Solventum Corporation (SOLV) vs West Pharmaceutical Services, Inc. (WST)

Solventum Corporation and West Pharmaceutical Services, Inc. are both Medical Instruments & Supplies companies. West Pharmaceutical Services, Inc. is the larger, with a market value of $26.3B against $15.1B — 1.7× the size. Solventum Corporation trades at the lower P/E: 10.9× against 47.1×. West Pharmaceutical Services, Inc. grew revenue faster over the last twelve months: 12.4% against −0.93%. Solventum Corporation has the higher net margin (17.3% vs 17.0%) and the lower return on invested capital (13.4% vs 15.4%). Across the 19 metrics below, Solventum Corporation leads on 11 and West Pharmaceutical Services, Inc. on 8.

Valuation

Metric SOLV WST Medical Instruments & Supplies median
P/E 10.89 47.07 34.17
P/S 1.86 7.88 2.83
P/B 3.22 8.77 2.82
Price to free cash flow n/m 60.56 25.69
EV/EBITDA 7.88 30.16 16.08
EV/Sales 2.45 7.81 3.06
Earnings yield 9.18% 2.12% (1.84%)
Free cash flow yield (0.76%) 1.65% 0.17%

Profitability

Metric SOLV WST Medical Instruments & Supplies median
Gross margin 54.68% 36.79% 54.62%
Operating margin 24.98% 20.45% 1.64%
Net margin 17.26% 16.98% 0.00%
Free cash flow margin (1.42%) 13.13% 1.61%
Return on equity 33.96% 19.09% 0.00%
Return on assets 9.78% 14.07% 0.00%
Return on invested capital 13.40% 15.42% 0.00%

Growth

Metric SOLV WST Medical Instruments & Supplies median
Revenue growth (TTM) (0.93%) 12.38% 9.20%
EPS growth (last fiscal year) 221.74% 1.49% —
Revenue growth, 5-year CAGR — 7.44% 9.48%
Net income growth, 5-year CAGR — 7.36% 0.00%

Health

Metric SOLV WST Medical Instruments & Supplies median
Debt to equity 1.10 0.07 0.08
Current ratio 1.02 2.82 2.49
Net debt to EBITDA 1.56 (0.78) 0.83

Dividend

Metric SOLV WST Medical Instruments & Supplies median
Dividend yield — 0.14% 0.99%
Payout ratio — 0.11 0.00

Size

Metric SOLV WST Medical Instruments & Supplies median
Market cap 15.08b 26.29b 938.39m

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