)
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%) 8.85%
EPS growth (last fiscal year) (175.00%) 221.74% 8.65%
Revenue growth, 5-year CAGR 0.49% — 9.17%
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 0.10
Current ratio 1.78 1.02 2.48
Net debt to EBITDA 20.76 1.56 0.89

Dividend

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

Size

Metric AVTR SOLV Medical Instruments & Supplies median
Market cap 10.88b 14.96b 619.84m

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