Seek Returns logo

AZN vs. SOLV: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AZN and SOLV, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AZN’s market capitalization of 430.65 billion USD is substantially larger than SOLV’s 13.58 billion USD, indicating a significant difference in their market valuations.

SOLV carries a higher beta at 0.69, indicating it’s more sensitive to market moves, while AZN (beta: 0.17) exhibits greater stability.

AZN trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, SOLV is a standard domestic listing.

SymbolAZNSOLV
Company NameAstraZeneca PLCSolventum Corporation
CountryGBUS
SectorHealthcareHealthcare
IndustryDrug Manufacturers - GeneralMedical - Care Facilities
CEOPascal Claude Roland SoriotBryan C. Hanson
Price69.45 USD78.5 USD
Market Cap430.65 billion USD13.58 billion USD
Beta0.170.69
ExchangeNASDAQNYSE
IPO DateMay 12, 1993April 1, 2024
ADRYesNo

Historical Performance

This chart compares the performance of AZN and SOLV by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AZN vs. SOLV: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AZN

19.18%

Drug Manufacturers - General Industry

Max
95.59%
Q3
76.92%
Median
30.71%
Q1
8.97%
Min
-14.85%

AZN’s Return on Equity of 19.18% is on par with the norm for the Drug Manufacturers - General industry, indicating its profitability relative to shareholder equity is typical for the sector.

SOLV

12.31%

Medical - Care Facilities Industry

Max
37.16%
Q3
13.80%
Median
6.51%
Q1
-11.55%
Min
-43.55%

SOLV’s Return on Equity of 12.31% is on par with the norm for the Medical - Care Facilities industry, indicating its profitability relative to shareholder equity is typical for the sector.

AZN vs. SOLV: A comparison of their ROE against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Return on Invested Capital

AZN

10.93%

Drug Manufacturers - General Industry

Max
25.72%
Q3
17.89%
Median
11.47%
Q1
9.39%
Min
2.87%

AZN’s Return on Invested Capital of 10.93% is in line with the norm for the Drug Manufacturers - General industry, reflecting a standard level of efficiency in generating profits from its capital base.

SOLV

8.05%

Medical - Care Facilities Industry

Max
20.36%
Q3
9.05%
Median
5.41%
Q1
-1.08%
Min
-9.00%

SOLV’s Return on Invested Capital of 8.05% is in line with the norm for the Medical - Care Facilities industry, reflecting a standard level of efficiency in generating profits from its capital base.

AZN vs. SOLV: A comparison of their ROIC against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Net Profit Margin

AZN

14.14%

Drug Manufacturers - General Industry

Max
34.51%
Q3
23.04%
Median
14.73%
Q1
11.78%
Min
2.18%

AZN’s Net Profit Margin of 14.14% is aligned with the median group of its peers in the Drug Manufacturers - General industry. This indicates its ability to convert revenue into profit is typical for the sector.

SOLV

4.55%

Medical - Care Facilities Industry

Max
12.40%
Q3
6.23%
Median
3.17%
Q1
-3.80%
Min
-13.43%

SOLV’s Net Profit Margin of 4.55% is aligned with the median group of its peers in the Medical - Care Facilities industry. This indicates its ability to convert revenue into profit is typical for the sector.

AZN vs. SOLV: A comparison of their Net Profit Margin against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Operating Profit Margin

AZN

19.21%

Drug Manufacturers - General Industry

Max
40.70%
Q3
28.90%
Median
23.41%
Q1
19.05%
Min
16.13%

AZN’s Operating Profit Margin of 19.21% is around the midpoint for the Drug Manufacturers - General industry, indicating that its efficiency in managing core business operations is typical for the sector.

SOLV

9.71%

Medical - Care Facilities Industry

Max
17.86%
Q3
10.40%
Median
6.40%
Q1
0.40%
Min
-10.86%

SOLV’s Operating Profit Margin of 9.71% is around the midpoint for the Medical - Care Facilities industry, indicating that its efficiency in managing core business operations is typical for the sector.

AZN vs. SOLV: A comparison of their Operating Margin against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Profitability at a Glance

SymbolAZNSOLV
Return on Equity (TTM)19.18%12.31%
Return on Assets (TTM)7.31%2.60%
Return on Invested Capital (TTM)10.93%8.05%
Net Profit Margin (TTM)14.14%4.55%
Operating Profit Margin (TTM)19.21%9.71%
Gross Profit Margin (TTM)81.41%54.59%

Financial Strength

Current Ratio

AZN

0.90

Drug Manufacturers - General Industry

Max
1.67
Q3
1.37
Median
1.26
Q1
0.87
Min
0.39

AZN’s Current Ratio of 0.90 aligns with the median group of the Drug Manufacturers - General industry, indicating that its short-term liquidity is in line with its sector peers.

SOLV

1.19

Medical - Care Facilities Industry

Max
2.67
Q3
1.76
Median
1.35
Q1
1.12
Min
0.57

SOLV’s Current Ratio of 1.19 aligns with the median group of the Medical - Care Facilities industry, indicating that its short-term liquidity is in line with its sector peers.

AZN vs. SOLV: A comparison of their Current Ratio against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Debt-to-Equity Ratio

AZN

0.77

Drug Manufacturers - General Industry

Max
2.95
Q3
2.44
Median
0.86
Q1
0.68
Min
0.09

AZN’s Debt-to-Equity Ratio of 0.77 is typical for the Drug Manufacturers - General industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

SOLV

2.43

Medical - Care Facilities Industry

Max
2.55
Q3
1.40
Median
0.76
Q1
0.26
Min
0.01

SOLV’s leverage is in the upper quartile of the Medical - Care Facilities industry, with a Debt-to-Equity Ratio of 2.43. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

AZN vs. SOLV: A comparison of their D/E Ratio against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Interest Coverage Ratio

AZN

7.95

Drug Manufacturers - General Industry

Max
27.46
Q3
14.40
Median
7.80
Q1
4.07
Min
1.67

AZN’s Interest Coverage Ratio of 7.95 is positioned comfortably within the norm for the Drug Manufacturers - General industry, indicating a standard and healthy capacity to cover its interest payments.

