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 $14.8B against $13.3B — 1.1× the size. Baxter International Inc. has negative trailing earnings, so its P/E is not meaningful; Solventum Corporation trades at 97.3×. Baxter International Inc. grew revenue faster over the last twelve months: 5.33% against −2.84%. Solventum Corporation has the higher net margin (1.91% vs −6.23%) and the higher return on invested capital (0.00% vs −1.05%). Across the 18 metrics below, Solventum Corporation leads on 10 and Baxter International Inc. on 8.

Valuation

Metric BAX SOLV Medical Instruments & Supplies median
P/E n/m 97.26 30.28
P/S 1.14 1.81 2.49
P/B 2.04 3.08 2.34
Price to free cash flow 11.63 n/m 23.49
EV/EBITDA 13.15 7.60 14.87
EV/Sales 1.71 2.40 2.75
Earnings yield (5.52%) 1.03% 0.00%
Free cash flow yield 8.60% 0.00% 0.59%

Profitability

Metric BAX SOLV Medical Instruments & Supplies median
Gross margin 30.09% 0.00% 53.60%
Operating margin (1.90%) 0.00% 1.97%
Net margin (6.23%) 1.91% 0.00%
Free cash flow margin 9.79% 0.00% 2.36%
Return on equity (10.56%) 3.19% 0.00%
Return on assets (3.57%) 1.11% 0.00%
Return on invested capital (1.05%) 0.00% 0.13%

Growth

Metric BAX SOLV Medical Instruments & Supplies median
Revenue growth (TTM) 5.33% (2.84%) 8.97%
EPS growth (last fiscal year) (47.24%) 221.74% 6.51%
Revenue growth, 5-year CAGR (0.75%) — 8.85%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric BAX SOLV Medical Instruments & Supplies median
Debt to equity 1.33 0.11 0.10
Current ratio 1.79 1.03 2.47
Net debt to EBITDA 5.19 1.56 0.97

Dividend

Metric BAX SOLV Medical Instruments & Supplies median
Dividend yield 0.16% — 1.02%
Payout ratio — — 0.27

Size

Metric BAX SOLV Medical Instruments & Supplies median
Market cap 13.27b 14.84b 1.71b

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