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 $34.1B against $15.0B — 2.3× the size. Solventum Corporation trades at the lower P/E: 10.4× against 22.8×. 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 22.85 10.44 33.75
P/S 6.15 1.78 2.52
P/B 5.28 3.09 2.48
Price to free cash flow 21.35 n/m 25.19
EV/EBITDA 15.82 7.63 14.62
EV/Sales 5.96 2.37 2.88
Earnings yield 4.38% 9.58% (2.67%)
Free cash flow yield 4.68% (0.80%) 0.09%

Profitability

Metric RMD SOLV Medical Instruments & Supplies median
Gross margin 61.06% 54.68% 54.29%
Operating margin 33.37% 24.98% 1.07%
Net margin 26.94% 17.26% (1.61%)
Free cash flow margin 28.81% (1.42%) 1.08%
Return on equity 24.27% 33.96% (1.32%)
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%) 8.85%
EPS growth (last fiscal year) 9.67% 221.74% 8.65%
Revenue growth, 5-year CAGR 12.08% — 9.17%
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 0.10
Current ratio 3.10 1.02 2.48
Net debt to EBITDA (0.50) 1.56 0.89

Dividend

Metric RMD SOLV Medical Instruments & Supplies median
Dividend yield 1.03% — 1.11%
Payout ratio 0.24 — 0.27

Size

Metric RMD SOLV Medical Instruments & Supplies median
Market cap 34.07b 14.96b 619.84m

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