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 $33.7B against $14.8B — 2.3× the size. ResMed Inc. trades at the lower P/E: 21.7× against 97.3×. ResMed Inc. grew revenue faster over the last twelve months: 9.04% against −2.84%. ResMed Inc. has the higher net margin (27.8% vs 1.91%) and the higher return on invested capital (22.8% vs 0.00%). Across the 19 metrics below, ResMed Inc. leads on 14 and Solventum Corporation on 5.

Valuation

Metric RMD SOLV Medical Instruments & Supplies median
P/E 21.69 97.26 30.28
P/S 5.96 1.81 2.49
P/B 5.74 3.08 2.34
Price to free cash flow 21.50 n/m 23.49
EV/EBITDA 15.66 7.60 14.87
EV/Sales 5.82 2.40 2.75
Earnings yield 4.61% 1.03% 0.00%
Free cash flow yield 4.65% 0.00% 0.59%

Profitability

Metric RMD SOLV Medical Instruments & Supplies median
Gross margin 61.13% 0.00% 53.60%
Operating margin 33.02% 0.00% 1.97%
Net margin 27.79% 1.91% 0.00%
Free cash flow margin 27.71% 0.00% 2.36%
Return on equity 26.40% 3.19% 0.00%
Return on assets 19.29% 1.11% 0.00%
Return on invested capital 22.81% 0.00% 0.13%

Growth

Metric RMD SOLV Medical Instruments & Supplies median
Revenue growth (TTM) 9.04% (2.84%) 8.97%
EPS growth (last fiscal year) 9.67% 221.74% 6.51%
Revenue growth, 5-year CAGR 12.08% — 8.85%
Net income growth, 5-year CAGR 26.27% — 0.00%

Health

Metric RMD SOLV Medical Instruments & Supplies median
Debt to equity 0.04 0.11 0.10
Current ratio 2.65 1.03 2.47
Net debt to EBITDA (0.50) 1.56 0.97

Dividend

Metric RMD SOLV Medical Instruments & Supplies median
Dividend yield 1.03% — 1.02%
Payout ratio 0.22 — 0.27

Size

Metric RMD SOLV Medical Instruments & Supplies median
Market cap 33.66b 14.84b 1.71b

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