Becton, Dickinson and Company (BDX) vs Solventum Corporation (SOLV)

Becton, Dickinson and Company and Solventum Corporation are both Medical Instruments & Supplies companies. Becton, Dickinson and Company is the larger, with a market value of $52.8B against $15.0B — 3.5× the size. Solventum Corporation trades at the lower P/E: 10.4× against 57.8×. Becton, Dickinson and Company grew revenue faster over the last twelve months: 13.1% against −0.93%. Solventum Corporation has the higher net margin (17.3% vs 4.20%) and the higher return on invested capital (13.4% vs 3.89%). Across the 19 metrics below, Solventum Corporation leads on 14 and Becton, Dickinson and Company on 5.

Valuation

Metric BDX SOLV Medical Instruments & Supplies median
P/E 57.76 10.44 33.75
P/S 2.35 1.78 2.52
P/B 2.16 3.09 2.48
Price to free cash flow 16.45 n/m 25.19
EV/EBITDA 13.72 7.63 14.62
EV/Sales 2.91 2.37 2.88
Earnings yield 1.73% 9.58% (2.67%)
Free cash flow yield 6.08% (0.80%) 0.09%

Profitability

Metric BDX SOLV Medical Instruments & Supplies median
Gross margin 46.73% 54.68% 54.29%
Operating margin 10.30% 24.98% 1.07%
Net margin 4.20% 17.26% (1.61%)
Free cash flow margin 14.29% (1.42%) 1.08%
Return on equity 3.77% 33.96% (1.32%)
Return on assets 1.78% 9.78% 0.00%
Return on invested capital 3.89% 13.40% 0.00%

Growth

Metric BDX SOLV Medical Instruments & Supplies median
Revenue growth (TTM) 13.14% (0.93%) 8.85%
EPS growth (last fiscal year) (1.85%) 221.74% 8.65%
Revenue growth, 5-year CAGR 6.32% — 9.17%
Net income growth, 5-year CAGR 16.95% — 0.00%

Health

Metric BDX SOLV Medical Instruments & Supplies median
Debt to equity 0.55 1.10 0.10
Current ratio 0.87 1.02 2.48
Net debt to EBITDA 3.33 1.56 0.89

Dividend

Metric BDX SOLV Medical Instruments & Supplies median
Dividend yield 2.07% — 1.11%
Payout ratio 1.20 — 0.27

Size

Metric BDX SOLV Medical Instruments & Supplies median
Market cap 52.78b 14.96b 619.84m

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