Medline Inc. (MDLN) vs Solventum Corporation (SOLV)

Medline Inc. and Solventum Corporation are both Medical Instruments & Supplies companies. Medline Inc. is the larger, with a market value of $48.1B against $15.0B — 3.2× the size. Solventum Corporation has the higher net margin (17.3% vs 2.37%) and the lower return on invested capital (13.4% vs 19.9%). Across the 15 metrics below, Medline Inc. leads on 10 and Solventum Corporation on 5.

Valuation

Metric MDLN SOLV Medical Instruments & Supplies median
P/E — 10.44 33.75
P/S 1.04 1.78 2.52
P/B 1.62 3.09 2.48
Price to free cash flow 13.38 n/m 25.19
EV/EBITDA 4.05 7.63 14.62
EV/Sales 1.37 2.37 2.88
Earnings yield — 9.58% (2.67%)
Free cash flow yield 7.48% (0.80%) 0.09%

Profitability

Metric MDLN SOLV Medical Instruments & Supplies median
Gross margin 46.27% 54.68% 54.29%
Operating margin 31.12% 24.98% 1.07%
Net margin 2.37% 17.26% (1.61%)
Free cash flow margin 7.75% (1.42%) 1.08%
Return on equity 0.00% 33.96% (1.32%)
Return on assets 3.58% 9.78% 0.00%
Return on invested capital 19.94% 13.40% 0.00%

Growth

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

Health

Metric MDLN SOLV Medical Instruments & Supplies median
Debt to equity 0.66 1.10 0.10
Current ratio 4.33 1.02 2.48
Net debt to EBITDA 3.24 1.56 0.89

Dividend

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

Size

Metric MDLN SOLV Medical Instruments & Supplies median
Market cap 48.08b 14.96b 619.84m

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