SOLV vs. VRTX: A Head-to-Head Stock Comparison
Here’s a clear look at SOLV and VRTX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | SOLV | VRTX |
|---|---|---|
| Company Name | Solventum Corporation | Vertex Pharmaceuticals Incorporated |
| Country | United States | United States |
| GICS Sector | Health Care | Health Care |
| GICS Industry Group | Health Care Equipment & Services | Pharmaceuticals, Biotechnology & Life Sciences |
| GICS Industry | Health Care Equipment & Supplies | Biotechnology |
| GICS Sub-Industry | Health Care Supplies | Biotechnology |
| Market Capitalization | 12.71 billion USD | 110.45 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | March 26, 2024 | July 24, 1991 |
| Security Type | Common Stock | Common Stock |
VRTX’s market capitalization (110.45 billion USD) is significantly greater than SOLV’s (12.71 billion USD), highlighting its more substantial market valuation.
Historical Performance
This chart compares the performance of SOLV and VRTX 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.
Historical Performance at a Glance
| Symbol | SOLV | VRTX |
|---|---|---|
| 5-Day Price Return | 8.81% | 2.55% |
| 13-Week Price Return | -4.68% | -8.95% |
| 26-Week Price Return | 6.29% | 2.15% |
| 52-Week Price Return | 10.13% | 2.40% |
| Month-to-Date Return | 8.94% | 1.82% |
| Year-to-Date Return | -7.40% | -4.01% |
| 10-Day Avg. Volume | 1.60M | 1.16M |
| 3-Month Avg. Volume | 1.23M | 1.38M |
| 3-Month Volatility | 31.52% | 32.67% |
| Beta | 1.08 | 0.30 |
SOLV’s beta of 1.08 points to significantly higher volatility compared to VRTX (beta: 0.30), suggesting SOLV has greater potential for both gains and losses relative to market movements.
Profitability
Return on Equity (TTM)
SOLV
36.74%
Health Care Equipment & Supplies Industry
- Max
- 26.09%
- Q3
- 16.36%
- Median
- 9.89%
- Q1
- 5.94%
- Min
- -5.61%
SOLV’s Return on Equity of 36.74% is exceptionally high, placing it well beyond the typical range for the Health Care Equipment & Supplies industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
VRTX
23.93%
Biotechnology Industry
- Max
- 101.12%
- Q3
- 11.08%
- Median
- -14.86%
- Q1
- -50.39%
- Min
- -131.19%
In the upper quartile for the Biotechnology industry, VRTX’s Return on Equity of 23.93% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
SOLV
18.69%
Health Care Equipment & Supplies Industry
- Max
- 24.63%
- Q3
- 13.65%
- Median
- 9.10%
- Q1
- 5.79%
- Min
- -3.53%
A Net Profit Margin of 18.69% places SOLV in the upper quartile for the Health Care Equipment & Supplies industry, signifying strong profitability and more effective cost management than most of its peers.
VRTX
35.51%
Biotechnology Industry
- Max
- 72.56%
- Q3
- 21.88%
- Median
- 0.40%
- Q1
- -143.75%
- Min
- -310.18%
A Net Profit Margin of 35.51% places VRTX in the upper quartile for the Biotechnology industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
SOLV
25.20%
Health Care Equipment & Supplies Industry
- Max
- 29.27%
- Q3
- 19.11%
- Median
- 13.43%
- Q1
- 11.26%
- Min
- 2.10%
An Operating Profit Margin of 25.20% places SOLV in the upper quartile for the Health Care Equipment & Supplies industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
VRTX
38.31%
Biotechnology Industry
- Max
- 75.52%
- Q3
- 24.73%
- Median
- 3.39%
- Q1
- -128.75%
- Min
- -343.63%
An Operating Profit Margin of 38.31% places VRTX in the upper quartile for the Biotechnology industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | SOLV | VRTX |
|---|---|---|
| Return on Equity (TTM) | 36.74% | 23.93% |
| Return on Assets (TTM) | 10.76% | 17.18% |
| Net Profit Margin (TTM) | 18.69% | 35.51% |
| Operating Profit Margin (TTM) | 25.20% | 38.31% |
| Gross Profit Margin (TTM) | 53.57% | 86.24% |
Financial Strength
Current Ratio (MRQ)
SOLV
1.23
Health Care Equipment & Supplies Industry
- Max
- 5.08
- Q3
- 2.86
- Median
- 2.16
- Q1
- 1.37
- Min
- 0.95
SOLV’s Current Ratio of 1.23 falls into the lower quartile for the Health Care Equipment & Supplies industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
VRTX
3.02
Biotechnology Industry
- Max
- 20.15
- Q3
- 10.29
- Median
- 4.47
- Q1
- 2.61
- Min
- 0.67
VRTX’s Current Ratio of 3.02 aligns with the median group of the Biotechnology industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
SOLV
1.00
Health Care Equipment & Supplies Industry
- Max
- 1.57
- Q3
- 0.78
- Median
- 0.45
- Q1
- 0.24
- Min
- 0.00
SOLV’s leverage is in the upper quartile of the Health Care Equipment & Supplies industry, with a Debt-to-Equity Ratio of 1.00. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
VRTX
0.01
Biotechnology Industry
- Max
- 1.49
- Q3
- 0.63
- Median
- 0.10
- Q1
- 0.00
- Min
- 0.00
VRTX’s Debt-to-Equity Ratio of 0.01 is typical for the Biotechnology industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
SOLV
5.94
Health Care Equipment & Supplies Industry
- Max
- 49.32
- Q3
- 22.52
- Median
- 7.72
- Q1
- 3.82
- Min
- -15.06
SOLV’s Interest Coverage Ratio of 5.94 is positioned comfortably within the norm for the Health Care Equipment & Supplies industry, indicating a standard and healthy capacity to cover its interest payments.
