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 $15.0B 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 10.4×. 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 10.44 33.75
P/S 1.14 1.78 2.52
P/B 2.12 3.09 2.48
Price to free cash flow 16.07 n/m 25.19
EV/EBITDA 14.03 7.63 14.62
EV/Sales 1.78 2.37 2.88
Earnings yield (8.17%) 9.58% (2.67%)
Free cash flow yield 6.22% (0.80%) 0.09%

Profitability

Metric BAX SOLV Medical Instruments & Supplies median
Gross margin 30.08% 54.68% 54.29%
Operating margin (2.39%) 24.98% 1.07%
Net margin (9.27%) 17.26% (1.61%)
Free cash flow margin 7.11% (1.42%) 1.08%
Return on equity (15.78%) 33.96% (1.32%)
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%) 8.85%
EPS growth (last fiscal year) (47.24%) 221.74% 8.65%
Revenue growth, 5-year CAGR (0.75%) — 9.17%
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 0.10
Current ratio 1.95 1.02 2.48
Net debt to EBITDA 5.19 1.56 0.89

Dividend

Metric BAX SOLV Medical Instruments & Supplies median
Dividend yield 0.16% — 1.11%
Payout ratio — — 0.27

Size

Metric BAX SOLV Medical Instruments & Supplies median
Market cap 13.32b 14.96b 619.84m

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