Establishment Labs (NASDAQ:ESTA – Get Free Report) and Solventum (NYSE:SOLV – Get Free Report) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.
Analyst Ratings
This is a summary of current recommendations for Establishment Labs and Solventum, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Establishment Labs | 1 | 1 | 6 | 0 | 2.63 |
| Solventum | 1 | 5 | 7 | 0 | 2.46 |
Establishment Labs currently has a consensus target price of $87.14, suggesting a potential upside of 21.88%. Solventum has a consensus target price of $85.91, suggesting a potential upside of 15.91%. Given Establishment Labs’ stronger consensus rating and higher probable upside, analysts plainly believe Establishment Labs is more favorable than Solventum.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Establishment Labs | -19.05% | -202.78% | -12.39% |
| Solventum | 17.33% | 23.51% | 7.63% |
Valuation & Earnings
This table compares Establishment Labs and Solventum”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Establishment Labs | $211.08 million | 9.96 | -$51.06 million | ($1.49) | -47.99 |
| Solventum | $8.26 billion | 1.55 | $1.56 billion | $8.16 | 9.08 |
Solventum has higher revenue and earnings than Establishment Labs. Establishment Labs is trading at a lower price-to-earnings ratio than Solventum, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
72.9% of Establishment Labs shares are held by institutional investors. 10.0% of Establishment Labs shares are held by insiders. Comparatively, 0.2% of Solventum shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Establishment Labs has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Solventum has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.
Summary
Solventum beats Establishment Labs on 7 of the 13 factors compared between the two stocks.
About Establishment Labs
Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander. The company sells its products to physicians, hospitals, and clinics through distributors and direct sales force in Europe, the Middle East, Latin America, and Asia. Establishment Labs Holdings Inc. was incorporated in 2004 and is headquartered in Alajuela, Costa Rica.
About Solventum
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.
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