VRTX
72.37
Biotechnology Industry
- Max
- 72.37
- Q3
- 2.22
- Median
- -8.45
- Q1
- -60.58
- Min
- -132.16
VRTX’s Interest Coverage Ratio of 72.37 is in the upper quartile for the Biotechnology industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | SOLV | VRTX |
|---|---|---|
| Current Ratio (MRQ) | 1.23 | 3.02 |
| Quick Ratio (MRQ) | 0.89 | 2.38 |
| Debt-to-Equity Ratio (MRQ) | 1.00 | 0.01 |
| Interest Coverage Ratio (TTM) | 5.94 | 72.37 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | SOLV | VRTX |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | -3.71% | 7.82% |
| Revenue Growth (TTM vs Prior YoY) | 0.86% | 10.08% |
| 3-Year Revenue CAGR | 0.79% | 10.35% |
| 5-Year Revenue CAGR | -- | 14.10% |
EPS Growth
EPS Growth at a Glance
| Symbol | SOLV | VRTX |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 108.50% | 61.58% |
| EPS Growth (TTM vs Prior YoY) | 221.66% | -- |
| 3-Year EPS CAGR | 4.46% | 6.12% |
| 5-Year EPS CAGR | -- | 8.28% |
Dividend
Dividend Yield (TTM)
SOLV
0.00%
Health Care Equipment & Supplies Industry
- Max
- 5.83%
- Q3
- 2.51%
- Median
- 1.11%
- 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.
VRTX
0.00%
Biotechnology Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
VRTX 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.
Dividend Payout Ratio (TTM)
SOLV
0.00%
Health Care Equipment & Supplies Industry
- Max
- 160.00%
- Q3
- 79.65%
- Median
- 34.80%
- 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.
VRTX
0.00%
Biotechnology Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
VRTX 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.
Dividend at a Glance
| Symbol | SOLV | VRTX |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
SOLV
8.17
Health Care Equipment & Supplies Industry
- Max
- 49.69
- Q3
- 33.04
- Median
- 23.17
- Q1
- 19.91
- Min
- 8.17
In the lower quartile for the Health Care Equipment & Supplies industry, SOLV’s P/E Ratio of 8.17 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
VRTX
25.36
Biotechnology Industry
- Max
- 90.45
- Q3
- 48.61
- Median
- 23.97
- Q1
- 15.30
- Min
- 3.74
VRTX’s P/E Ratio of 25.36 is within the middle range for the Biotechnology industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
SOLV
1.53
Health Care Equipment & Supplies Industry
- Max
- 7.30
- Q3
- 3.92
- Median
- 2.71
- Q1
- 1.65
- Min
- 0.60
In the lower quartile for the Health Care Equipment & Supplies industry, SOLV’s P/S Ratio of 1.53 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
VRTX
9.00
Biotechnology Industry
- Max
- 58.50
- Q3
- 30.98
- Median
- 9.16
- Q1
- 5.02
- Min
- 0.76
VRTX’s P/S Ratio of 9.00 aligns with the market consensus for the Biotechnology industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
SOLV
2.72
Health Care Equipment & Supplies Industry
- Max
- 9.98
- Q3
- 5.44
- Median
- 3.22
- Q1
- 2.19
- Min
- 0.94
SOLV’s P/B Ratio of 2.72 is within the conventional range for the Health Care Equipment & Supplies industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
VRTX
5.87
Biotechnology Industry
- Max
- 21.94
- Q3
- 10.96
- Median
- 5.20
- Q1
- 3.09
- Min
- 0.57
VRTX’s P/B Ratio of 5.87 is within the conventional range for the Biotechnology industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | SOLV | VRTX |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 8.17 | 25.36 |
| Price-to-Sales Ratio (TTM) | 1.53 | 9.00 |
| Price-to-Book Ratio (MRQ) | 2.72 | 5.87 |
| Price-to-Free Cash Flow Ratio (TTM) | 135.19 | 34.45 |