SOLV vs. VRTX: A Head-to-Head Stock Comparison
Updated onHere’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 | Health Care Equipment & Supplies | Biotechnology |
| Market Capitalization | 12.63 billion USD | 101.11 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | March 26, 2024 | July 24, 1991 |
| Security Type | Common Stock | Common Stock |
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 | -0.48% | 1.04% |
| 13-Week Price Return | -3.85% | -10.51% |
| 26-Week Price Return | -1.96% | -14.75% |
| 52-Week Price Return | 22.54% | -19.20% |
| Month-to-Date Return | 2.09% | -13.68% |
| Year-to-Date Return | 10.28% | -2.07% |
| 10-Day Avg. Volume | 1.86M | 2.23M |
| 3-Month Avg. Volume | 1.00M | 1.72M |
| 3-Month Volatility | 23.47% | 47.18% |
| Beta | 0.85 | 0.44 |
Profitability
Return on Equity (TTM)
SOLV
11.61%
Health Care Equipment & Supplies Industry
- Max
- 34.53%
- Q3
- 19.38%
- Median
- 9.52%
- Q1
- 4.86%
- Min
- -7.58%
SOLV’s Return on Equity of 11.61% is on par with the norm for the Health Care Equipment & Supplies industry, indicating its profitability relative to shareholder equity is typical for the sector.
VRTX
22.14%
Biotechnology Industry
- Max
- 77.14%
- Q3
- 10.76%
- Median
- -20.08%
- Q1
- -42.71%
- Min
- -119.20%
In the upper quartile for the Biotechnology industry, VRTX’s Return on Equity of 22.14% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
SOLV
4.52%
Health Care Equipment & Supplies Industry
- Max
- 23.34%
- Q3
- 13.06%
- Median
- 9.53%
- Q1
- 5.96%
- Min
- -3.87%
Falling into the lower quartile for the Health Care Equipment & Supplies industry, SOLV’s Net Profit Margin of 4.52% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
VRTX
31.86%
Biotechnology Industry
- Max
- 59.44%
- Q3
- 16.21%
- Median
- -11.49%
- Q1
- -167.42%
- Min
- -409.07%
A Net Profit Margin of 31.86% 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
9.26%
Health Care Equipment & Supplies Industry
- Max
- 29.44%
- Q3
- 17.80%
- Median
- 13.95%
- Q1
- 8.73%
- Min
- -3.56%
SOLV’s Operating Profit Margin of 9.26% is around the midpoint for the Health Care Equipment & Supplies industry, indicating that its efficiency in managing core business operations is typical for the sector.
VRTX
34.36%
Biotechnology Industry
- Max
- 60.62%
- Q3
- 20.76%
- Median
- -12.41%
- Q1
- -181.14%
- Min
- -482.02%
An Operating Profit Margin of 34.36% 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) | 11.61% | 22.14% |
| Return on Assets (TTM) | 2.58% | 15.87% |
| Net Profit Margin (TTM) | 4.52% | 31.86% |
| Operating Profit Margin (TTM) | 9.26% | 34.36% |
| Gross Profit Margin (TTM) | 54.65% | 86.11% |
Financial Strength
Current Ratio (MRQ)
SOLV
1.22
Health Care Equipment & Supplies Industry
- Max
- 4.90
- Q3
- 3.05
- Median
- 2.14
- Q1
- 1.49
- Min
- 0.86
SOLV’s Current Ratio of 1.22 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
2.52
Biotechnology Industry
- Max
- 19.31
- Q3
- 9.38
- Median
- 4.54
- Q1
- 2.45
- Min
- 0.76
VRTX’s Current Ratio of 2.52 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
2.14
Health Care Equipment & Supplies Industry
- Max
- 1.49
- Q3
- 0.71
- Median
- 0.45
- Q1
- 0.14
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.14, SOLV operates with exceptionally high leverage compared to the Health Care Equipment & Supplies industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
VRTX
0.01
Biotechnology Industry
- Max
- 1.35
- Q3
- 0.64
- Median
- 0.09
- 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
2.65
Health Care Equipment & Supplies Industry
- Max
- 58.29
- Q3
- 25.56
- Median
- 9.06
- Q1
- 3.60
- Min
- -28.92
In the lower quartile for the Health Care Equipment & Supplies industry, SOLV’s Interest Coverage Ratio of 2.65 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
VRTX
72.37
Biotechnology Industry
- Max
- 72.37
- Q3
- 1.91
- Median
- -7.81
- Q1
- -63.90
- Min
- -153.80
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) | 1.22 | 2.52 |
| Quick Ratio (MRQ) | 0.86 | 2.00 |
| Debt-to-Equity Ratio (MRQ) | 2.14 | 0.01 |
| Interest Coverage Ratio (TTM) | 2.65 | 72.37 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
SOLV
0.00%
Health Care Equipment & Supplies Industry
- Max
- 4.05%
- Q3
- 1.76%
- Median
- 0.71%
- 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
- 72.47%
- Median
- 27.49%
- 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
33.33
Health Care Equipment & Supplies Industry
- Max
- 73.48
- Q3
- 51.69
- Median
- 34.31
- Q1
- 25.74
- Min
- 11.47
SOLV’s P/E Ratio of 33.33 is within the middle range for the Health Care Equipment & Supplies industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
VRTX
28.00
Biotechnology Industry
- Max
- 60.14
- Q3
- 38.17
- Median
- 29.01
- Q1
- 15.12
- Min
- 0.00
VRTX’s P/E Ratio of 28.00 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
1.51
Health Care Equipment & Supplies Industry
- Max
- 9.53
- Q3
- 5.26
- Median
- 3.39
- Q1
- 2.13
- Min
- 0.00
In the lower quartile for the Health Care Equipment & Supplies industry, SOLV’s P/S Ratio of 1.51 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
8.92
Biotechnology Industry
- Max
- 76.98
- Q3
- 36.53
- Median
- 9.49
- Q1
- 4.49
- Min
- 0.00
VRTX’s P/S Ratio of 8.92 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
3.60
Health Care Equipment & Supplies Industry
- Max
- 10.85
- Q3
- 5.98
- Median
- 3.48
- Q1
- 2.43
- Min
- 0.69
SOLV’s P/B Ratio of 3.60 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
6.66
Biotechnology Industry
- Max
- 20.53
- Q3
- 9.76
- Median
- 4.77
- Q1
- 2.49
- Min
- 0.59
VRTX’s P/B Ratio of 6.66 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) | 33.33 | 28.00 |
| Price-to-Sales Ratio (TTM) | 1.51 | 8.92 |
| Price-to-Book Ratio (MRQ) | 3.60 | 6.66 |
| Price-to-Free Cash Flow Ratio (TTM) | 54.92 | 29.10 |