Baxter International Inc. (BAX) vs Solventum Corporation (SOLV)

Baxter International Inc. and Solventum Corporation are both Medical Instruments & Supplies companies. Solventum Corporation is the larger, with a market value of $15.1B against $12.2B — 1.2× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Solventum Corporation trades at 10.9×. Baxter International Inc. grew revenue faster over the last twelve months: 5.36% against −0.93%. Solventum Corporation has the higher net margin (17.3% vs −9.27%) and the higher return on invested capital (13.4% vs −1.27%). Across the 18 metrics below, Solventum Corporation leads on 11 and Baxter International Inc. on 7.

Valuation

Metric BAX SOLV Medical Instruments & Supplies median
P/E n/m 10.89 34.17
P/S 1.05 1.86 2.83
P/B 1.96 3.22 2.82
Price to free cash flow 14.82 n/m 25.69
EV/EBITDA 13.34 7.88 16.08
EV/Sales 1.69 2.45 3.06
Earnings yield (8.86%) 9.18% (1.84%)
Free cash flow yield 6.75% (0.76%) 0.17%

Profitability

Metric BAX SOLV Medical Instruments & Supplies median
Gross margin 30.08% 54.68% 54.62%
Operating margin (2.39%) 24.98% 1.64%
Net margin (9.27%) 17.26% 0.00%
Free cash flow margin 7.11% (1.42%) 1.61%
Return on equity (15.78%) 33.96% 0.00%
Return on assets (5.21%) 9.78% 0.00%
Return on invested capital (1.27%) 13.40% 0.00%

Growth

Metric BAX SOLV Medical Instruments & Supplies median
Revenue growth (TTM) 5.36% (0.93%) 9.20%
EPS growth (last fiscal year) (47.24%) 221.74% —
Revenue growth, 5-year CAGR (0.75%) — 9.48%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric BAX SOLV Medical Instruments & Supplies median
Debt to equity 1.53 1.10 0.08
Current ratio 1.95 1.02 2.49
Net debt to EBITDA 5.19 1.56 0.83

Dividend

Metric BAX SOLV Medical Instruments & Supplies median
Dividend yield 2.60% — 0.99%
Payout ratio 0.57 — 0.00

Size

Metric BAX SOLV Medical Instruments & Supplies median
Market cap 12.15b 15.08b 938.39m

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