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 $14.8B against $10.3B — 1.4× the size. Avantor, Inc. trades at the lower P/E: 30.3× against 97.3×. Avantor, Inc. grew revenue faster over the last twelve months: 0.92% against −2.84%. Avantor, Inc. has the higher net margin (5.08% vs 1.91%) and the higher return on invested capital (3.36% vs 0.00%). Across the 19 metrics below, Avantor, Inc. leads on 15 and Solventum Corporation on 4.

Valuation

Metric AVTR SOLV Medical Instruments & Supplies median
P/E 30.28 97.26 30.28
P/S 1.54 1.81 2.49
P/B 1.76 3.08 2.34
Price to free cash flow 23.34 n/m 23.49
EV/EBITDA 14.74 7.60 14.87
EV/Sales 2.03 2.40 2.75
Earnings yield 3.30% 1.03% 0.00%
Free cash flow yield 4.28% 0.00% 0.59%

Profitability

Metric AVTR SOLV Medical Instruments & Supplies median
Gross margin 31.59% 0.00% 53.60%
Operating margin 7.34% 0.00% 1.97%
Net margin 5.08% 1.91% 0.00%
Free cash flow margin 6.62% 0.00% 2.36%
Return on equity 5.91% 3.19% 0.00%
Return on assets 2.89% 1.11% 0.00%
Return on invested capital 3.36% 0.00% 0.13%

Growth

Metric AVTR SOLV Medical Instruments & Supplies median
Revenue growth (TTM) 0.92% (2.84%) 8.97%
EPS growth (last fiscal year) (175.00%) 221.74% 6.51%
Revenue growth, 5-year CAGR 0.49% — 8.85%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric AVTR SOLV Medical Instruments & Supplies median
Debt to equity 0.63 0.11 0.10
Current ratio 1.89 1.03 2.47
Net debt to EBITDA 20.76 1.56 0.97

Dividend

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

Size

Metric AVTR SOLV Medical Instruments & Supplies median
Market cap 10.26b 14.84b 1.71b

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