ResMed Inc. (RMD) vs Solventum Corporation (SOLV)

ResMed Inc. and Solventum Corporation are both Medical Instruments & Supplies companies. ResMed Inc. is the larger, with a market value of $31.9B against $15.1B — 2.1× the size. Solventum Corporation trades at the lower P/E: 10.9× against 21.3×. ResMed Inc. grew revenue faster over the last twelve months: 9.85% against −0.93%. ResMed Inc. has the higher net margin (26.9% vs 17.3%) and the higher return on invested capital (21.4% vs 13.4%). Across the 19 metrics below, ResMed Inc. leads on 11 and Solventum Corporation on 8.

Valuation

Metric RMD SOLV Medical Instruments & Supplies median
P/E 21.25 10.89 34.17
P/S 5.72 1.86 2.83
P/B 4.91 3.22 2.82
Price to free cash flow 19.86 n/m 25.69
EV/EBITDA 14.68 7.88 16.08
EV/Sales 5.53 2.45 3.06
Earnings yield 4.71% 9.18% (1.84%)
Free cash flow yield 5.03% (0.76%) 0.17%

Profitability

Metric RMD SOLV Medical Instruments & Supplies median
Gross margin 61.06% 54.68% 54.62%
Operating margin 33.37% 24.98% 1.64%
Net margin 26.94% 17.26% 0.00%
Free cash flow margin 28.81% (1.42%) 1.61%
Return on equity 24.27% 33.96% 0.00%
Return on assets 17.77% 9.78% 0.00%
Return on invested capital 21.38% 13.40% 0.00%

Growth

Metric RMD SOLV Medical Instruments & Supplies median
Revenue growth (TTM) 9.85% (0.93%) 9.20%
EPS growth (last fiscal year) 9.67% 221.74% —
Revenue growth, 5-year CAGR 12.08% — 9.48%
Net income growth, 5-year CAGR 26.27% — 0.00%

Health

Metric RMD SOLV Medical Instruments & Supplies median
Debt to equity 0.06 1.10 0.08
Current ratio 3.10 1.02 2.49
Net debt to EBITDA (0.50) 1.56 0.83

Dividend

Metric RMD SOLV Medical Instruments & Supplies median
Dividend yield 1.06% — 0.99%
Payout ratio 0.29 — 0.00

Size

Metric RMD SOLV Medical Instruments & Supplies median
Market cap 31.91b 15.08b 938.39m

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