Critical Analysis: Solventum (SOLV) vs. Its Peers

Solventum (NYSE:SOLV) is one of 238 publicly-traded companies in the “Surgical & medical instruments” industry, but how does it contrast to its rivals? We will compare Solventum to similar businesses based on the strength of its profitability, valuation, earnings, institutional ownership, analyst recommendations, dividends and risk.

Profitability

This table compares Solventum and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solventum	N/A	N/A	N/A
Solventum Competitors	-546.70%	-173.81%	-26.43%

Valuation & Earnings

This table compares Solventum and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Solventum	$8.25 billion	N/A	27.19
Solventum Competitors	$987.72 million	$56.11 million	2.64

Solventum has higher revenue, but lower earnings than its rivals. Solventum is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

47.5% of shares of all “Surgical & medical instruments” companies are held by institutional investors. 15.2% of shares of all “Surgical & medical instruments” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Solventum and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solventum	1	9	1	0	2.00
Solventum Competitors	2101	5235	9489	291	2.47

Solventum currently has a consensus price target of $79.86, indicating a potential upside of 6.78%. As a group, “Surgical & medical instruments” companies have a potential upside of 34.08%. Given Solventum’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Solventum has less favorable growth aspects than its rivals.

Summary

Solventum rivals beat Solventum on 6 of the 11 factors compared.

Solventum Company Profile

Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. It operates through four segments: Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration. The Medsurg segment is a provider of solutions including advanced wound care, I.V. site management, sterilization assurance, temperature management, surgical supplies, stethoscopes, and medical electrodes. The Dental Solutions segment provides a comprehensive suite of dental and orthodontic products including brackets, aligners, restorative cements, and bonding agents. The Health Information Systems provides software solutions including computer-assisted, physician documentation, direct-to-bill and coding automation, classification methodologies, speech, recognition, and data visualization platforms. The Purification and Filtration segment provides purification and filtration technologies including filters, purifiers, cartridges, and membranes. The company was incorporated in 2023 and is based in Saint Paul, Minnesota.