Head-To-Head Survey: Solventum (NYSE:SOLV) versus Establishment Labs (NASDAQ:ESTA)

Solventum (NYSE:SOLV) and Establishment Labs (NASDAQ:ESTA) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Volatility & Risk

Solventum has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Establishment Labs has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Earnings & Valuation

This table compares Solventum and Establishment Labs”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solventum	$8.33 billion	1.54	$1.56 billion	$8.16	9.10
Establishment Labs	$211.08 million	9.17	-$51.06 million	($1.49)	-44.13

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.

Analyst Recommendations

This is a breakdown of recent recommendations for Solventum and Establishment Labs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solventum	1	5	8	0	2.50
Establishment Labs	1	1	6	0	2.63

Solventum currently has a consensus target price of $84.25, suggesting a potential upside of 13.46%. Establishment Labs has a consensus target price of $87.14, suggesting a potential upside of 32.52%. Given Establishment Labs’ stronger consensus rating and higher possible upside, analysts clearly believe Establishment Labs is more favorable than Solventum.

Profitability

This table compares Solventum and Establishment Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solventum	17.33%	23.51%	7.63%
Establishment Labs	-19.05%	-218.77%	-12.31%

Insider and Institutional Ownership

72.9% of Establishment Labs shares are held by institutional investors. 0.2% of Solventum shares are held by insiders. Comparatively, 10.0% of Establishment Labs shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Solventum beats Establishment Labs on 8 of the 14 factors compared between the two stocks.

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.

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.