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 $27.3B against $14.8B — 1.8× the size. West Pharmaceutical Services, Inc. trades at the lower P/E: 43.8× against 97.3×. West Pharmaceutical Services, Inc. grew revenue faster over the last twelve months: 12.6% against −2.84%. West Pharmaceutical Services, Inc. has the higher net margin (18.8% vs 1.91%) and the higher return on invested capital (18.0% vs 0.00%). Across the 19 metrics below, West Pharmaceutical Services, Inc. leads on 14 and Solventum Corporation on 5.

Valuation

Metric SOLV WST Medical Instruments & Supplies median
P/E 97.26 43.81 30.28
P/S 1.81 8.14 2.49
P/B 3.08 9.32 2.34
Price to free cash flow n/m 61.53 23.49
EV/EBITDA 7.60 28.41 14.87
EV/Sales 2.40 8.07 2.75
Earnings yield 1.03% 2.28% 0.00%
Free cash flow yield 0.00% 1.63% 0.59%

Profitability

Metric SOLV WST Medical Instruments & Supplies median
Gross margin 0.00% 37.59% 53.60%
Operating margin 0.00% 22.97% 1.97%
Net margin 1.91% 18.81% 0.00%
Free cash flow margin 0.00% 13.35% 2.36%
Return on equity 3.19% 21.23% 0.00%
Return on assets 1.11% 15.65% 0.00%
Return on invested capital 0.00% 18.01% 0.13%

Growth

Metric SOLV WST Medical Instruments & Supplies median
Revenue growth (TTM) (2.84%) 12.55% 8.97%
EPS growth (last fiscal year) 221.74% 1.49% 6.51%
Revenue growth, 5-year CAGR — 7.44% 8.85%
Net income growth, 5-year CAGR — 7.36% 0.00%

Health

Metric SOLV WST Medical Instruments & Supplies median
Debt to equity 0.11 0.07 0.10
Current ratio 1.03 2.82 2.47
Net debt to EBITDA 1.56 (0.78) 0.97

Dividend

Metric SOLV WST Medical Instruments & Supplies median
Dividend yield — 0.22% 1.02%
Payout ratio — 0.10 0.27

Size

Metric SOLV WST Medical Instruments & Supplies median
Market cap 14.84b 27.34b 1.71b

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