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 $27.0B against $15.0B — 1.8× the size. Solventum Corporation trades at the lower P/E: 10.4× against 48.7×. 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 10.44 48.66 33.75
P/S 1.78 8.15 2.52
P/B 3.09 9.07 2.48
Price to free cash flow n/m 62.60 25.19
EV/EBITDA 7.63 31.19 14.62
EV/Sales 2.37 8.08 2.88
Earnings yield 9.58% 2.06% (2.67%)
Free cash flow yield (0.80%) 1.60% 0.09%

Profitability

Metric SOLV WST Medical Instruments & Supplies median
Gross margin 54.68% 36.79% 54.29%
Operating margin 24.98% 20.45% 1.07%
Net margin 17.26% 16.98% (1.61%)
Free cash flow margin (1.42%) 13.13% 1.08%
Return on equity 33.96% 19.09% (1.32%)
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% 8.85%
EPS growth (last fiscal year) 221.74% 1.49% 8.65%
Revenue growth, 5-year CAGR — 7.44% 9.17%
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 0.10
Current ratio 1.02 2.82 2.48
Net debt to EBITDA 1.56 (0.78) 0.89

Dividend

Metric SOLV WST Medical Instruments & Supplies median
Dividend yield — 0.23% 1.11%
Payout ratio — 0.11 0.27

Size

Metric SOLV WST Medical Instruments & Supplies median
Market cap 14.96b 26.96b 619.84m

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