SOLV

1.87

Medical - Care Facilities Industry

Max
16.29
Q3
6.85
Median
2.93
Q1
0.35
Min
-7.11

SOLV’s Interest Coverage Ratio of 1.87 is positioned comfortably within the norm for the Medical - Care Facilities industry, indicating a standard and healthy capacity to cover its interest payments.

AZN vs. SOLV: A comparison of their Interest Coverage against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Financial Strength at a Glance

SymbolAZNSOLV
Current Ratio (TTM)0.901.19
Quick Ratio (TTM)0.700.85
Debt-to-Equity Ratio (TTM)0.772.43
Debt-to-Asset Ratio (TTM)0.300.54
Net Debt-to-EBITDA Ratio (TTM)1.496.13
Interest Coverage Ratio (TTM)7.951.87

Growth

The following charts compare key year-over-year (YoY) growth metrics for AZN and SOLV. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AZN vs. SOLV: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AZN vs. SOLV: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AZN vs. SOLV: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AZN

1.87%

Drug Manufacturers - General Industry

Max
8.72%
Q3
4.10%
Median
3.34%
Q1
1.89%
Min
0.00%

AZN’s Dividend Yield of 1.87% is in the lower quartile for the Drug Manufacturers - General industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

SOLV

0.00%

Medical - Care Facilities Industry

Max
2.79%
Q3
0.08%
Median
0.00%
Q1
0.00%
Min
0.00%

SOLV currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

AZN vs. SOLV: A comparison of their Dividend Yield against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Dividend Payout Ratio

AZN

63.60%

Drug Manufacturers - General Industry

Max
266.46%
Q3
78.91%
Median
60.27%
Q1
43.74%
Min
0.00%

AZN’s Dividend Payout Ratio of 63.60% is within the typical range for the Drug Manufacturers - General industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

SOLV

0.00%

Medical - Care Facilities Industry

Max
56.48%
Q3
4.48%
Median
0.00%
Q1
0.00%
Min
0.00%

SOLV has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

AZN vs. SOLV: A comparison of their Payout Ratio against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Dividend at a Glance

SymbolAZNSOLV
Dividend Yield (TTM)1.87%0.00%
Dividend Payout Ratio (TTM)63.60%0.00%

Valuation

Price-to-Earnings Ratio

AZN

28.12

Drug Manufacturers - General Industry

Max
27.96
Q3
25.84
Median
18.32
Q1
16.65
Min
3.39

At 28.12, AZN’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Drug Manufacturers - General industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

SOLV

36.07

Medical - Care Facilities Industry

Max
40.40
Q3
28.24
Median
24.89
Q1
13.53
Min
8.53

A P/E Ratio of 36.07 places SOLV in the upper quartile for the Medical - Care Facilities industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

AZN vs. SOLV: A comparison of their P/E Ratio against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Forward P/E to Growth Ratio

AZN

2.56

Drug Manufacturers - General Industry

Max
3.10
Q3
3.09
Median
2.72
Q1
2.18
Min
1.02

AZN’s Forward PEG Ratio of 2.56 is within the middle range of its peers in the Drug Manufacturers - General industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

SOLV

-0.36

Medical - Care Facilities Industry

Max
4.23
Q3
3.06
Median
1.16
Q1
0.77
Min
0.04

SOLV has a negative Forward PEG Ratio of -0.36. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.

AZN vs. SOLV: A comparison of their Forward PEG Ratio against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Price-to-Sales Ratio

AZN

3.98

Drug Manufacturers - General Industry

Max
6.47
Q3
4.47
Median
3.53
Q1
1.96
Min
0.41

AZN’s P/S Ratio of 3.98 aligns with the market consensus for the Drug Manufacturers - General industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

SOLV

1.63

Medical - Care Facilities Industry

Max
2.38
Q3
1.50
Median
0.79
Q1
0.49
Min
0.04

SOLV’s P/S Ratio of 1.63 is in the upper echelon for the Medical - Care Facilities industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

AZN vs. SOLV: A comparison of their P/S Ratio against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Price-to-Book Ratio

AZN

5.33

Drug Manufacturers - General Industry

Max
7.80
Q3
7.80
Median
5.30
Q1
4.06
Min
1.08

The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.

SOLV

4.18

Medical - Care Facilities Industry

Max
7.73
Q3
4.07
Median
2.16
Q1
1.44
Min
0.66

SOLV’s P/B Ratio of 4.18 is in the upper tier for the Medical - Care Facilities industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

AZN vs. SOLV: A comparison of their P/B Ratio against their respective Drug Manufacturers - General and Medical - Care Facilities industry benchmarks.

Valuation at a Glance

SymbolAZNSOLV
Price-to-Earnings Ratio (P/E, TTM)28.1236.07
Forward PEG Ratio (TTM)2.56-0.36
Price-to-Sales Ratio (P/S, TTM)3.981.63
Price-to-Book Ratio (P/B, TTM)5.334.18
Price-to-Free Cash Flow Ratio (P/FCF, TTM)22.5935.28
EV-to-EBITDA (TTM)13.8217.41
EV-to-Sales (TTM)4.462.52